🌍 EXPORT ROADMAP — MILESTONE 1
How to Start Exporting from India: A Complete 12-Step Beginner-Friendly Guide
By CA Devesh Thakur
Exporting from India is not just a business opportunity — it is a contribution to India’s economic growth, global trade presence, and job creation. As a Chartered Accountant and export educator, my mission is to simplify international trade for every Indian entrepreneur.
This blog is part of my 6-Milestone Export Roadmap Series, and today we begin with Milestone 1: Setting up the Foundation for Your Export Business.
Whether you’re a student, trader, manufacturer, or aspiring entrepreneur — this guide gives you every essential step you must follow before your first shipment leaves India.
🧭 STEP 1: Choose the Right Business Structure
Your export journey begins with establishing a legal business entity. This structure determines your compliance requirements, bank documentation, liability, taxation, and credibility before international buyers.
Common structures for exporters:
| Business Type | Best For | Key Advantages |
| Sole Proprietorship | Beginners with small scale | Easy setup, minimal compliance |
| Partnership Firm | Family/Joint ownership | Shared capital & responsibilities |
| LLP (Limited Liability Partnership) | Professional exporters | Limited liability + flexibility |
| Private Limited Company | Serious long-term exporters | Global credibility, investor-friendly |
Export Tip: If you aim to build a brand or deal with large buyers, Pvt Ltd or LLP boosts global trust.
🏦 STEP 2: Open a Current Account with an Authorised Dealer (AD) Bank
All export payments come in foreign currency, and RBI authorizes only certain banks to handle such transactions — known as Authorised Dealer Category-I Banks.
You must open a Current Account in your business name.
Documents needed:
- PAN of the business
- Proof of business registration
- Address proof
- GST registration (if applicable)
- Cancelled cheque
Why this matters?
Export finance, inward remittances, bill discounting, and FEMA compliance all require an AD bank account.
🔑 STEP 3: Obtain Your IEC (Importer Exporter Code)
No exporter can ship goods outside India without an IEC.
It is issued by the DGFT (Directorate General of Foreign Trade) and is mandatory for:
- Customs clearance
- International payments
- Export incentives
- Shipping documentation
Key Facts:
- IEC is PAN-based.
- Lifetime validity.
- Apply online on DGFT portal using Aadhaar OTP.
IEC = Your ticket to global markets.
📦 STEP 4: Product Selection + ITC-HS Code Classification
Every export product must be correctly identified and classified under the ITC-HS (Indian Trade Classification – Harmonised System).
Why HS code matters:
- Determines customs duty, restrictions & compliance
- Required for shipping bill, invoice, certificates, inspection, pricing, etc.
- Helps verify whether your product is freely exportable, restricted, or prohibited
Structure of HS Code:
- First 2 digits → Chapter
- Next 2 → Heading
- Next 2 → Subheading
- Final 2 → Specific tariff line
Export Tip:
Incorrect HS code classification can delay shipments or cause penalties.
🌐 STEP 5: Conduct Market Research & Find Buyers
Once your product is finalized, the next step is to identify the right target countries & buyers.
Reliable sources for buyer identification:
- DGCIS Export Data
- Export Promotion Councils (EPCs)
- Indian embassies abroad
- Trade fairs/expos
- Global B2B portals: Alibaba, IndiaMART, Global Sources, TradeIndia
- Social platforms: LinkedIn outreach, Instagram marketing
Research Points:
- Country demand
- Competitor pricing
- Logistics feasibility
- Import regulations of target country
Good research = Higher success rate.
🧪 STEP 6: Samples, Pricing Strategy & Incoterms 2020
International buyers usually request samples before confirming the order. Maintain consistent quality, packaging, and branding even for samples.
Export Pricing Must Include:
- Cost of production
- Packaging
- Inland transport
- CHA charges
- Freight (Air/Sea)
- Insurance
- Banking charges
- Commission (if any)
INCOTERMS 2020 — The Language of Global Trade
Incoterms define responsibility for cost, risk, and logistics between buyer and seller.
