To start the export business, first a sole Proprietary concern/ Partnership firm/Company has to be set up as per procedure with an attractive name and logo.
An account to be opened in a Bank which is authorized to deal in Foreign Exchange
It is necessary for every exporter and importer to obtain a Permanent Account Number (PAN) from the Income Tax Department.
A 10-digit Importer-Exporter Code (IEC) number is compulsory for undertaking export/import. Application for obtaining IEC Number can be submitted to Regional authority of DGFT. http://220.127.116.11:8080/dgftiec/IEClogin.jsp
Filling of Application for GST Registration https://reg.gst.gov.in/registration/
Certificate of Origin is an instrument which establishes evidence on origin of goods imported into any country. These certificates are essential for exporters to prove where their goods come from and therefore stake their claim to whatever benefits goods of Indian origin may be eligible for in the country of exports. You may refer to the link to find out about institutions providing the Certificate of origin:http://dgft.gov.in/exim/2000/download/Appe&ANF/4C.pdf
Registration cum membership certificate (RCMC) is issued by Export Promotion Councils/Commodity board/Development authority or other competent authority as prescribed in FTP 2015-20. Any firm applying for an authorization to import/export or avail any other benefits / concession under FTP is required to furnish valid RCMC.http://dgftcom.nic.in/ercmc/ercmc_downloads.htm
Product selection can be done by undertaking the following considerations - detailed export statistics; direction of export of product; export trend of the identified product; best exportables products; and there should not be any restriction on export of this product
An overseas market should be selected after research covering market size, competition, payment terms etc. Exporters can also evaluate the markets based on the export benefits available for few countries under the FTP. Export promotion agencies, Indian Missions abroad, amongst others might be helpful in gathering information.
Technical market requirements refer to standards, technical regulations, SPS measures and conformity assessment procedures. This differs from country to country.
For fixing export price, the following elements should be taken into account - cost of manufactured product; cost of packing individually or in bulk; cost of financing; cost of ECGC cover; cost of expenses incurred on promoting / booking of order; cost of documentation; cost of transport to the port including freight handling and other expenses; cost of taxes, duties, levies etc. if any; and profit margin.On total of all above the elements Freight on Board [FOB] export price will be reached. For Cost Insurance Freight [CIF] price cost of freight from the port of export to the port destination and the cost of insurance has to be added in FOB.
Involvement in trade fairs, exhibitions, buyer seller meets, B2B portals, are an effective route to market. Export promotion councils, Indian Missions abroad, overseas chambers of commerce are helpful. Creating multilingual Website with product catalogue, price, payment terms and other related information would also help.
After having identified the buyer, the next step is to determine the buyer’s interest in the product, future prospects, demand for giving reasonable allowance/discount in price, etc. may be considered.
International trade involves payment risks due to buyer/ country insolvency. These risks can be covered by an appropriate Policy from Export Credit Guarantee Corporation Ltd (ECGC).