As per Foreign Trade Development & Regulation Act, export is defined as an act of taking out of India any goods by land, sea or air and with proper transaction of money. Just like any other business, the business of export is also a wide concept. You will need a step by step guide on how to start an export business:
- What to export: You must determine the economics of what you export. Take into account every detail while choosing your export product or commodity – logistics, profits, procurement, costs etc. All items are freely exportable except few items appearing in prohibited/ restricted list.
- Selection of markets: Adequate market research must be done taking into account FTP policy provisions and other useful information.
- Establish an organization: To start the export business, first a sole Proprietary concern/ Partnership firm/Company has to be set up as per procedure. Do not forget the branding.
- Open the bank account: A current account with a Bank authorized to deal in Foreign Exchange should be opened.
- Obtain a PAN number.
- Obtain Importer-Exporter Code (IEC) Number: An IEC is a 10 digit number which is mandatory for undertaking export/ import. Applicants can also apply for e-IEC on the DGFT website (http://dgft.gov.in/).
- Obtain registration cum membership certificate (RCMC): For availing authorization to import/ export or any other benefit or concession under FTP policy, and also to avail the services/ guidance, exporters are required to obtain RCMC granted by the concerned Export Promotion Councils/ FIEO/Commodity Boards/ Authorities.
- Finding Buyers: Trade fairs, buyer seller meets, exhibitions, B2B portals, websites are an effective tool to find buyers.