Export Import Business Learning Guide
Export is definitely a lucrative business but also involves hard work and natural business instincts to run it successfully. If you are contemplating an idea of establishing an export oriented concern that will deal in goods or services, it is crucial to know some basic facts and details of the mechanism that runs this business.
The first and foremost step that is critical to this area is decision on the products and commodities you would be dealing in and then deciding upon the nature of the trade you would be interested in. There are primarily 3 kinds of export companies that form the core of this activity.
There are several statutory formalities that must be completed when you have decided to setup this business.
Executing the compulsory registration process required for exports with various government and regulatory agencies and obtaining :
- GSTIN wef 1st July 2017, [Old-Sales Tax]
- Central Excise Registration
- Import Export Code – IEC
- REGISTRATION CUM MEMBERSHIP CERTIFICATE- RCMC
It is always beneficial as you tend to source goods from domestic suppliers for processing or trading. You can get 100% reclaims and refunds of applicable GST amount.
Import Export Code –IEC
Obtaining IEC from Director General of Foreign Trade (DGFT) is mandatory for companies and organizations aspiring to enter into export and import. You will be allotted a Business Identification Number – BIN, which is based on PAN issued by IT authorities. These both ID codes form the core of all export transaction documentation. This registration must be requested in prescribed format and must be accompanied with all mandatory supportings detailing all office locations and branches of the organization.
Registering Cum Membership Certificate
It is advisable for you to get membership of applicable export promotion council – EPC having jurisdiction over the commodity you are dealing in. In case you are dealing in a product that does have an umbrella EPC, you should approach an EPC controlling you main activity premise or Federation Of Indian Export Organization – FIEO. Incase of multiple commodities you can get register with FIEO. This registration entitles you various export linked incentives and facilities.
After all the registration formalities have been completed and the product line decided upon, you need to go out and start prospecting for potential markets and buyers for your productions and items. There are several sources that you can avail to make a foray into international markets. Various channels you can avail include
- Trade / Industrial directories
- Websites of Buyers
- Export Promotion Councils
- Foreign Embassies in India
- Indian Embassies Abroad