Step by Step Guide to Exporting from India

India is fast becoming a leading destination for global markets to source raw materials and manufactured goods. In 2021 alone, India recorded an export value of over $400 billion. The World Trade Organization also  ranks India as one of the top 20 global export countries. Furthermore, annual exports from India have continued to grow y-o-y. While there was a drop in 2020, driven by restrictions from the covid-19 pandemic, the annual export growth levels bounced back significantly in 2021. This fact affirms a growing demand for Indian products worldwide, driving the rise in India's rank on the competitive global export table. 

The reason for this is not far-fetched. First, goods are generally cheaper in Indian markets. In addition, India's government has implemented policies directed at providing export incentives to trade players. For example, India's recently released foreign trade policy provides export incentives like digitizing export processes and specific export rewards for domestically manufactured items.

If you are a trader or manufacturer and wish to expand your business footprint by entering export markets, you will need guidance on exporting from India. This article will provide an essential guide on how to go about exporting from India. It will also clarify the documents you need to scale the export process quickly.

Guidelines on Exporting from India

• Determine your type of exporter: An exporter is typically a seller who procures or produces the product that a buyer needs. To begin an exporting business, you need to be sure what category of exporter you want to be. There are several types of exporters. A merchant exporter procures the product from the manufacturer and then exports in his name. A manufacturer exporter produces the goods and exports the completed product. As any of these exporters, you can register your business as a legal entity, choosing the type that fits your long-term vision. Hence, you can choose to export as a sole proprietor, partnership, or limited liability company. Today, B2B platforms exist to simplify the export process for Indian-based manufacturers and suppliers. Doocan, a leading B2B export marketplace, accepts all forms of exporters. Thus, whether you are a manufacturer or a merchant exporter, you can join the waitlist to access opportunities for expanding your export footprint to the US.

• Obtain an IEC Code: An Import Export Code (IEC) is an identification number issued by the Indian Department of Commerce. A potential exporter must obtain this ten-digit code before starting any export or import business in India. Importantly, the code lasts for a lifetime and would be obtained once. To get the IEC, you must apply for the code from the official website of the Department of Commerce. You would be required to upload documents like your voter ID, your PAN card, or your electricity bill. Your IEC code will be automatically generated after uploading the documents. One must note that the IEC requirement only applies to Indians seeking to export from India. Foreign nationals do not have to obtain an IEC code.

• Apply for a Registration Cum Membership Certificate (RCMC): This certificate confirms that an exporter is registered with the relevant export promotion council. The certificate guarantees an exporter's access to the export incentives provided within Indian borders. It also authorizes the exportation of restricted items. Many digital export marketplaces require the RCMC to verify exporters' identities. Export promotion councils and commodity boards are the issuers of the RCMC. Applications can be made to these bodies to obtain the RCMC. There are provisions for online applications as well. Required documents include the Permanent Account Number (PAN) and a filled application form. 

• Identify buyers: India is a large market. However, to successfully export from India, you will need an importer who wants the product you are offering and can place an order for it. To find a buyer, registering with a trustworthy global B2B export marketplace can be a crucial step in exportation. These digital export marketplaces are global selling platforms connecting Indian suppliers to prospective buyers. With these trade platforms, you can export from India without owning a warehouse in other countries. You can also gain access to a large global customer base. However, it may be difficult to find an export marketplace that caters to all your needs and strongly understands the peculiarities of the Indian market. Hence, Doocan was created to provide Indian exporters with access to a wide range of buyers from the US market. With the competitiveness of the international trade market, this full-service export-import trade platform simplifies the process of connecting with buyers in the US market, one of the biggest importers of Indian supplies today. In addition, exporters are also free to determine terms like prices and minimum order quantity, and payment security is completely well regulated.

