### Detailed Summary on How to Export

#### 1. Establishing an Organisation

To begin the export business, you must establish a business entity. This can be a sole Proprietary concern, Partnership firm, or Company. Choose an attractive name and design a logo for your business.

#### 2. Opening a Bank Account

Open a current account with a bank that is authorized to deal in foreign exchange. This is essential for handling international transactions.

#### 3. Obtaining Permanent Account Number (PAN)

Every exporter and importer in India must obtain a Permanent Account Number (PAN) from the Income Tax Department. This is a mandatory requirement.

#### 4. Obtaining Importer-Exporter Code (IEC) Number

According to the Foreign Trade Policy, obtaining an IEC is mandatory for export/import from India. You can apply online at [DGFT](http://www.dgft.gov.in) by filling out the application form ANF 2A, paying the application fee, and submitting the required documents.

#### 5. Registration cum Membership Certificate (RCMC)

For availing authorization to import/export and other benefits under the Foreign Trade Policy, exporters must obtain an RCMC from the relevant Export Promotion Councils, FIEO, Commodity Boards, or Authorities.

#### 6. Selection of Product

Choose the products you wish to export after studying export trends and ensuring that they are not on the prohibited or restricted list.

#### 7. Selection of Markets

Select overseas markets based on research regarding market size, competition, quality requirements, and payment terms. Export promotion agencies, Indian Missions abroad, and other resources can help gather information.

#### 8. Finding Buyers

Participate in trade fairs, buyer-seller meets, exhibitions, and use B2B portals and web browsing to find buyers. Export Promotion Councils (EPCs), Indian Missions abroad, and overseas chambers of commerce can also be helpful. Creating a multilingual website with product catalogues can aid in reaching international buyers.

#### 9. Sampling

Providing customized samples as demanded by foreign buyers can help secure export orders. The Foreign Trade Policy allows for the export of trade and technical samples of freely exportable items without any limit.

#### 10. Pricing/Costing

Product pricing should be competitive to attract buyers and promote sales. Calculate the price considering all expenses from sampling to realization of export proceeds, based on terms like Free on Board (FOB), Cost, Insurance & Freight (CIF), and Cost & Freight (C&F). An export costing sheet for each product is advisable to ensure profitability.

#### 11. Negotiation with Buyers

Negotiate terms with the buyers, considering their interest in the product, future prospects, and continuity in business. Reasonable allowances or discounts in price may be considered to secure deals.

#### 12. Covering Risks through ECGC

International trade involves risks such as non-payment by buyers or insolvency. These risks can be mitigated by obtaining an appropriate policy from Export Credit Guarantee Corporation Ltd (ECGC). If the buyer does not make an advance payment or open a letter of credit, it is advisable to procure a credit limit on the buyer from ECGC.

### Processing an Export Order

#### i. Confirmation of Order

Examine the export order carefully regarding items, specifications, payment conditions, packaging, and delivery schedule before confirming the order. Enter into a formal contract with the overseas buyer.

#### ii. Procurement of Goods

After confirming the export order, take immediate steps to procure or manufacture the goods as per the buyer’s requirements.

#### iii. Quality Control

Maintain high quality standards for export goods. Certain products like food, agriculture, and chemicals may require pre-shipment inspection. Foreign buyers may also specify their own standards and may require inspection by nominated agencies.

#### iv. Finance

Exporters are eligible for pre-shipment and post-shipment finance from commercial banks at concessional interest rates. Pre-shipment finance is granted against a confirmed order or letter of credit to meet working capital requirements. Post-shipment finance is given for the transit period and in cases of usance export bills, up to the notional due date.

#### v. Labeling, Packaging, Packing, and Marking

Label and package the export goods as per the buyer’s instructions. Good packaging and packing ensure the safety and standard of the cargo, ease of handling, and reduce shipping costs. Proper marking provides identification and information about the cargo.

#### vi. Insurance

Arrange marine insurance to cover risks of loss or damage to goods during transit. Generally, exporters arrange insurance for CIF contracts, while buyers obtain it for C&F and FOB contracts.

#### vii. Delivery

Adhere to the delivery schedule to ensure timely and efficient delivery. Proper planning is essential to avoid delays.

#### viii. Customs Procedures

Obtain a PAN-based Business Identification Number (BIN) from Customs and open a current account in a designated bank for crediting any drawback amount. For non-EDI, fill shipping bills in the prescribed format. For EDI, file declarations through Customs Service Centers and verify the generated checklist. Amendments in shipping bills can be made before or after generating the shipping bill number with the appropriate permissions.

#### ix. Customs House Agents

Exporters may use the services of licensed Customs House Agents for cargo clearance.

#### x. Documentation

Mandatory documents for export include the Bill of Lading/Airway Bill, Commercial Invoice cum Packing List, and Shipping Bill/Bill of Export. Additional documents like certificates of origin or inspection certificates may be required depending on the case.

#### xi. Submission of Documents to Bank

After shipment, present the documents to the bank within 21 days for onward dispatch to the foreign bank to arrange payment. The documents should be drawn under Collection/Purchase/Negotiation under L/C as applicable.

This detailed summary outlines the essential procedures and considerations for exporting goods from India, ensuring compliance with regulatory requirements and efficient management of the export process.