EXPORT PROCEDURE

IN INDIA
-Subhan Kazi
Class:11 Commerce
Narayana E-Techno Jr College
CONTENTS TO BE EXAMINED IN THE
PRESENTATION:
◦ 1. What is Export and Exportable Products From India.
◦ 2. Export Documentation, Licensing, and Registration.
◦ 3. Export Finance, Insurance, Logistics and Transportation.
◦ 4. Export Promotion & Market.
◦ 5. Taking a product which is exported FROM India (APEDA).
◦ I. Introduction: Export Agricultural & Products.
◦ II. Licensing Procedure for the export of Agricultural & Processing Food products from India.
◦ III. Documents required for the Export of APEDA.
◦ IV. World Trade Organization (WTO) and its in APEDA.
◦ V. Conclusion.
 What is Export?

EXPORT PROCESS: EXPORT REQUIREMENTS:

Exporting goods from India involves several Exporters in India need to comply with various
steps, including product selection, market requirements, such as obtaining necessary licenses
research, documentation, customs procedures, and registrations, adhering to quality control and
and logistics. standards, and fulfilling customs procedures.
EXPORTABLE PRODUCTS FROM
INDIA:
- India is known for its diverse range of exportable products across
various industries and sectors. Some of the key export industries
and sectors in India. Exportable Products from India include:

1. Textiles and Apparel

2. Pharmaceuticals
3. Information Technology
4. Automotive
5. Agriculture and Food Products
6. Gems and Jewelry
7. Chemicals
8. Engineering Goods
9. Leather and Leather Products
10. Handicrafts

- These industries contribute significantly to India's export

economy and are in high demand in international markets. India's
exportable products are known for their quality, craftsmanship,
and competitive pricing.
Export Documentation:
Exporting products from India requires the following documentation:
DOCUMENT DESCRIPTION
Commercial Invoice A document that provides details about the exported goods, including the
quantity, value, and description.

Packing List A detailed list of the contents of each package, including the weight, dimensions,
and contents of each package.

Shipping List A document that serves as a customs declaration and provides information
about the exported goods, such as the port of loading, destination, and mode of
transport.

Billing of Lading A document issued by the shipping company that serves as a receipt for the
goods and provides evidence of the contract of carriage.

Certificate of Origin A document that certifies the country of origin of the exported goods and may
be required for customs clearance.

Insurance Certificate A document that provides evidence of insurance coverage for the exported
goods during transit.

Export License A document that authorizes or grants permission to conduct a specific export
transaction.

Customs Declaration A document that provides information about the exported goods and is required
for customs clearance.

Quality Control Certificates Certificates that verify the quality and compliance of the exported goods with
relevant standards and regulations.
 Export Licensing and Registration:

>Export License Approval: >Registration Process:

- Before exporting goods from India, businesses must obtain the necessary - Exporters in India are required to register with various government
export licenses from the relevant government authorities. The process agencies, such as the Directorate General of Foreign Trade (DGFT), to obtain
involves submitting the required documents and obtaining approval. an Import Export Code (IEC) and other necessary registrations. This ensures
compliance with export regulations and enables businesses to engage in
international trade.
EXPORT FINANCE AND INSURANCE:
Exporters in India have access to various finance and insurance options to support their international trade activities. These options provide financial assistance and
risk mitigation measures to ensure smooth and secure export transactions .
- Export Finance and Insurance Options :

OPTION DESCRIPTION
Export Credit Guarantee Corporation (ECGC) Provides export credit insurance to protect exporters against non-payment risks due to
commercial or political reasons.

Export-Import Bank of India (EXIM Bank) Offers financial assistance to Indian exporters through various schemes, including pre-shipment
and post-shipment credit, export bills rediscounting, and export credit insurance.

Foreign Currency Exchange Facilities Banks and authorized dealers provide foreign currency exchange services to facilitate
international trade transactions and manage foreign exchange risk.

Export Factoring Enables exporters to sell their accounts receivable to a factoring company, which provides
immediate cash flow and takes responsibility for collection from the buyers.

Export Credit Banks and financial institutions offer export credit facilities, including pre-shipment and post-
shipment credit, to finance the production and shipment of export goods.

Letter of Credit (LOC) A financial instrument issued by a bank that guarantees payment to the exporter upon
presentation of specified documents, providing assurance of payment and reducing payment
risks.

Export Insurance Insurance coverage for exporters to protect against risks such as non-payment, political
instability, transportation damage, and other trade-related risks.

Export Packaging Credit Financial assistance provided by banks to cover the cost of export packaging materials, ensuring
compliance with international packaging standards and facilitating safe transportation.
EXPORT PACKAGING AND LABELLING:
Packaging Requirements:
- Exported products from India must adhere to specific
packaging requirements to ensure safe and secure
transportation. Packaging should be durable, protect
the product from damage, and be suitable for the mode
of transportation.