Commonly used:
- FOB (Free on Board) – Seller responsible till cargo is loaded on ship
- CIF (Cost Insurance Freight) – Seller handles freight + insurance till destination port
- DAP/DDP – Seller handles almost everything till buyer’s premises
Choosing the right Incoterm protects your profit margin.
🛡️ STEP 7: Secure Yourself with ECGC Risk Cover
Exporting involves risks like:
- Buyer default
- Country political/economic instability
- Payment delays
To protect exporters, the Export Credit Guarantee Corporation (ECGC) provides insurance:
- Standard Policy
- Shipment Policy
- Buyer-wise policies
- Whole turnover post-shipment insurance
This is essential for new exporters to avoid financial shocks.
📄 STEP 8: Prepare Mandatory Export Documentation
Export documents are the backbone of international trade. Accuracy is non-negotiable.
Key Mandatory Documents:
- Commercial Invoice
- Packing List
- Shipping Bill
- Bill of Lading (BL)/Airway Bill (AWB)
- Certificate of Origin (CoO)
- Insurance Certificate
- Inspection Certificate (if required)
- Letter of Credit (LC) or Bill of Exchange
Mistakes in documentation can stop your cargo at customs — so always double-check.
🚢 STEP 9: Hire a Freight Forwarder & CHA
A Freight Forwarder simplifies your logistics.
They help with:
- Booking containers
- Air/Sea freight
- Warehousing
- International routing
- Customs coordination
- Documentation & packaging advice
A CHA (Customs House Agent) handles customs clearance, HS code compliance, and regulatory filings.
Both are crucial partners in your export success.
💰 STEP 10: Understand Export Finance (Pre & Post Shipment)
Export finance helps you maintain cash flow until payment arrives from the foreign buyer.
1. Pre-Shipment Finance (Packing Credit)
For:
- Raw materials
- Packaging
- Production
- Labour
2. Post-Shipment Finance
For:
- Bill discounting
- Negotiation under LC
- Export bills purchase
Banks offer lower interest rates for exporters as per RBI guidelines.
📦 STEP 11: Export Packaging & Labelling Standards
Export packaging is not normal packaging — it must withstand:
- Long-distance transportation
- Moisture
- Handling pressure
- International climate conditions
Labels must include:
- Shipper & consignee details
- Country of origin
- HS code
- Handling instructions
- Weight & dimensions
Tip: Poor packaging = cargo damage = claim disputes.
🇮🇳 STEP 12: Know the Export Promotion Benefits
Indian exporters receive multiple incentives and support:
Export Promotion Councils (EPCs)
There are 27 councils, each supporting a specific product sector.
RCMC Registration
Mandatory to avail EPC benefits.
Government Schemes:
- MAI Scheme (Market Access Initiative)
- TMA (Transport and Marketing Assistance)
- Export incentives for e-commerce exports up to ₹10 lakh value
These schemes reduce overall cost and improve competitiveness.
🧾 TABLE: Full Forms of Key Export Terms
| Short Form | Full Form |
| IEC | Importer Exporter Code |
| DGFT | Directorate General of Foreign Trade |
| HS Code | Harmonised System Code |
| ITC-HS | Indian Trade Classification – Harmonised System |
| DGCIS | Directorate General of Commercial Intelligence & Statistics |
| EPC | Export Promotion Council |
| CHA | Customs House Agent |
| FOB | Free On Board |
| CIF | Cost Insurance Freight |
| LC | Letter of Credit |
| BL / B/L | Bill of Lading |
| AWB | Airway Bill |
| CoO | Certificate of Origin |
| ECGC | Export Credit Guarantee Corporation |
| AD Bank | Authorised Dealer Bank |
| RCMC | Registration Cum Membership Certificate |
| MAI | Market Access Initiative |
🤝 Connect With Me
I, CA Devesh Thakur, have started this initiative to simplify exporting for Indians who wish to go global.
If you wish to learn exports, follow updates, or reach out for guidance, connect with me:
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🔗 LinkedIn
🔗 YouTube
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