Until the late 90s, exporting was somewhat limited to large businesses with the resources to manage international trade. It required capital, global connections, and a deep understanding of regulatory procedures.
Today, things have changed. Even a small business or solo entrepreneur based in Bhubaneswar, Surat, or Kochi can sell products to someone sitting in Dubai, New York, or Berlin.
Whether you're in manufacturing, agriculture, or digital services, the global market is wide open.
However, for both established domestic businesses looking to expand internationally or someone completely new to the world of exports, the first few months can feel overwhelming.
You’ll need to set up your business for export, determine shipping, understand compliance requirements, and select the right partner for receiving international payments.
This guide shows the exact steps on how to export goods and services from India.
But before that, a few proud facts!
The world is already buying from India. You just need to tap into it.
Phase 1: Find Opportunity & Feasibility
1. Find Out What Product You Should Export
Choose a product that has good margins and is easy to source, store, and ship. It should have steady demand. Also, check for government restrictions or shelf-life issues before finalizing a product.
Make sure you can produce or source it consistently, meet quality standards, and handle any legal or compliance checks. It’s much easier to scale an export business when you start with a product you understand inside-out.
• Pick products that are scalable, not seasonal or erratic in supply
• Don’t chase 100% new ideas — start with what you can handle now
• Talk to local suppliers or producers for reliable sourcing options
2. Shortlist Target Markets (Based on Demand, Competition, Regulatory Ease)
From Step 1, you know your product is in demand in multiple countries. But here’s the deal: you can’t (and shouldn’t) target all markets at once, especially if you’re just starting out.
Let’s say your product is in demand in the UAE, Germany, and the US. While all three markets import regularly, the UAE is definitely easier to enter from India. Here’s why:
• Lower shipping costs
• Simpler documentation
• Fewer regulatory hurdles
On the other hand, Germany and the US are more lucrative, but they come with higher shipping costs and more complex regulations.
To make a smarter choice, use trade data tools like ITC Trademap, Export Genius, or the India Trade Portal to analyze:
• Import trends (based on HS code)
• Average price per unit
• Demand and competition in each market
Be careful of the "large-market blindness" trap — you might be tempted to go after big names like the US or UK just because the numbers look attractive. Instead, focus on what’s practical and manageable as you start building your export business.
3. Find Buyer Leads (Through Platforms, Agents, LinkedIn, Expos)
If your products and location are finalized, your next goal should be to attract buyers.
How do importers know and agree with importing your product?
There are a few ways of doing it:
You can open an account on B2B platforms like Alibaba, IndiaMART, ExportHub, or Global Sources. You can list your product and directly contact verified importers.
Face-to-face selling is the best one to date. Attend trade expos like IHGF Delhi Fair, SIAL, or Gulfood, depending on your product. These events attract global buyers looking for new suppliers.
You can also register with Export Promotion Councils (like EPCH, APEDA) or hire a sourcing agent to bridge the gap.
Another approach is cold outreach via LinkedIn or email. Research importers or distributors in your niche, check what volumes they usually buy, and pitch your offer clearly.
Keep a note of what buyers care about:
• Consistent supply
• Quality certification
• Competitive pricing
• Fast communication
If you can prove those from day one, you’re already ahead of most new exporters.
4. Send Samples, Get Feedback
Once you’ve found an interested buyer, they’ll likely ask for a sample. This is your first chance to prove your product quality, packaging, and professionalism.
Send the exact product you plan to supply in bulk. Avoid upgrading to impress. Buyers want consistency and what they hate most is lower quality than the sample.
Now, do you need documentation to export a sample from India?
• If the value of the sample is below ₹25,000 (roughly USD 300) and clearly marked “No Commercial Value,” you usually don’t need a shipping bill or any export license.
• If the value is higher or you're sending multiple units, you’ll need to set up basic documentation (explained in detail in Phase 2) like:
• Commercial Invoice (even if it says “No Charge”)
• Packing List
• Shipping Bill (filed via ICEGATE portal)
• AD Code registration with Customs (one-time process for all exporters)
• IEC (Import Export Code) — mandatory for all export shipments, including samples
Use international couriers like DHL, FedEx, or Aramex. These platforms have a reputation to help with documentation and customs clearance.
Once sent, follow up with the buyer to check if they received it, what feedback they have, and whether any improvements are needed.
• Collect buyer feedback to fine-tune packaging, pricing, or features
• Keep a record of courier time, cost, and customs experience
• Make sure your product meets labeling or safety norms of the destination country
5. Discuss Expected Pricing, Volume, Payment Terms
You have done the business math on paper.
