Strategically, located near the strong trading countries of the world (China, Japan, and Bangladesh), India has big opportunities and competition being an exporter. When you being an Indian decide to start your Import Export business, you have to legally and strategically follow the rules that make the process easy and viable.
So, what is the first procedure to initiate business for Import Export India?
The very first thing any company needs before starting their own Import Export business in India is obtaining its ‘Import-Export Code’ from the Directorate General of Foreign Trade. The procedure to obtain an IE Code is quite simple; it needs you to have your company bank account along with the PAN details.
The above procedure will help you to start your own business of Export Import from India but to gain a practical base for running the business is very important. The different exporters India, who are successful today have first trained themselves under a professional before putting their foot forth for the Import Export India business.
Being an exporters India, you need to first decide upon the type of exporter, you are:
There are basically only two types of exporters, i.e., merchant exporter and manufacturer exporter. A merchant exporter is a trader, who is selling goods outside India whereas a manufacturer exporter is a company who manufactures goods on its own and further sells them outside India. Once you know your exporters India type, you can start initiating the commercial process.
Next, for successfully commencing the business of Export Import from India, the company needs to get registered with the ‘Export Promotional Council’ or ‘Commodity Board of India’. Being an Indian exporter entrepreneur, your company needs to mandatory registration with the particular product community in order to avail export benefits, if any. The exporters in India also need to obtain the inspection certificates before hiring any freight forwarder for their Import Export Business in India.
The other processes for starting a business of Import Export from India:
- Issuing a PI (exporter issues to the importer outside India)
- Issuing a commercial invoice (issued by the exporter to the importer)
- Serving proof of shipment via Airway bills
- Issuing bill of lading
- Written document issuance of ‘Bill of Exchange’ (payment terms)
- Issuing Certificate of Origin for Customs clearance
- Packing list
- Issuing Letter of Credit (LC) under international and domestic business transactions
We have precisely explained the Import Export business process with this blog. But, we personally emphasize training an entrepreneur with the on-field experience of Import Export business for making him confident and aware of the business process and strategies. To avail more information or tips about how to start the process of Import Export from India, you can contact on +91 9211066888