Written By: Ujjwal Matoliya
📦 EXPORT PROCEDURE – 17 STEPS (Business Studies)
1️⃣ Receipt of Enquiry
The process starts when a foreign buyer (importer) sends an enquiry to the exporter.
The enquiry contains details about the product, quantity, quality, price, delivery date, and other terms.
2️⃣ Sending Quotation / Proforma Invoice
The exporter replies by sending a Quotation or Proforma Invoice.
It includes price, description of goods, quantity, payment terms, delivery terms, insurance, and shipping details.
3️⃣ Receipt of Order or Indent
If the importer agrees to the quotation, he places an order.
This official order is called an Indent.
4️⃣ Assessing Importer’s Creditworthiness
Before producing goods, the exporter checks whether the importer is financially reliable.
This is done through:
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Bank references
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Trade references
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Credit agencies
5️⃣ Securing Letter of Credit (L/C)
To ensure payment safety, the exporter asks for a Letter of Credit (L/C) from the importer’s bank.
It is a guarantee by the bank that payment will be made after shipment.
6️⃣ Obtaining Export License
The exporter must have an Import Export Code (IEC) issued by the government.
If required, a special export license must also be obtained from the licensing authority.
7️⃣ Registration with Authorities (RCMC & ECGC)
The exporter registers with:
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Export Promotion Council (to obtain RCMC – Registration cum Membership Certificate)
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ECGC (Export Credit Guarantee Corporation) for protection against payment risk
8️⃣ Obtaining Pre-Shipment Finance
The exporter may need working capital to manufacture goods.
Banks provide Pre-Shipment Finance (packing credit loan) against the confirmed order or L/C.
9️⃣ Production / Procurement of Goods
The exporter manufactures or purchases the goods according to the importer’s specifications.
🔟 Pre-Shipment Inspection
Goods are inspected to ensure quality standards.
Under the Export Quality Control and Inspection Act, 1963, inspection may be required before shipment.
1️⃣1️⃣ Excise Clearance
If applicable, excise duty formalities are completed and clearance is obtained from the excise department.
1️⃣2️⃣ Obtaining Certificate of Origin
A Certificate of Origin is obtained from the Chamber of Commerce.
It certifies the country where the goods were manufactured.
1️⃣3️⃣ Reserving Shipping Space
The exporter books space with a shipping company.
After booking, a Shipping Order is issued.
1️⃣4️⃣ Packing and Forwarding
Goods are properly packed, labeled, and forwarded to the port.
A forwarding agent may handle transportation to the dock.
1️⃣5️⃣ Insurance of Goods
The exporter takes a marine insurance policy to protect goods against loss or damage during transit.
1️⃣6️⃣ Customs Clearance & Bill of Lading
The exporter submits the Shipping Bill and required documents to customs.
After verification:
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Goods are allowed for export
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A Bill of Lading is issued by the shipping company
1️⃣7️⃣ Securing Payment (Bill of Exchange)
The exporter prepares a Bill of Exchange and sends documents through the bank.
The importer’s bank makes payment as per L/C terms.
Once payment is received, the export process is complete.
