How to Start Exports from India

Summary

Nicole, 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.