1. What is Exports?
Exports refer to selling of goods or providing services across the borders, meaning that a person in another country should consume goods or services from India. In other words, the exported goods should cross the Indian borders and payment must be in foreign currency.Of course, there are exceptions to this rule. For example, there are certain transactions where goods do not cross the country and payment is also realized in Indian currency. Yet, they are deemed as exports.
2. How do I become an Exporter?
Very simple. First, identify a product or service that you can sell or provide to another person in another country.
Once this is done, procedural formalities can be done. You need to have the following to be called as an exporter:
- Choose the form of organization that you want to start. It could sole proprietorship, partnership, Limited Liability Partnership, Private Limited co, Public limited co etc.
- Obtain digital signature for the authorized signatory of your company.
- Import Export Code (IEC)
To apply for an IEC, you need to have Income Tax PAN, bank account with a scheduled bank, GST registration. Income tax PAN is needed both for you as individual, for your partners or directors as individuals and for the company that you started.
Apply online with all these documents in the DGFT portal and remit a fee of Rs.200. The print out of the application is your IE Code certificate.
- How do I choose a product or service for export?
Choice of product depends on several factors. Foremost are your knowledge about the product, availability and market for the product. Either you have the knowledge or you have someone in your team who is knowledgeable for the same. Next is the suitability of the product for export in its available form in India. For example, mango fruit has very good export potential. But many western countries frown on this fruit from India as many of them contain pesticide beyond the acceptable levels. Therefore, you should know what are the sanitary conditions acceptable to the importing country and compare it with what is available and what you can do about it.
- How do I choose a market for export?
Very simple, Go by statistics of export to the country. These are available in the Government of India website, ddgft.nic.in. If you want periodical alerts, you can also subscribe to Director General of Commercial Intelligence and Statistics (DGCIS).
Trade analytical tool is available through the Commerce Ministry, Government of India. This tool can be used to analyze the market trend of certain product. This is one of several initiatives proposed in the recent foreign trade policy of the Government of India.
Also become member of Linked in Groups for your product interest. You may get enquiries. But since this is online platform, it is better to conduct due diligence before jumping to full the order. Similarly, become a member of concerned Export promotion council for your product. They conduct periodical buyer seller meet, reverse buyer seller meet and are in a position to accumulate enquiries received by them and pass them to you.
- How much time would it take for me to become an exporter?
At the speed of your mind.
If you are ready with the knowledge of market and product, it would just take a week to be assigned an IE Code No. You are an exporter if you have this no.