It is a well-known fact that the summed-up merchandise export growth for the years 2021 to 2022 is estimated at around 418 billion dollars. The purpose of trade in India is to significantly enhance exports from the country. To do so, the government decided to take initiatives to ease the export process, including online transactions and convenient approvals of licenses. Furthermore, the government has inaugurated various export promotion councils and offers financial aid via incentives and various schemes for increasing India’s exports. Successful enterprises, such as Kunal International India, are the best in their field. However, for an entrepreneur who intends to kick start an export business, it is indispensable to gain a robust understanding of the procedure, regulations, and required documentation.
Governing officials involved
For the hassle-free and systematic process in every export step, the government has built various trade authoritative bodies and departments for regulation. Companies such as Kunal International India have followed it for many years, making them well-established in the industry. The following institutions involved are-
- The Federation of Import Export Organizations, also known as FIEO, is known as the primary body meant to govern each export promotion council that is set up for various categories of export services and products.
- The Directorate General of Foreign Trade, or DGFT, is the leading governing body efficiently formulating and regulating import and export policies in the nation. It further issues the IEC and various certificates for exporters.
- The Central Board of Indirect and Customs, also called CBIC, is a well-known body member of the Department of Revenue. Its function is to regulate policies for customs, duties, excise, central goods and services tax, and integrated goods and services tax.
- The Export Inspection Council is known to be a government body established for testing and certifying export products. Its primary function is to encourage manufacturers and exporters to implement superior quality management systems for producing quality products with respect to international standards.
Export process detailed
Kick starting an export business can be conveniently performed due to the ever-growing internet advancements and adoption of technology by MSMEs, exporters, international customers, and importers. The product category, sale, and shipping depend on the origin and destination of the product or service. However, a few vital measures are to be followed for performing an export business in India. The standards are as follows-
What to export?
The initial step taken for performing the export process is to get a firm grasp on international markets and in-demand products around the globe. Products that are supposed to be exported are categorized as follows-
- Free- these products are exported without the need for permission from DGFT if the product will be booked under ITC (HS) and further follows the laws for importing in various countries. For example, spices, books, and apparel.
- Restricted- an exporter is obliged to get permission from the higher authorities in order to export local goods—a set of various export processes and conditions that should be opted for selling products on international boundaries. For example, sandalwood, medicines, and drugs.
- Prohibited- this kind of product cannot be approved for export under any situation—for example, birds and animals.
- Registering business-
In order to kick start an export business, you should establish a proprietary concern, a partnering firm, or a registered company, according to the procedures of standard export. You can further receive aid from various party experts too. They are known as Service Provider Networks.
- Open a bank account and PAN details
Current account authorization must be done for foreign payments to open a bank account. Furthermore, you should apply for a PAN card authorized by the Income Tax Department.
- Fetching IEC
Following the Foreign Trade Policy guidelines, it has become mandatory to fetch an IEC or Import Export Code to fulfill the purpose of exporting from India. IEC is known to be issued by DGFT via the official website.
- Avail Registration cum Membership Certificate or RCMC
Applying for RCMC depends on the product you want to export. Therefore, an Export Promotion Council should use RCMC. The purpose behind this is to get guidance and assistance from the government.
- Obtaining licenses and documents
It is necessary to acquire essential licenses and documents. This aspect extensively depends on the destination country as well as the product category.
- Acquiring documents for shipping
A few documents are required to be filed, which depends on the documents for shipping. Mandatory documents required are a packing list, a bill of lading, and the shipper’s letter of instruction.
To sum it up!
Export is supposed to be the lifeline of an economy. Therefore, it is imperative to conduct trade in a seamless format such that it can incur more profit for the country. To sum it up, the absolutely must step to follow are registering, documentation, and finally, exporting. So next time you step into the trade to establish your export business, make sure you use your acquired knowledge. Companies such as Kunal International India are successful in the industry as they follow a proper set of rules and work efficiently. So if you are planning to start your business do your research properly and follow the established examples.