Whether you want to export from India or import into India, this guide breaks the whole process into clear, practical steps. I’ll cover registration, product classification, documents, customs, taxes, shipping terms, payments, and a handy checklist so you can act confidently.
Quick overview (what you must know first)
- You must have an Importer–Exporter Code (IEC) to import or export in India — that’s the basic registration for international trade. Directorate General of Foreign Trade
- You’ll work with HS (Harmonized System) codes to classify your product, and those determine duty, restrictions and paperwork. Use the Indian Trade Portal to find the right ITC-HS code.
Step-by-step process (exporter’s flow) — 12 easy steps
1. Market research & compliance check
- Validate demand, identify buyers, check competitor prices and packaging standards.
- Check product-specific regulations (SPS, quality, certifications — e.g., FSSAI for food). Use trade portals and target-country rules.
2. Classify your product (HS / ITC-HS code)
- Find the 2–6 digit HS code on the Indian Trade Portal — this decides duty, export incentives, and any restrictions.
3. Register: Get your IEC (Importer–Exporter Code)
- Apply online through DGFT — PAN, bank details and address proof are required. IEC is mandatory for all import/export activities.
4. Decide export route & commercial terms
- Pick Incoterms (EXW, FOB, CIF, etc.) to define who pays for freight, insurance, and who bears the risk. Use ICC Incoterms rules as your reference.
5. Agree on contract & payment terms with buyer
- Decide payment mode: Letter of Credit (LC), advance payment, documentary collection, or open account. LC is safest but costlier. Put delivery terms, quality, lead time, and penalties in the contract.
6. Prepare documents (core set)
Mandatory export documents typically include: Commercial Invoice, Packing List, Bill of Lading / Airway Bill, Shipping Bill (for customs), and any certificates (origin, health, quality). These are the core documents that customs and your buyer will expect.
7. Apply for export incentives/authorisations (if eligible)
- Claim benefits like RoDTEP or others by following DGFT rules if your product and exporter status qualify (check DGFT/Indian Trade Portal for scheme details)
8. File shipping bill & customs clearance (electronic filing)
- File Shipping Bill / Shipping documentation electronically (ICEGATE/Customs). The Customs Act requires electronic entry and filing of shipping bills for export. Tax Portal
9. Book transport, arrange packing & insurance
- Pack as per buyer and carrier rules, arrange transport and marine/air insurance (if not buyer’s responsibility per Incoterm).
10. Goods boarded & obtain export docs
- Carrier issues Bill of Lading / Airway Bill once goods are on board — send originals (or BL copy) to buyer/bank as per agreement.
11. Post-shipment compliance & claims
- File for incentives/refunds (RoDTEP, GST refunds) and upload documents to ICEGATE/DGFT as required. Track payment receipts and reconcile.
12. Follow up: logistics, warranty & after-sales
- Track delivery, address buyer queries, maintain records for audits (2–3 years typically) and manage returns if any.
Step-by-step process (importer’s flow) — quick summary
- Find supplier & agree terms (use Incoterms). ICC – International Chamber of Commerce
- Place order, arrange payment (LC or other).
- Receive Bill of Lading / Airway Bill and shipping docs.
- File Bill of Entry with Customs, pay duties/IGST (if applicable) and clear goods.
- Arrange local delivery and post-import compliance (GST filings, Eway bill if moving interstate).
Documents checklist (export & import essentials)
- Commercial Invoice (with HS code, value, currency).
- Packing List
- Bill of Lading / Airway Bill (carrier document)
- Shipping Bill (export) / Bill of Entry (import) — filed electronically.
- Certificate of Origin (if buyer/FTA needs it)
- Insurance Certificate (if seller covers insurance per Incoterm)
- Any licenses, sanitary/phyto certificates, testing reports
Taxes & refunds: exports are zero-rated (GST) — short note
Under GST law, exports are treated as a zero-rated supply. Exporters can either (a) export under Letter of Undertaking (LUT)/bond without paying IGST and later claim refund of input tax credit, or (b) pay IGST and claim refund. File LUT on the GST portal before exporting to avoid paying IGST.
Incoterms & risk split (why this matters)
Incoterms (from ICC) define who pays for transport, insurance and who bears risk at what point. Choosing the right Incoterm (e.g., FOB vs CIF vs DDP) saves disputes and clarifies who handles customs, insurance and delivery.
Common mistakes to avoid
- Wrong HS code → wrong duty & blocked shipment. (Always double-check.)
- Missing IEC or incorrect IEC details → customs/port delays.
- Not filing LUT before export → blocked cash/need to claim IGST refund.
- Vague contract (no Incoterm/payment method) → payment/delivery disputes
Quick export checklist (before goods leave)
- IEC ready and active.
- Correct HS code confirmed.
- Contract with Incoterm & payment terms signed.
- Documents prepared (Invoice, Packing List, Shipping Bill).
- LUT filed (if exporting without paying IGST)
Ready to Start Your Import–Export Journey?
If you are planning to begin or expand your import–export business, our team can guide you through every step — from IEC registration, HS code classification, documentation, DGFT compliances, customs clearance, Incoterms® advisory, to shipping and payments. Get expert consultation and make your trade process smooth and hassle-free.
📞 Contact us today to discuss your requirements and start growing your business globally.
