How to Start Exports from India

Directorate General of Foreign Trade

31 Jul 201604:49

Summary

TLDRNicole, from a coconut-rich region in India, is guided on starting an export business to meet Middle Eastern demand for coconut products. The video outlines the steps: choosing a business entity, obtaining an Import-Export Code (IEC) from the Directorate General of Foreign Trade, registering with the Coconut Development Board, and understanding inspection certificates under the Export Quality Control and Inspection Act, 1963. It teases further insights into international trade specifics and government support for exporters.

Takeaways

🌴 **Coconut Business Potential**: Nicole's region has abundant coconut plantations, indicating a potential source for her export business.
📈 **Market Demand**: There is a suggested demand for coconut products in the Middle East, which could be a promising market for Nicole's business.
🏢 **Business Entity Selection**: Nicole needs to choose between various business entities like proprietorship, partnership, etc., to set up her export business.
📋 **Merchant or Manufacturer**: She must decide if she will be a merchant exporter or a manufacturer exporter, which affects the registration process.
🔑 **IEC Requirement**: Nicole must obtain an Import-Export Code (IEC) from the Directorate General of Foreign Trade for legal export operations.
💻 **Online Application**: The IEC application can be done online, with a fee of 500 rupees, emphasizing the digital accessibility of the process.
🚫 **IEC Limitation**: Nicole should be aware that only one IEC can be issued against one PAN, and applying for more is against government rules.
📅 **Lifetime IEC**: The IEC is valid for a lifetime and does not require renewal, providing long-term validity for her business operations.
📝 **Registration with EPC**: Nicole must register with an Export Promotion Council (EPC) or a commodity board relevant to her coconut products.
📑 **Inspection Certificates**: She needs to identify the necessary inspection certificates for exporting her products, ensuring quality and compliance.
🌐 **Further Technicalities**: There are additional considerations in international trade such as payment methods, shipping, and documentation that Nicole will need to learn.

Q & A

What is the first step Nicole should take to start her export business?
-The first step is for Nicole to choose the nature of her business entity, which can be a proprietorship, partnership, limited liability partnership, limited company, one-person company, trusts, registered society, or HUF.
What are the different types of business entities Nicole can choose from for her export business?
-Nicole can choose from proprietorship, partnership, limited liability partnership, limited company, one-person company, trusts, registered society, or HUF.
Why does Nicole need to decide whether to be a merchant exporter or a manufacturer exporter?
-This decision is important as it affects the registration process and the type of business operations Nicole will engage in, which in turn influences the legal and regulatory requirements she must comply with.
What is an Import-Export Code (IEC) and why does Nicole need it?
-An Import-Export Code (IEC) is a unique identification number issued by the Directorate General of Foreign Trade (DGFT), required for any person making imports or exports. Nicole needs it as per the Foreign Trade (Development and Regulation) Act of the Government of India.
How can Nicole apply for an IEC?
-Nicole can apply for an IEC online through the DGFT's website, and she needs to pay a fee of 500 rupees for the application.
What are the consequences if Nicole applies for more than one IEC against one PAN?
-Applying for more than one IEC against one PAN is a violation of government rules and could lead to legal consequences.
Why is it mentioned that an IEC is for a lifetime and no renewal is required?
-This is to inform Nicole that once she obtains an IEC, it does not expire and she does not need to go through the renewal process, making it a one-time requirement for her export business.
Why should Nicole register with an Export Promotion Council (EPC) or a commodity board?
-Registration with an EPC or commodity board is necessary for Nicole to get support and guidance in her export activities, and to ensure compliance with industry-specific regulations and standards.
Which EPC should Nicole register with for exporting coconut products?
-Nicole should register with the Coconut Development Board, which is the EPC for all coconut products, excluding those made from coconut husk and fiber.
What is the role of the Export Inspection Council of India in Nicole's export business?
-The Export Inspection Council of India helps in identifying the inspection certificates required for exporting products, ensuring that Nicole's coconut products meet the necessary quality control and inspection standards.
What additional aspects of international trade will be covered in the next set of videos for Nicole?
-The next set of videos will cover technical specifications related to payment methods, shipping, documentation, and other aspects of international trade to help Nicole navigate the global market effectively.