For example, if you sell at ₹300/unit, subtract ₹180 for production, ₹40 for shipping, and ₹30 for duties, you’re left with ₹50 profit per unit.
If the buyer needs 1,000 units a month, that’s ₹50,000 profit per client. This cost is before overheads like marketing or agent commission.
It’s time to understand if your business math makes sense. Discuss what kind of pricing the buyer expects, what volume they’d need monthly or yearly, and how they prefer to pay (LC, TT, advance, etc.).
From here, you can back-calculate your cost structure. You’ll quickly see whether the structure holds up — or needs adjustment. Also, this stage helps filter serious buyers.
• Be transparent about MOQ (Minimum Order Quantity) and pricing tiers
• Ask how soon they’d place a test order if sampling goes well
• Check if they’re used to working with Indian suppliers
• Clarify payment protection (like advance %, LC types, or escrow)
Is it worth it? You will know!
You will have feedback, cost clarity, and buyer intent to decide if exporting this product to the chosen market is worth pursuing. If things feel shaky — like no buyer responses, too many compliance roadblocks, or unworkable pricing — you can either rework or restart.
It’s better to pivot early than to go all in on a model that won’t be profitable. Don’t skip this honest checkpoint.
Phase 2: Set Up Your Export Backend
Your research and analysis phase is done, at this point, you have to formally enter the:
1. Register Your Business
If you haven’t already registered your business, this is your first legal step before going global.
You can register as a Sole Proprietorship, Partnership, LLP, or Private Limited Company, depending on your team, capital, and long-term vision.
A registered business is compulsory for:
• Opening a current account for export transactions
• Applying for an Import Export Code (IEC)
• Signing contracts and getting paid legally
• Building trust with banks, buyers, and government bodies
You’ll need documents like PAN, Aadhaar, address proof, and incorporation or partnership deed based on your structure.
2. Apply for IEC (Import Export Code)
IEC is mandatory for anyone who wants to import or export goods from India. It's issued by the DGFT (Directorate General of Foreign Trade) and is your license to operate in global trade.
You can apply on the DGFT portal online. They require a registered PAN and business along with bank details and address proof.
• No IEC means no international trade and export payments
• You’ll receive a 10-digit code linked to your PAN
• It’s valid for a lifetime unless voluntarily surrendered or canceled
3. Open a Current Account for Export Transactions
You will need a current account under your business’s name to handle overseas transactions and getting payments through banks.
Some banks also help with forex services, pre-shipment credit, and FEMA (Foreign Exchange Management Act) compliance. Choose one familiar with export processes.
• Keep IEC, PAN, and business registration ready for account opening
• Some banks ask for a brief write-up on your business and trade plan
• Choose a bank with experience in dealing with exporters for smoother handling
(promote Karbon here)
4. Apply for RCMC (Registration-Cum-Membership Certificate) if Needed
RCMC isn’t mandatory for all exports.
If your product falls under any Export Promotion Council (EPC), you will need one to access government benefits under the Foreign Trade Policy.
For example, if you export garments, register with AEPC (Apparel Export Promotion Council). If you're into food products, go with APEDA.
Each EPC supports a specific category and offers access to verified buyer databases, trade fairs, and subsidy schemes.
RCMC is your ticket to export-linked incentives, schemes, and networking.
• There are over 30 EPCs — choose one based on your product type
• EPCs can request IEC, sample invoices, or product details during registration
• Once approved, you can participate in council-led delegations and international expos
If you're eligible for benefits like duty drawbacks, RoDTEP, or subsidised freight schemes, RCMC is a must.
5. Register on Government Portals (DGFT, ICEGATE, ECGC)
For every export shipment, you’ll need documents and clearances from different government systems. It’s better to register early on all the portals, so you’re not scrambling when a real order is ready.
Initial registration takes time since they have their predefined process, verification steps, and document requirements.
Here’s a few portals you should register on:
• DGFT (Directorate General of Foreign Trade): This is where you apply for and manage your IEC, track duty credit scrips, and access Foreign Trade Policy benefits.
• ICEGATE (Indian Customs Electronic Gateway): Used for e-filing shipping bills, tracking consignments, and customs clearance. You'll need this to export anything out of India.
• ECGC (Export Credit Guarantee Corporation): Helps protect you against payment defaults, political risks, and non-payment from foreign buyers by offering credit insurance.
