An export business is a connected system. Registration gives it a legal identity, documents keep transactions and customs moving, pricing supports profitability, and logistics gets the goods to the buyer. If one part is weak, the entire export process can stall. This guide follows six milestones—from export readiness and finding buyers to completing an international shipment.
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Milestone 1: Build Your Export Business Foundation
Choose a business structure and complete registrations
Start by choosing a legal form for the business. Options include a proprietorship, partnership, Limited Liability Partnership (LLP), One Person Company (OPC), or private limited company. A sole proprietorship or OPC may suit an individual starting out, while an LLP or private limited company may work better when there is a team.
Open a current account with an Authorised Dealer (AD) bank so export proceeds can be received in foreign currency. You will also need an Importer Exporter Code (IEC), which is PAN-based and obtained through the Directorate General of Foreign Trade (DGFT) website.
Check the product’s export policy and HS code
The video notes that products are generally freely exportable from India, except those classified as restricted or prohibited. Before approaching buyers, check the policy for your product.
Each product has an eight-digit HS code. That classification helps determine the applicable export policy, customs requirements, documentation and restrictions. The code should be checked against the product details rather than selected by guesswork.
Research markets and look for buyers
Use export data, Export Promotion Councils, trade fairs and exhibitions to investigate potential markets and buyers. The video also mentions DGCI&S data as one source for export market research.
Before sending samples or quoting a price, understand the market and the buyer’s requirements. A sample may help the buyer assess product quality before placing an order.
Price the product and agree on delivery terms
Build the export price by considering the costs that arise from sampling through payment realization. Depending on the transaction, these may include:
- Raw materials, labour and overheads
- Export packaging and inland transport
- Customs and logistics costs
- Freight and insurance, where applicable
- Bank charges and ECGC premium
The video highlights Incoterms such as FOB and CIF. These terms help define the buyer’s and seller’s responsibilities and affect the costs included in the quotation. The later pricing section also mentions DAP and DDP.
ECGC policies may help protect exporters against buyer default and country risk. Consider the relevant coverage as part of assessing the transaction.
Prepare the required export documents
Documents affect both customs clearance and payment. The video lists documents that may be needed, depending on the product, shipment and buyer’s requirements:
- Commercial invoice
- Packing list
- Shipping bill or bill of export
- Bill of lading for sea freight, or airway bill for air freight
- Certificate of Origin
- Letter of Credit or bill of exchange
- Inspection certificate, where required
- Phytosanitary certificate for agricultural exports
A freight forwarder and Customs House Agent (CHA) can assist with freight, warehousing, customs handling, packaging and documentation. The video also mentions pre-shipment packing credit for costs such as raw materials, labour and packaging, and post-shipment finance of up to 90% of invoice value.
Package goods for international transit
Export packaging should be strong and suitable for the shipment. The video calls for moisture-proof and tamper-proof packaging, with labels that include details such as the shipper’s mark and country of origin.
Explore export promotion support
The video refers to Export Promotion Councils (EPCs), Registration-cum-Membership Certificates (RCMC), the MAI scheme and e-commerce export hubs. It also mentions an increase in the value threshold for e-commerce exports to ₹10 lakh. Check the applicable scheme details and eligibility before relying on a benefit.
Milestone 2: Understand the Main Export Documents
Commercial invoice and packing list
The commercial invoice records the product, price and transaction details. The packing list sets out the shipment quantity, weight and measurements. Both are important for customs processing.
Shipping bill or bill of export
The shipping bill is a primary export customs document. The video explains that it is generated through ICEGATE and is required for a shipment to leave India.
Bill of lading or airway bill
These documents provide evidence of loading and carriage:
- A Bill of Lading (B/L) is used for a sea shipment.
- An Airway Bill (AWB) is used for an air shipment.
Certificate of Origin
For some Free Trade Agreement (FTA) or Preferential Trade Agreement (PTA) routes, a Certificate of Origin may help the buyer claim a duty benefit in the destination country, subject to the relevant rules.