Outlines

00:00

🌴 Starting an Export Business in India: Coconut Products

Nicole, from a coconut plantation-rich region in India, is considering starting an export business after a friend in the Middle East suggests a potential demand for coconut products. Nicole will need to establish a business entity, choose between various types such as proprietorship, partnership, or a limited company, and decide if she will be a merchant or manufacturer exporter. She will then have to register her business and obtain an Import-Export Code (IEC) from the Directorate General of Foreign Trade, which is mandatory for any import or export activities in India. Nicole's business, 'Fresh Coconut Products,' will also require registration with the Coconut Development Board, which is the Export Promotion Council (EPC) for coconut products, and possibly with the Coir Board for products made from coconut husk and fiber. Additionally, Nicole must identify the necessary inspection certificates for her products under the Export Quality Control and Inspection Act, 1963, to ensure quality control and inspection standards are met for exporting.

Mindmap

Keywords

💡Export Business

An export business involves the process of selling goods or services to clients in other countries. In the video's context, Nicole is looking to start an export business in India, focusing on coconut products. This involves understanding international trade regulations, market demands, and logistics.

💡Coconut Plantations

Coconut plantations are agricultural areas where coconut trees are cultivated for their fruit. In the script, Nicole's region is abundant with coconut plantations, which is the raw material for her proposed export business, indicating the potential for a ready supply of product.

💡Middle East

The Middle East is a region that Nicole's friend believes has a demand for coconut products. This geographical area is significant in the video as it represents a potential market for Nicole's export business, highlighting the importance of market research in international trade.

💡Merchant Exporter

A merchant exporter is an individual or company that purchases goods from manufacturers and then sells them to buyers in other countries. The video suggests that Nicole needs to decide whether she will be a merchant exporter or a manufacturer exporter, which is crucial for setting up her business operations.

💡Manufacturer Exporter

A manufacturer exporter is a company that produces goods and sells them directly to buyers in other countries. The script implies that Nicole has the option to be a manufacturer exporter, which would mean she would be involved in the production process of the coconut products.

💡Import-Export Code (IEC)

An Import-Export Code (IEC) is a unique identification number issued by the Directorate General of Foreign Trade (DGFT), required for any person or company in India to engage in进出口业务. Nicole needs an IEC to legally conduct her export business, as mandated by the Foreign Trade (Development and Regulation) Act of India.

💡Directorate General of Foreign Trade (DGFT)

The Directorate General of Foreign Trade (DGFT) is an attached office under India's Ministry of Commerce, responsible for issuing IECs. In the script, Nicole must apply to the DGFT to obtain her IEC, which is a necessary step for setting up her export business.

💡Export Promotion Council (EPC)

An Export Promotion Council (EPC) is an organization that promotes the export of certain products or services from a country. Nicole needs to register with an EPC, such as the Coconut Development Board, to get support and guidance in exporting coconut products, which is integral to her business setup.

💡Commodity Board

A commodity board is a regulatory body that oversees a specific commodity's trade. The script mentions that Nicole might need to register with a commodity board, like the Coconut Development Board or the Coir Board, depending on the type of coconut products she plans to export.

💡Inspection Certificates

Inspection certificates are documents that verify the quality and standards of exported goods. As per the Export Quality Control and Inspection Act, 1963, Nicole needs to identify the necessary inspection certificates for her coconut products to ensure they meet international standards, which is vital for successful exports.

💡Export Inspection Council of India

The Export Inspection Council of India is a body that aids in identifying the inspection certificates required for various products. In the video, this council would assist Nicole in determining the necessary certificates for her coconut products, emphasizing the importance of quality control in exports.

Highlights

Nicole is considering starting an export business in India, leveraging the local coconut plantations.

A friend in the Middle East suggests there might be demand for coconut products.

Nicole's friend offers to help secure orders, but Nicole needs to set up a trade business first.

Nicole must choose a business entity type such as proprietorship, partnership, etc.

Different registration requirements exist for various business entities.

Nicole opts for a proprietorship named 'Fresh Coconut Products'.

An Import-Export Code (IEC) is mandatory for any import or export activities in India.

IEC can be obtained by applying to the Directorate General of Foreign Trade online.

IEC is issued against one PAN, and applying for more than one is against government rules.

IEC is valid for a lifetime and does not require renewal.

Nicole needs to register with an Export Promotion Council (EPC) or a commodity board.

For coconut products, Nicole should register with the Coconut Development Board.

Inspection certificates are required for exporting products, as per the Export Quality Control and Inspection Act, 1963.

The Export Inspection Council of India assists in identifying required inspection certificates.

Nicole's groundwork is prepared for starting her export business.

Further videos will cover technical specifications, payment methods, shipping, and documentation.

Government of India provides benefits to help exporters like Nicole stay competitive globally.