•   Conclude a Contract of Sale: A contract of sale is one of the most critical steps in exportation. Although many export orders are executed through proforma invoices, it is mainly advisable to use detailed legal contracts. A proforma invoice is a bill that describes the export order before the buyer makes payment. At the stage of the contract of sale, your export contract should clarify specifics like product specifications and quality, the total value of the order (in a specified currency), and insurance details. This clarification will ensure that trade risks are prevented. After the contract of sale is concluded, the export order is complete, and the buyer will make the payment. Platforms like Doocan also help to simplify this stage of exporting from India. Doocan acts as a trustee of the funds and holds them in escrow until successful delivery. This option helps to boost trust during the trade process and mitigates payment risks for both the exporter and importer.

• Register an AD code: An authorized dealer code is obtained from a bank where an exporter has a current account. This 14-digit code is printed on the bank's letterhead and is critical for custom clearance of the goods. It enables the exporter to perform foreign currency transactions by proving it is from legal trade. You should note that an exporter cannot obtain a shipping bill without this code. After acquiring the code, the exporter must register it with any airport or port they plan to use for international delivery. 

• Secure a logistics company: Typically, international deliveries are done by sea or air. Hence, it would help if you considered hiring a freight forwarding or logistics company to arrange delivery. For shipping by sea, exporters tend to select either a full container load or less than a container load, depending on the size of the consignment and time sensitivity. Air transportation is an alternative but is more expensive, although faster. Doocan simplifies this process by offering partnerships with exporters to support logistics and freight processes. Hence, for new and old exporters interested in exporting from India to the US, the process of international delivery is made easier through Doocan's support.

• Pre-shipment Inspection: This step is aimed at quality control. Pre-shipment inspection is when buyers inspect products to detect flaws and confirm quality and specifications before the product is shipped for export. For more specific products like garments, function tests are conducted by testing zippers and materials to determine whether they conform to the buyer's specifications. Many agencies provide inspection services within the Indian market. E-marketplaces can also provide inspection agencies to verify the quality and quantity of goods before they are shipped. 

• Customs Clearance: After the inspection report confirms the quantity and quality of the goods, the next step is to clear the goods with the Indian customs authorities. This clearing process involves the submission of a shipping bill. Other documents like the packing list and the Statutory Declaration Form (SDF) will be required upon application. As an exporter, you do not have to go through these processes alone. Doocan understands the significance of this stage of export. Beyond providing you with a readily available export market, it offers assistance with export processes like logistics and customs clearance.

Documents Required for Exporting from India

Many documents have been mentioned in this article. Most of them might seem foreign or confusing to you. However, this guide will provide clarification. Here are some documents you will be required to submit during the exportation process and what the documents mean: 

• Packing List: The packing list itemizes goods and specifications based on the export order. It includes details like the volume of the package and product specifications. The list is usually required during the clearance process. 

• Bill of Lading (BOL): The BOL is one of the most critical documents in the exportation process. It is a receipt issued by the carrier to the exporter. It confirms that the shipping company will pick up the goods and transport them to the destination address. The BOL contains details like the address of the exporter and receiver, shipping date, and package specifications. It confirms the existence of a carriage contract for the goods in question.

• Certificate of Origin: A certificate of origin is a document containing details on the country where the producer manufactured exported goods. It also contains details on product destination and specifications. This certificate is required for every form of international trade. It helps customs authorities determine whether one is permitted to import the goods or if they should be subjected to import duties. 

The benefits of exporting from India are numerous. International markets offer opportunities to diversify your sales, and you play a role in enhancing foreign direct investments for the economy. There are also several governmental benefits and support you can leverage. Whether you're seeking to export raw materials or manufactured products, you can easily access a growing market looking for quality and affordable options.

While this article has provided a significant guide on how to go about exporting from India, it is vital to conduct your research to determine the right products in high demand by importers. Undoubtedly, a leading export marketplace like Doocan significantly reduces your exportation challenges. Doocan will help you through the exportation journey, from finding a buyer to clearance at customs and receiving payments. Most importantly, payment security is guaranteed for exporters on Doocan, as purchase funds are stored in escrow and immediately released when goods are delivered. If you want to join the numerous Indian suppliers leveraging Doocan, join the waitlist and expand your business's global footprint.