Preview the New Website of FIEO! (Under Construction)
Basic Guidance on How to Export



Export/Import Trade is regulated by Directorate General of Foreign Trade (DGFT) and its regional offices. However, in the export/import trade, transaction in foreign exchange is involved and such transactions are governed by Foreign exchange Management Act, 1999 under which Foreign Exchange Management (Export of goods and services) Regulations, 2000 were framed. These Regulations have been notified vide Notification No. FEMA 23/2000-RB dated May 3, 2000 as amended from time to time.

Other facets having bearing on credit such as facilitation of exports through Establishment of Branch Office/Liaison office, Formation of Joint Venture, Wholly-owned Subsidiary, Exports to Warehouse, Merchanting Trade, Cross Border online transactions are also regulated by the RBI.

Export in itself is a very wide concept and lot of preparation is required by an exporter before starting an export business.

To start export business, the following steps may be undertaken:       



Exports and Imports shall be free, except in cases where they are regulated by the provisions of this Policy or any other law for the time being in force. The item wise export and import policy shall be, as specified in ITC(HS) published and notified by Director General of Foreign Trade, as amended from time to time is available at

The Director General of Foreign Trade may, however, specify through a Public Notice such terms and conditions according to which any goods, not included in the ITC(HS), may be exported without a license/ certificate/ permission.

Schedule 1 of ITC (HS) gives the Import Policy Regime and Schedule 2 of ITC (HS) gives the Export Policy Regime. Schedule 2 categorizes products as:-






Providing customized samples as per the demands of Foreign buyers help in getting export orders. As per FTP 2015-2020, exports of bonafide trade and technical samples of freely exportable items shall be allowed without any limit.


Denomination of Exports Contracts


All export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but the export proceeds shall be realized in freely convertible currency. 



The price should be worked out taking into consideration all expenses from sampling to realization of export proceeds on the basis of terms of sale i.e. Free on Board (FOB), Cost, Insurance & Freight (CIF), Cost & Freight(C&F), etc. Goal of establishing export costing should be to sell maximum quantity at competitive price with maximum profit margin.


Payment Term

Deciding on the best payment term (L/C, DA, DP etc.) as given in chart below.


Customs House Agents


Exporters may avail services of Customs House Agents licensed by the Commissioner of Customs. They are professionals and facilitate work connected with clearance of cargo from Customs.


Mandatory documents for export of goods from India

1. Bill of Lading/Airway Bill/ Lorry Receipt/ Railway Receipt/Postal Receipt.

2. Commercial Invoice cum Packing List

3. Shipping Bill/Bill of Export

(In specific cases of export or import, the regulatory authority concerned may electronically or in writing seek additional documents)


Customs Procedure

No goods can be exported without clearance of export consignment by customs which issues the Let Export Order (LEO) after filing of shipping bill.


Submission of Export Documents to Bank


Within 21 days from the date of export, exporter should lodge export documents with the Banks.  In cases, where exporters present documents pertaining to exports after the prescribed period of 21 days from date of export, Banks may handle them without prior approval of the Reserve Bank, provided they are satisfied with the reasons for the delay.








Mode of Payment of export


The amount representing the full export value of the goods exported shall be received through a Bank in the manner specified in the Foreign Exchange Management (Manner of Receipt & Payment) Regulations, 2000 as under : 


·         Bank draft, pay order, Banker’s or personal cheques. 

·         Foreign currency notes/foreign currency travelers cheques from the buyer during his visit to India. 

·         Payment out of funds held in the FCNR/NRE account maintained by the buyer

·         International Credit Cards of the buyer. 


Note: When payment for goods sold to overseas buyers during their visits  is  received  in  this  manner,  EDF  (duplicate)  should  be  released  by  the  Banks  only  on  receipt  of  funds  in  their  Nostro  account  or  if  the  Bank concerned  is  not  the  Credit  Card  servicing  Bank,  on  production  of  a  certificate by the exporter from the Credit Card servicing Bank in India to  the effect that it has received the equivalent amount in foreign exchange,  Banks may also receive payment for exports made out of India by debit to  the  credit  card  of  an  importer  where  the  reimbursement  from  the  card  issuing Bank/ organisation will be received in foreign exchange.


Realization of Export Proceeds


As per FTP 2015-2020, all export contracts and invoices shall be denominated either in freely convertible currency of Indian rupees, but export proceeds should be realized in freely convertible currency except for export to Iran. Export proceeds should be realized in 9 months.

SPS/TBT Measures

It covers technical requirements resulting from food safety and animal and plant health measures, including pesticide residue limits, inspection requirements and labeling etc. set by a country.

Export Inspection Agencies

They promote manufacturer exporters to implement best quality management system to produce a consistent quality product to meet buyer’s specification and gain confidence of the buyer by pre shipment inspection, quality control and certification with many laboratories countrywide.


These agreements, which can be bilateral or multilateral, reduce or eliminate trade barriers such as tariffs and quotas which gives price competitiveness as well as lead to creation of new markets for businesses, facilitate the production of high-quality goods and enhance economic growth.





It is necessary to obtain PAN based Business Identification Number (BIN) from the Customs prior to filing of shipping bill for clearance of export good and open a current account in the designated Bank for crediting of any drawback amount and the same has to be registered on the system.

In case of Non-EDI, the shipping bills or bills of export are required to be filled in the format as prescribed in the Shipping Bill and Bill of Export (Form) regulations, 1991. An exporter needs to apply different forms of shipping bill/ bill of export for export of duty free goods, export of dutiable goods and export under drawback etc.

Under EDI System, declarations in prescribed format are to be filed through the Service Centers of Customs. A checklist is generated for verification of data by the exporter/CHA. After verification, the data is submitted to the System by the Service Center operator and the System generates a Shipping Bill Number, which is endorsed on the printed checklist and returned to the exporter/CHA. In most of the cases, a Shipping Bill is processed by the system on the basis of declarations made by the exporters without any human intervention. Where the Appraiser Dock (export) orders for samples to be drawn and tested, the Customs Officer may proceed to draw two samples from the consignment and enter the particulars thereof along with details of the testing agency in the ICES/E system.

Any correction/amendments in the check list generated after filing of declaration can be made at the service center, if the documents have not yet been submitted in the system and the shipping bill number has not been generated. In situations, where corrections are required to be made after the generation of the shipping bill number or after the goods have been brought into the Export Dock, amendments is carried out in the following manners.

  • The goods have not yet been allowed "let export" amendments may be permitted by the Assistant Commissioner (Exports).
  • Where the "Let Export" order has already been given, amendments may be permitted only by the Additional/Joint Commissioner, Custom House, in charge of export section.

In both the cases, after the permission for amendments has been granted, the Assistant Commissioner / Deputy Commissioner (Export) may approve the amendments on the system on behalf of the Additional /Joint Commissioner. Where the print out of the Shipping Bill has already been generated, the exporter may first surrender all copies of the shipping bill to the Dock Appraiser for cancellation before amendment is approved on the system.


4.         GST PROCEDURE

Every exporter, irrespective of his turn-over, is able to be registered with GSTIN in Part A of Form GST REG-01 on the common portal.

Under GST, export of goods and services are treated as zero-rated supply. This zero-rated supply enables the exporter to be entitled to claim refund of GST paid on input. Exporter has two options to claim refund :

(i) Export under LUT/Bond and claim refund of accumulated input tax credit or 

(ii) export on payment of IGST and claim refund thereof.




Basic Guidance on How to Export