Phase 3: Shipment Preparation & Execution
Buyers are ready. Your business is set. Now it's time to ship your order.
1. Finalize the Export Order (Purchase Order or Sales Contract)
Before dispatching any goods, you need a formal written agreement between you and the buyer. This can take the form of a Purchase Order (PO) issued by the buyer, or a Sales Contract prepared by you. Either one serves as legal proof of the transaction and defines the terms under which the export will take place.
The document should clearly mention:
• Product name and specifications (material, grade, size, model, etc.)
• Quantity and packaging requirements
• Price per unit and total order value
• Payment terms (advance, LC, TT, credit days)
• Delivery terms based on Incoterms (FOB, CIF, EXW, etc.)
• Agreed shipment date and destination port
• Dispute resolution mechanism, if applicable
Once finalized and signed, this document becomes the basis for initiating production or sourcing. You’ll also use it for coordinating with banks, filing customs documentation, and planning logistics.
2. Prepare the Export Documents (Based on Order and Country)
Each shipment requires numerous documents depending on the product type, destination country, and delivery terms. You’ll need these to clear customs, claim benefits, and get paid.
Some of the must-haves include:
• Commercial Invoice (details product, price, buyer info, and HS code)
• Packing List (lists weight, number of packages, and dimensions)
• Shipping Bill (customs declaration filed through ICEGATE)
• Bill of Lading / Airway Bill (issued by the shipping line or courier)
• Certificate of Origin (proves the product is made in India, required by many countries)
• Insurance Certificate (especially for CIF shipments)
• Quality or Phytosanitary Certificate (if exporting food, agri, or textile items)
• Fumigation Certificate (if required by buyer country or for wooden packaging)
Keep in mind:
Not every document is mandatory for each shipment. Always check with your CHA (Customs House Agent) and the buyer.
3. Book a Freight Forwarder or Shipping Line
Once documents are underway, you’ll need to plan physical movement. Unless you’re shipping under EXW (where the buyer arranges pickup), it's your responsibility to move goods to the destination.
Hire a reliable freight forwarder who can help with:
• Booking space on vessels or flights
• Coordinating pickup from your warehouse or factory
• Advising on best routes and cost-effective carriers
• Ensuring proper documentation and container loading
They will also issue the Bill of Lading or Airway Bill, which is crucial for claiming payment under LC or other banking channels.
4. Arrange Inspection (If Required)
Some buyers or countries demand third-party inspections to confirm the shipment meets agreed specs before dispatch.
Inspection could be:
• Pre-shipment inspection (PSI) arranged by the buyer
• Quality checks by SGS, Intertek, Bureau Veritas, or any global agency
• In-house checks (if you have your own QA team)
You’ll need to coordinate this before dispatch and ensure the inspection report is signed off by both parties. If this is a requirement for customs clearance at the buyer’s end, missing it may lead to rejections or penalties.
5. Clear Customs and Dispatch the Goods
Once packing is done and inspection (if any) is complete, it's time to move the shipment through Indian customs.
Steps to follow:
• File the Shipping Bill through your CHA on ICEGATE
• Attach IEC, AD Code, Commercial Invoice, and Packing List
• Submit any additional certificates required for the product
• Pay applicable export duties (if any) or claim duty drawback where eligible
• Once cleared, goods are handed over to the shipping line or courier
Track the shipment till it reaches the port or airport and ensure a signed copy of the Bill of Lading is collected.
Phase 4: Payment & Post-Shipment Compliance
Your shipment is on its way, and it’s time to get paid for this entire process. This phase focuses on ensuring you get paid, claim any applicable incentives, and stay compliant with post-shipment regulations. Let's walk through the steps to close the export loop.
1. Track Payment as per Agreed Terms
After the goods have been dispatched, make sure the payment is processed according to the terms set with your buyer. Whether it's advance payment, Letter of Credit (LC), or payment after delivery, you should stay updated to avoid delays.
• Follow Payment Schedule: Ensure payment is made as per the agreement, whether after shipment or through LC.
• Monitor Bank Transfers: Track wire transfers or drafts to ensure full payment and resolve any exchange issues.
• Check for Delays: Address payment delays promptly by communicating with the buyer or bank for quicker resolution.
2. Submit Documents to the Bank or Third-Party Platforms
When using an LC or third-party platform like PayPal or Karbon, you’ll need to send the right documents to get paid. This step is key to making sure your payment is processed smoothly and on time.
