How to start your export business in India

If you are an aspiring exporter or a manufacturer with a proven track record in the domestic market, and you are eager to explore the vast opportunities available in international markets, here are the basic steps to create an export-ready business. For inspiration and reasons to venture into the export business, please click this link to another article Unlocking Global Opportunities: Why Indian Manufacturers Should Consider Exporting

Regulatory compliance for an export business in India

1. Importer-Exporter Code:
   The Importer Exporter Code (IEC) is a 10-digit number issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, Government of India. This unique identification number is essential for importers and exporters to conduct smooth and compliant international trade operations. The steps required are:
   • Click on the link "Apply for IEC" in the DGFT website and register
   • Login with the new credentials, and follow the link "Apply for IEC".
   • Keep the company registration documents, proof of address, a cancelled cheque of the current bank account, a Class-3 Digital certificate ready for the registration purposes.
   • Click on "Start Fresh Application", enter information, attach digital certificate and make the payment, and you will get a receipt displayed.
   • You will recieve IEC certificate by email. Also, you can "Print IEC" under "IEC Profile Management".
2. Goods and Services Tax (GST) registration
   Exports of Goods and services and deemed as inter-state supplies and are treated as zero-rated in GST. The exporter can choose to export either under a bond/Letter of Undertaking without paying tax and claim a refund of the Input Tax Credit (ITC), or pay Integrated Goods and Services Tax (IGST) by utilizing ITC or in cash at the time of export and subsequently claim a refund of the IGST paid. For both these options, GST registration is a must.
   Now, the GST can be registered online in the GST Portal.
3. Authorized Dealer Code (AD Code)
   Authorized Dealer Code (AD Code) which is a numerical code which can be applied through your bank, linking your bank account with it. All the Export promotion benefits, subsidies and incentives will be directly deposited to this account. Documents required for the registration of AD code are:
   • Bank Certificate (as per Customs Public Notice No. 93/2020)
   • Company Pan card with seal and signature
   • IEC certificate with seal and signature
   • GST certificate with seal and signature
   • A cancelled cheque belonging to company\'s bank account
   • A Class-3 Digital certificate
   An AD code letter will be issued by the bank in the DGFT format once approved
4. ICEGATE registration
   AD Code Registration in ICEGATE Portal and generating DRN (Document Reference Number) and IRN (Invoice Reference Number) from the e-sanchit section. AD code registration can be completed in the Bank Account Management Section in the ICEGATE Portal.

Getting your business Export-ready

Ensuring your business is legally compliant for exporting is one challenge, but securing your first order and exceeding customer expectations to become their preferred choice among countless global sellers is another. If you’re ready to explore exporting, here are some steps to get started:

1. Market Research:
   Identify potential markets for your products. Consider factors such as demand, competition, and regulatory requirements. Researching through the databases provided by Ministry of Commerce and Industry will help you to select the target markets to start with.
2. Compliance and Regulations:
   Understand the legal and regulatory requirements for exporting, including customs procedures, tariffs, and product standards.
3. Logistics and Distribution:
   Plan the logistics of shipping your products. This includes choosing reliable shipping methods, understanding incoterms, and managing documentation. For more information on Incoterms and their impact on pricing, please refer to this article: .
4. Pricing Strategy:
   Develop a pricing strategy that considers additional costs such as packaging, transportation, insurance, and duties. To remain competitive in the global market, which lacks the tariff protections of the domestic market, manufacturers must overhaul their entire production and supply chain processes. This includes eliminating unnecessary costs and enhancing product quality and reliability to gain a competitive advantage. A successful pricing strategy involves more than simply adding product costs and additional expenses to determine the selling price. Instead, it requires carefully optimizing and modifying products and processes to achieve a competitive price, superior quality, and exceptional support that surpasses what competitors can offer.
5. Marketing and Promotion:
   Create an international marketing plan to promote your products in target markets. You can leverage digital marketing, participate in trade shows, establish partnerships with local distributors, or open your own office in the target market. It is beneficial to study successful international players in your industry across different countries within your target markets. By understanding their winning strategies, you can refine your own approach to capture your share of the market.
6. Government Schemes:
   Government of India, under Ministry of Commerce and Industry and others, has various trade promotions and schemes which exporters can get benefitted from. These schemes offer technical and financial support and benefits to Indian exporters. These are facilitated through Export Promotion Councils and other government bodies. Please find the list of Export Promotion Councils of India in the linked article, and take your membership if you have not already done so.
7. Seek Expert Advice:
   Consult with trade experts, export consultants, and government agencies that specialize in international trade. They can provide valuable insights and resources to help you succeed. You can connect with Indian consulates and embassies in your target markets for information which can be of assistance with your sales activities in those respective countries.

Even though the information mentioned above can act as a guideline, you should make sure to consult your shipping agent and export consultants before making the quotation of your product or before entering into any contract.