Payment and inspection documents
A Letter of Credit (LC) can provide payment security, while a bill of exchange records the exporter’s written instruction for the buyer to pay a specified amount through the banking process.
Pre-shipment inspection may be required in some cases, including certain food, pharmaceutical, chemical or high-value exports. The video also identifies a phytosanitary certificate as mandatory for agricultural exports.
Milestone 3: Follow the Customs and Logistics Process
Export customs clearance
The video describes the customs process in these stages:
- Obtain the PAN-based Business Identification Number (BIN) for customs.
- File the shipping bill electronically through the EDI system, usually with the help of a CHA or freight forwarder.
- Complete customs examination or sampling if required. Customs may check the goods, quality and accuracy of the declaration.
- Receive the Let Export Order (LEO). This is the official customs clearance for export.
- Load the cargo and receive the relevant transport document, such as a bill of lading or airway bill.
The six stages of international logistics
The shipment then moves through a broader logistics chain:
- Export haulage: Goods travel from the factory to the forwarder’s warehouse or another designated point.
- Export customs clearance: Documents and goods are checked, and the LEO is issued if the shipment meets requirements.
- Origin handling: Cargo is sorted, packed or stuffed into a container, sealed and moved to the port or airport for loading.
- International carriage: The cargo travels by vessel or aircraft.
- Import customs clearance: Customs in the buyer’s country checks the shipment after arrival.
- Destination handling and import haulage: The cargo is unloaded, sorted and moved by truck from the destination warehouse to the buyer’s address.
Milestone 4: Find Export Buyers
Select a target market
Choose a target country by assessing:
- Market size and demand
- Competition
- Payment terms and buyer risk
- Quality standards
- Product-specific requirements
The video suggests using DGCI&S export data, Export Promotion Councils, Indian missions abroad and information about FTA or PTA opportunities. It gives leather goods as an example of a product for which the EU and US may be relevant markets.
Use several buyer-finding channels
Finding buyers takes consistent outreach. The video recommends:
- International B2B platforms such as Alibaba.com, IndiaMART International and ExportersIndia
- Trade fairs and exhibitions, attending as both a buyer and a supplier
- Buyer-seller meets organised by Export Promotion Councils
- Direct online searches for importers, wholesalers and distributors in the target country
It names events such as Dubai Expo and India International Garment Fair (IIGF), and mentions the Export Promotion Council for Handicrafts (EPCH) for handicraft exporters.
When contacting a prospective buyer, send a clear introduction with your product catalogue, pricing, shipping options, certifications and sample policy. The HS code and product description should be accurate and consistent with the offer.
Milestone 5: Calculate Export Prices and Build Buyer Confidence
Include the full cost of fulfilling the order
A workable export price should account for costs from sampling through realization of the payment. The video’s pricing formula includes:
- Base cost: raw materials, labour and overheads
- Export costs and packaging
- Inland transport and CHA charges
- Air or sea freight
- Insurance when quoting CIF
- Banking charges
- ECGC premium
- Profit margin
The video suggests adding a profit margin of around 10% to 30%. The appropriate margin depends on the product, market, competition and cost structure.
Choose Incoterms that match the transaction and the parties’ responsibilities. The video names FOB, CIF, DAP and DDP as examples. Since each term affects the seller’s costs and obligations, make sure the quotation states the agreed term clearly.
Verify the HS code
Search the product name or HS code through ICEGATE or DGFT resources. The video explains that the classification is broken into a chapter, heading, subheading and tariff line. Confirm that the classification matches the actual product, since it influences the applicable policy and documentation.
Make samples and payment terms credible
Use good-quality packaging for samples, include your logo, and offer fast shipping or customisation where needed. Clear payment terms can help establish confidence between buyer and seller.
For a new buyer, the video suggests considering an advance with the balance payable before shipment. It mentions LCs for larger orders and PayPal or Stripe for e-commerce exports. Avoid offering 100% credit unless the buyer has been verified.
