Guide and Information About Starting Export Business

Every entrepreneur dreams of having his business dealt with international customers. It’s an irrefutable fact that entering into exports can be a great way to expand a business. But how to go about it? Where to begin? How much time does it take to get a permit? How much does it cost? These are the frequent questions asked by anticipating exporters. Taking the first step seems difficult; the kind of documents required, where to apply, whom to approach, and so on. A key part of this is Prior Preparation. Never rush into anything; it might cost you a lot of money and time. Be prepared and be well aware of the rules. Having a plan is a must for people venturing into exports for the first time.

1. Import Export Code (IEC)

The first step is to apply for an import-export code (IEC) to import or export goods. You may apply for it online on the Directorate General of Foreign Trade (DGFT) website or contact the nearest local authority of DGFT to fill the required forms. Normally, the documents and information required are—passport size photographs, personal contact details, contact details of company/business, business type (Manufacturer/dealer, etc.), type of export, bank account details, PAN card details, etc. In addition, a certificate from the bank (with whom you have an account) may be required. If all documents are in order, you may expect to receive the IE code through the post to your official address within a stipulated time (usually one to two weeks). The next thing to do is to register your Import/Export Code and your Authorized Dealer Code details with the docks through which you want to export or import. For this, you need to approach your bank. The bank will issue a letter to the Commissioner of Customs. After the registration is done, you can export or import goods through the registered port.

2. Shipping Procedure

Take special care while going through the process of shipping procedure for import/export. This is an area first time exporters may face some complexity. Shipping Bills have to be filed for all goods moved for exports. There are different types of Shipping Bills: Duty-free shipping bills, Dutiable shipping bill, Shipping bill under Duty drawback, Ex-bond shipping bills. Similarly, there are different types of Bill of Export for duty-free goods, dutiable goods, goods under claim for duty drawback, and duty-free goods ex-bond.

3. Get Your Documents Ready in a Proper Manner

The documentation process related to exports may be demanding; it is good for aspirant exporters to plan ahead and have all the relevant details at hand. Mistakes in preparing the documents, failure to adapt products to meet international policies, overlooking packaging/casing/wrapping needs required to meet legal regulations, miscalculating the expenses (this is a huge mistake), mistakes related to pricing (under-pricing/overpricing) your products are some of the common slip-ups that people tend to fall prey to. Do your research properly!

4. Choosing the Product and Type for Your Export Business

Last but not least; decide the product you want to export. Indian exports are appreciated in agricultural products, textile products, apparel, chemicals, jewelry, and home furnishing goods. One should determine these items by identifying the need in your chosen area, your potential clients. Another important thing to determine is the type of export business that you want to start. It can be an export management company, export trading company, or an import/export merchant.