India has been a strong export partner for a multitude of foreign countries for years. The greatest export to Europe and export to The USA from the country include jewelry, gems and precious metals. The other import exports from India are mineral fuels, mineral oils, vehicles, iron & steel, food products, cotton and what not! India also exports to other major countries like Canada, the UK, South Africa, Sri Lanka, France, Russia and so on.
When it comes to mode of export to The United Kingdom or any other foreign country, India usually prefers to air-freight. Export by air is usually great when you want a speedy procedure. It’s especially essential when you have to Export to Canada (or other countries) perishable or time-sensitive items. The post below offers a brief on how to Export to Sri Lanka or anywhere else in the world from India by air.
Obtain IEC & RCMC
The IEC code is mandatory when you are planning to establish your export business in India. You have to register with DGFT to attain the unique 10-digit code which will be issued against your PAN number.
Then, you will have to attain the RCMC (Registration cum Membership Certificate) from Export Promotion Councils. It will help you to enjoy certain concessions or benefits under the FTP 2015-20 protocol.
Select product & market
Zero on the items you wish to export to South Africa (or other countries) from India. It’s to note here that certain items will require special permission or license for export. Then, there is a list of items that are strictly prohibited for Export to Mauritius or any other place in the world. So, read those lists carefully before deciding on the goods to be exported. Go for items that you are knowledgeable about and would like to work with.
Do you want to export to France or the USA? Well, before selecting any market, conduct a comprehensive research on competition, market size, payment terms, quality requirements and other related parameters.
Look for potential buyers
You will be able to find buyers from different venues such as buyer-seller meets, trade fairs, B2B platforms, exhibitions and so on. Your overseas buyer may ask for a sampling of your export to his country, say export to Russia, to gauge the viability of your product.
Negotiate & set pricing
Now, you have to negotiate with buyers & set the pricing. While calculating the pricing, take into consideration all these factors:
- FOB charge
- CIF
- C & F
Procure goods after confirmation
After your order is confirmed, you will have to arrange the goods to be exported to your chosen overseas market/markets. Then, you have to pass them through quality inspection as per the standards stated by your foreign buyers.
Look for air-freight company
Now, you will have to arrange an air-freight company for the delivery of your export cargo. Don’t just settle with the first name you come across online- rather carry a comparative study on 4-5 potential names. Your focus should be on an experienced company like Quick Lift Logistix. Make sure to label and package your products properly before sending them for delivery
Go for Customs Clearance
You have to file a shipping bill for customs clearance of your export goods before sending them to your buyer. The customs department will ask you to submit certain documents to pass the shipping bill. These are:
- Airway Bill
- Commercial Invoice and packing list
- Shipping bill or bill of export
Submit documents to back
When you send your items for delivery, you will have to submit another set of documents to the bank to arrange payment from the foreign bank. The documents that you will need to submit here include:
- Bill of Exchange
- Invoice
- Letter of Credit
- Airway Bill
- Packing List
- Declaration under Foreign Exchange
- Inspection Certificate, if needed
- Certificate of Origin or GSP
The certificates or documents should be submitted to your bank within a maximum 21 days of the export delivery. According to FTP 2015-2020 standards, all the export invoices and contracts will be calculated in Indian rupees. The export proceeds will take around 9 months to realize.