A flexible first order may also reduce the buyer’s hesitation. For example, if the usual minimum order quantity is 200 units, you could consider starting a new buyer at 50 units. Where possible, offer suitable delivery-term options such as FOB or CIF.
Milestone 6: Move from Purchase Order to Shipment
The video closes with a practical example: a product with HS code 691390 being shipped to Germany on FOB Mumbai terms, with 30% advance and the remaining 70% payable before shipment. The example illustrates the workflow; the requirements for a real transaction depend on its product, route and agreed terms.
1. Review and confirm the purchase order
The buyer’s purchase order (PO) should set out the product details, quantity, price, Incoterm, delivery timeline, packaging standards and inspection requirements. Confirm the PO by email before proceeding.
2. Issue a pro forma invoice and collect the advance
Prepare a pro forma invoice (PI) showing:
- HS code and product description
- Unit price and total order value
- Payment and shipping terms
- Delivery period
- Advance payment request
The PI records the proposed transaction and payment terms. In the example, the exporter receives a 30% advance through a telegraphic transfer, SWIFT payment or remittance to the current account. For e-commerce exports, the video also mentions PayPal.
The bank may issue a Foreign Inward Remittance Advice (FIRA) for the payment.
3. Produce, customise and inspect the goods
Make the goods according to the buyer’s requirements. These might include a specific colour, branding, labelling, box or carton, or fragile packaging.
Carry out a quality check. If the buyer requires pre-shipment inspection, this may include checking packaging strength, drop-test performance, weight and dimensions. An inspection certificate may be issued where required.
4. Prepare the shipment documents
Prepare the applicable documents, including the commercial invoice, packing list and Certificate of Origin. Depending on the goods and buyer’s request, the shipment may also require insurance for CIF terms, an MSDS for chemicals, or a phytosanitary certificate for agricultural products.
5. Coordinate the freight forwarder and CHA
The freight forwarder may book vessel space, arrange factory pickup, coordinate customs handling, manage warehousing and container stuffing, and support the transport documentation.
Send the shipment documents to the CHA for filing. The video describes filing the shipping bill on ICEGATE with the invoice, packing list, IEC, GST details and LUT or bond details where applicable. The system then generates the shipping bill number.
6. Complete customs examination and receive the LEO
Customs may inspect the goods, labels and HS code, and may take a sample. If the goods and declarations are in order, customs issues the LEO. In the video, this is described as the official clearance signal for export.
7. Load the cargo and receive the bill of lading
After the goods are stuffed into the container and loaded onto the vessel, the carrier issues the bill of lading. It records information such as the shipper, consignee, notified party, vessel, ports of loading and discharge, container number and seal number.
8. Collect the balance and send the documents
Under the example’s payment terms, collect the remaining 70% before shipment. Send the buyer scanned copies of the applicable documents—such as the invoice, packing list, bill of lading, Certificate of Origin and insurance document, if relevant—so the buyer can arrange payment and import clearance.
After the payment is received, the bank may issue a Bank Realisation Certificate (BRC). The video also describes couriering the required documents to the buyer through a service such as DHL or FedEx.
9. Buyer clears the goods and receives the shipment
The buyer uses the documents to complete import customs clearance, pays the applicable duties and arranges release of the cargo. The shipment is then delivered to the buyer.
A Practical Export Checklist
Before starting an order, confirm that you have:
- A registered business structure, PAN and IEC
- A current account with an Authorised Dealer bank
- The correct product classification and export policy
- A target market and a plan for reaching buyers
- A complete cost-based quotation and agreed Incoterms
- A payment plan suitable for the buyer and order
- The required invoice, packing, customs and transport documents
- Suitable export packaging and labels
- A freight forwarder and CHA for shipment coordination
- A clear process for inspection, payment realization and delivery
Exporting is a sequence of connected decisions: registration, market research, pricing, buyer communication, documentation, customs clearance and logistics. Working through each milestone in order helps the exporter understand what needs to happen before the goods leave India and how the buyer will receive them.