Labelling Requirements:
-Exported products must also comply with labeling
requirements. Labels should include essential
information such as product name, country of origin,
manufacturer details, quantity, weight, and handling
instructions. Additionally, labels should be in the
language of the destination country.
EXPORT LOGISTICS AND
TRANSPORTATION:
Sea Fright:
- Sea freight is a popular option for exporting
products from India.
- It is cost-effective and suitable for large shipments.
- Shipping containers are used to transport goods by
cargo ships.

Rail Freight:
- Rail freight is another efficient option for
transporting goods.
- It is suitable for both domestic and international
shipments.
- Freight trains are used to transport goods in
containers or bulk.
EXPORT PROMOTION & MARKET:

2. Developing a
1. Identify Identify Target
Marketing
Target Markets Markets
Strategy

3. BUILD 4. ESTABLISH
BRAND DISTRIBUTIO
AWARENESS N CHANNELS
Lets take a product which is exported from India:

- We can take an example of Agricultural and Food Products

◦ Mentioned below is the procedure on how to export agricultural and food products:

◦ I. Introduction : Export Agricultural & Food Products.

◦ II. Licensing Procedure for the Export of Agricultural & Food Products
from India.
◦ III. Documents required for the Export of the Agricultural & food
products from India.
◦ IV. World Trade Organization (WTO) and its role in APEDA.
◦ V. Conclusion.
 Introduction: Export Agricultural & Food Products

-There has been an exponential growth in the -There are various schemes available for the
exportation of agricultural products. The export of agricultural products outside of India
government of India has taken many initiatives such as Participatory Guarantee System of India
to ease export in the agricultural sector. PGS, the Ministry of Agricultural.

With the introduction of the

Let us take an APEDA, an increase in the export of
example: Sugar, spices and buffalo meat are agricultural products has been found, and it has
among the largest exported products with the emphasized organic farming in the nation and a
contribution of 9%, 8% and 7% to 2021-22 reduction in the use of chemicals, pesticides, and
agriculture exports, respectively. industrial fertilizers (GMOs).
II. Licensing Procedure For The Export Of Agricultural & Processing
Food Products From India

1. Quality standard Certification:

• The agricultural and processed foods being exported from India must require to be registered for export purposes with certification from the
appropriate authority for the quality of the food products being exported from the country.
• Along with the certification from the authorized body for the the importing nation regarding the quality and quantity of goods being exported
from India to that country and fixing the legitimacy of the products being exported.

2. IEC and DGFT certification:

• The import-export code is provided to the businesses being transacted outside of India through the regulatory body, the Directorate General of
Foreign Trade (DGFT), Ministry of Commerce and Industry, Government of India.
• However, there are certain exceptions to the authorization the IEC license. It minimizes the cumbersome trading mechanism and eases the
export processes for the exporters.

3. GSP Licensing:
• The GSP stands for "Generalized System of Preferences," and it was established in 1971 by the United Nations Conference on Trade and
Development (UNCTAD) with the goal of bringing about change and lifting developing and underdeveloped countries.
• It is an autonomous commercial organization with the goal of developing, regulating tariffs, providing preferential treatment to developing and
underdeveloped nations, and making export markets easier to access than those of developed nations.
4. Issuance of Certificate of Origin:
The following are the organizations that are authorized for the
issuance of the Certificate of Origin (COO) under the
Generalized system of preferential tariff.
.

1. From the Export Inspection Council of India (EIC) ensures the quality and safety of the
products to be exported from the Indian Nation, with its various agencies for all the
exporting goods.
2. Directorate General of Foreign Trade (DGFT) through the regional offices set up through
the joint/deputy director general for all exporting goods.
3. DGFT is set up at prominent locations for the products being exported outside India for
the products developed by the EOUS or EPZs.
4. The marine export development authority at the regional offices is set up throughout the
nation for the export of marine products.
 APEDA
• The National Program for Organic Product (NPOP), in collaboration with the Agricultural and
Processed Food Export Authority, is the government agency, in charge of providing organic food
certification as well as framing rules and regulations for the establishment of organic food products.

FSSAI REGISTRATION
CERTIFICATE
• The FSSAI registration is governed by the Food Safety and Standards (FSS), Act, 2006, a single
national body that provides detailed information for the food grade, ensures the conformity of
standards for food and consumable products, and avoids ambiguity in the minds of merchants, traders,
and exporters looking to export their products from India.

IMPORT COUNTRY
AUTHORIZATION
• The exporter needs to have import permit from the country to which the products are being exported.
However, it differs for different types of products and importing nations. If the importing nation has a trade
agreement with India, such as a free trade agreement or a unilateral, bilateral, or multilateral agreement, the
exporter can get authorization very easily for the export of their products to such countries.
III. DOCUMENTS REQUIRED FOR THE EXPORT OF
APEDA

-Mentioned below are the documents required for the export of APEDA:
1. Company Registration Certificate: A certificate of incorporation, also known as a company registration
certificate, is a formal document that confirms a company's formation under the Companies Act 2013. It proves
that the company is officially registered with the Registrar of Companies.