For an LC, you'll usually need to submit documents like the Commercial Invoice, Bill of Lading, and Packing List to the bank. These documents confirm that the terms of the agreement have been met.
• Documents for LC Payments: Submit the Commercial Invoice, Bill of Lading, Packing List, and Certificate of Origin to the bank. Make sure they match the LC terms exactly.
• Third-Party Platforms: For PayPal, Payoneer, or Karbon, upload required documents like invoices and shipment proofs.
• Export Document Verification: Banks and platforms will verify the accuracy of your documents. Ensure they are signed, stamped, and match the contract terms.
3. Claim Incentives & Refunds (If Applicable)
The Government of India offers several incentives and refunds to encourage and support exporters under the Foreign Trade Policy (FTP). These benefits can significantly reduce your costs and improve your profitability.
• Duty Drawback: Claim refunds on duties paid for materials used in exports.
• RoDTEP: Get refunds on taxes and duties incurred during manufacturing and export.
• Other Incentives: Access subsidies or benefits under Export Promotion Councils (EPCs) for specific sectors.
4. Update Records for Compliance
Once the payment is received and you have successfully claimed all incentives, you must update your records. This ensures everything complies for future audits or inspections.
Proper record-keeping is not just good practice but also a requirement under Indian export laws.
• Maintain Records: Keep invoices, shipping bills, contracts, and receipts for tax and compliance.
• File GST Returns: File returns for export sales; exports are zero-rated, but documentation is key.
• Reconcile Accounts: Ensure all costs and payments are tracked for easier audits and tax filing.
• Prepare for Audits: Keep records organized for potential Customs or tax authority checks.
Frequently Asked Questions (FAQs)
1. What is the Import Export Code (IEC), and why do I need it?
The Import Export Code (IEC) is a unique 10-digit number issued by the DGFT (Directorate General of Foreign Trade). It's mandatory for all businesses that want to import or export goods from India. Without an IEC, your business cannot conduct international trade or receive export payments. You can apply for it online through the DGFT portal, and it’s valid for a lifetime unless voluntarily surrendered or canceled.
2. How can I track international shipments from India?
Tracking international shipments can be done using shipping bills filed through ICEGATE (Indian Customs Electronic Gateway). You can also track shipments using couriers like DHL, FedEx, or Aramex, who often provide detailed tracking systems. Ensure that all export documentation (Commercial Invoice, Packing List, etc.) is in order to prevent delays.
3. What are Incoterms, and why are they important for exports?
Incoterms (International Commercial Terms) are standardized trade terms that define the responsibilities of buyers and sellers in international transactions. Common Incoterms include FOB (Free On Board), CIF (Cost, Insurance, and Freight), and EXW (Ex Works). Understanding these terms helps you clearly define the responsibilities for shipping, delivery, and customs clearance, reducing risks in the export process.
4. What documents do I need to export goods from India?
The key documents required to export goods from India include:
• Commercial Invoice
• Packing List
• Shipping Bill (filed via ICEGATE)
• Bill of Lading / Airway Bill
• Certificate of Origin (proof of Indian origin)
• Insurance Certificate
• Quality or Phytosanitary Certificate (for specific goods like food and agriculture)
• Fumigation Certificate (for certain types of packaging)
Each document is vital for customs clearance, getting paid, and ensuring a smooth export process.
5. How do I manage the risk of non-payment in international trade?
To mitigate the risk of non-payment, consider using payment methods such as Letter of Credit (LC) or escrow services. These provide assurance that payment will be made once the terms of the contract are fulfilled. Additionally, credit insurance from entities like ECGC (Export Credit Guarantee Corporation) can protect you from defaults and political risks. It's also important to research buyers thoroughly and establish clear payment terms upfront.
6. Can I claim export incentives or refunds?
Yes, the Government of India offers several incentives to exporters under the Foreign Trade Policy. Some common incentives include:
• Duty Drawback (refund of duties paid on exported goods)
• RoDTEP (Refund of Duties and Taxes on Export Products)
• Export Subsidies under specific Export Promotion Councils (EPCs)
These schemes can help reduce your costs and increase your profit margins. Ensure that you meet the eligibility criteria and file your claims promptly.
7. What is the role of a Customs House Agent (CHA)?
A Customs House Agent (CHA) is an authorized intermediary who assists exporters with the customs clearance process. They help ensure all documents are in order, file shipping bills, and liaise with customs authorities to prevent delays. Hiring a reliable CHA is crucial for smooth and compliant export transactions, especially when dealing with complex documentation and customs regulations.
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