how to start import export business

How to Start Export-Import Business in India

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If you are keen to explore the import export business and has the mindset to interact new buyers and sellers from the foreign market, then it is possibly the right time to jump into the business of import and export to make profits at a larger level. The Import export market is not a new market, rather the trading of goods is being carried out for centuries. For an instance, some country is having the abundant resources which other country has the demand to use it as their end product but doesn’t have the availability in their country, then they will import the product from your country and vice versa.

      how to start import export business

So, it is very important to know some of the technicalities and systems which will help you to get a clear insight of what an import/export business is and also it will help you to get an idea of How to Start an Import Export Business easily.

how to start import export business

To start any import/export business, the first one should be aware of its types, which are discussed here:

An Export Management Company or an EMC :

An Export Management Company (EMC) is one of its kind which helps any domestic business in handling their business. These domestic players may be either a manufacturer, distributor or a wholesaler, who is willing to export their product from the domestic market but are not aware of the procedure. They even don’t want to know any of the procedures as they give the work to an EMC to handle their materials, which involves many things, such as hiring the dealer network, invoicing, distributors and representatives, arranging the shipment, marketing, promotions, to name a few. They get paid either in the form of salary or as a commission.

An ETC or an Export Trading Company : 

An export trading company works in a different manner than an export management company. Instead of giving their work to an EMC, they hunt for the buyers, which are looking for the specific product present in their domestic market and export it directly, either earning a direct profit or working on a commission basis from the seller’s end.

Import and Export Merchant : 

An import/export merchant works differently in order to get profits. Becoming an import export business merchant means you are collecting material or product directly from a domestic manufacturer or a foreign manufacturer. This type of merchant does not specialize in any particular product line or doesn’t have any specific or clienteles. They just study the market, buys the product, repack it, and then ship it to the targeted market from their own, without getting any involvement of an EMC or an ETC. It helps them to earn all the profits in a much easier way, although an import and export merchant has to manage all the risks involved with his own.

Apart from these factors, one should have to take note of other things which play an important role in starting and carrying out business in the long run, these are : 

  • Import Export business License
  • Import/Export Duties (depends on article to article)
  • GST
  • LC Account in the bank
  • Selecting the Port
  • Selecting the type of transportation (by air or through cargo shipment)
  • Contacting the Logistics department

Last but not the least, doing an import export business requires a thorough study of the foreign market and their demands for a specific product, which helps a person earn a huge amount of profit in the short and long run also.

Vaibhav Sharma

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