2. The Company must have a bank account, GST registration, and PAN for the business
operation
3. APEDA registration certificate: APEDA provides rules, regulations, and guidelines to exporters on
various products as per the concerned country for export. The registration enhances the brand and helps exporters
in terms of brand publicity through advertisements, packaging development, database upgradation and surveys,
and so on.
 .
4. Import-Export Code (IEC) and DFGT registration:
An Importer Exporter Code is a 10-digit number issued by the Directorate General of Foreign Trade (DGFT), Ministry of
Commerce and Industry, Government of India. It is a unique identification number that is required by importers and
exporters to run a seamless business in international trade.
 .

◦ 5. Phytosanitary Certificates and related Documents:

- A phytosanitary certificate is a vital

document that is used to attest that
shipments of plants, plant products
and other regulated products are in
conformity with the phytosanitary
import and export requirements of a
country. This certificate ensures
smooth import and export of goods at
the trading borders.
 .

◦ 6. FSSAI License and NPOP authorizations:

-A Food Safety and Standards Authority of India License

or Registration is required for any food business in India
that manufactures, stores, transports, or distributes food.
Depending on the size and nature of the company, FSSAI
registration or license may be required.

-The foremost responsibility of FSSAI include the

development of 'Science-based Food Standards for
articles of food and food products and to regulate their
manufacture, storage, distribution, sale and import to
ensure availability of safe and wholesome food for human
consumption.
 .

7. Narcotics (Drug) Certifications:

- This programme provides integrated knowledge and broad perspectives required to effectively manage the
regulatory process for approval of new drugs in India.

8. Ministry of Agricultural Authorizations:

- Undertaking all possible measures to ensure timely and adequate supply of quality inputs and services such as
fertilizers, seeds, pesticides, agricultural implements, etc. Creating assured irrigation facilities to the farmers through
minor irrigation schemes so as to obtain maximum returns from their land.
 .

9. Customs Clearance: 10. Letter of Credit:

. .

-Customs clearance -A Letter of Credit is a

is the process of contractual commitment by
declaring goods to the foreign buyer's bank to
pay once the exporter ships the
Customs authorities goods and presents the
when entering or required documentation to the
leaving a country. exporter's bank as proof.

- Individuals or businesses
can this. Goods subject to - As a trade finance
customs clearance include tool, Letters of Credit
items that are being are designed to protect
imported or exported, as both exporters and
well as personal effects and
commercial shipments. importers.
 .

11. Quality Check of the goods to be exported:

- An important aspect about the goods to be exported is compulsory quality control and pre-shipment
inspection. For this purpose, Export Inspection Council (EIC) was set up by the Government of India
under Section 3 of the Export (Quality Control and Inspection) Act, 1963.

12. Bills Of Exchange:

- A "bill of exchange" is an instrument in writing containing an

unconditional order, signed by the maker, directing a certain
person to pay a certain sum of money only to, or to the order of, a
certain person or to the bearer of the instrument.
 13. Export Purchase Order:
- In international trade, a purchase order
can be defined as a type of commercial
document, which is generated by
importer in order to authorize an
import transaction. Importer prepares
and sends the purchase order to the
exporter, who is expected to check the
details.
- The format is shown on the right
 .

• A pro forma invoice is a quotation prepared in the format

13. of an invoice; it is the preferred method in the exporting
Proforma business. A quotation describes the product, states a price
for it, sets the time of shipment, and specifies the terms of
Invoice sale and terms of payment.

• Bill of Export form is very much similar to Shipping bill

except that a Bill of export is filed for export from SEZ
14. Bill Of unit by land whereas a Shipping Bill is filed for export
from SEZ unit by air/sea). The “Shipping Bill (SB)”
Export contains the information related to the consignments under
export.
*Additional Information:
How a Proforma Invoice and Bill of Export looks like?

Proforma Invoice Bill Of Export

15. Certification with the importing nations and finalization
of a deal with the importer before the start of export of
products:
IV. Overview of the World Trade Organization:

The World Trade Organization (WTO) plays

a pivotal role in promoting fair and
transparent international trade.

It provides a platform for member countries to negotiate

trade agreements, resolve disputes, and establish rules
and regulations that govern global trade.

Through its various committees and councils, the WTO

helps ensure that agricultural and processed food
exports from India receive fair treatment and market
access, fostering growth and economic development.
IV.A Role of WTO in Promoting APEDA:

The WTO plays a crucial role in promoting

agricultural and food exports by facilitating trade
negotiations, enforcing trade rules, and resolving
disputes.

It provides a framework for fair and transparent

trade practices, ensuring that India's agricultural
and processed food products have access to global
markets.

By complying with WTO regulations and leveraging the

resources provided by the organization, India can advance
its exports and boost its agricultural economy.
V. Conclusion:
◦ The export of agricultural products requires a lot of certification and
licensing procedures; once those processes are done and the products are
ready for export, the export will see a high rise in the value of the goods being
exported outside the country. If the agricultural products pass the organic
product criteria, which is in high demand throughout the world, that is going
to be of great benefit to the nation. However, the time-consuming process may
take a long time and create obstacles if procedures are not strictly followed.
Connect with us for any information regarding the export of your products
outside India and the compliance required for the same.