A Ten Step Export Process Flow Chart

Step 1 Step 6
Identification of Export Product Banking Procedures, Arranging
& Export Market Trade Finance and Insurance

Step 2 Step 7
Engaging with State Government Getting Export Goods Ready
Facilitation Bodies

Step 3 Step 8
Initial Registrations Shipping/Logistics
Documentation

Step 4 Step 9
Export Trade Registrations Export Closure and Claiming
Export benefits

Step 5 Step 10
Obtaining an Export Order Reviewing the first consignment

Step 1 –Identification of Export Product & Export Market

First of all you need to decide on the kind of export activities you will be involved in. For
example, if you have a manufacturing unit of one commodity and you want to export it, you
would be a manufacturer exporter. If you are sourcing/purchasing one commodity from
someone else and want to export it you would be a merchant exporter.
If you are manufacturing one commodity in your own manufacturing unit and you also want
to source / purchase another commodity from someone else and export it along with your
 manufactured commodity, you would be a merchant cum manufacturer exporter. If you
have a service like IT software development service and you wish to export the software
development service you would be known as a service exporter.

Prepare a
Business Plan

Product
Identification for
Export

Market Research on
the Product

Product
Evaluation

Market
Identification

MANUFACTURER EXPORTER MERCHANT EXPORTER

Decide on the basis of
research
MERCHANT CUM
MANUFACTURER EXPORTER SERVICE EXPORTER

The trade statistics available on the website of the Commerce Department would help you
understand the demand of products and the countries where they are being exported. You may
take the help of the following websites to identify your product, if you have not decided on one
and the country where you may like to export.
1. Research and identify the PRODUCTS/SERVICES
(https://commerce.gov.in/trade-statistics/)
2. Research and Identify the MARKET/COUNTRY
(https://exportpotential.intracen.org/en)
Your choice of product must ensure

Growth prospects and Policy regulations International quality

Profitability of the Competition facing
sustainability of the pertaining to the standards pertaining to
product. the product.
product. product. the product.

Remember

To Assess the target market/ country- Analyze consumption,

demographic and economic trends.

To Analyze the demand of a product in that country beforehand.

To Analyse the standards and certification requirements of a product

in every country you identify because the perception of quality and
service related to a product/service varies across nations based on
requirements of the customers.

To Test the demand

Product Sampling and Evaluation: The sample of the product should be of high quality, with
a neat, purposeful and appealing packaging conforming to international standards and supported
with an appropriate brochure.

Step 2 –Engaging with State Government Facilitation Bodies

Engaging with State Govt. facilitation bodies will help you to choose the correct course of
action in Export business and will also direct you to the right place and persons related to export
business. Some of these facilitation bodies are named below.
 District Industries Centre, Government of West
Bengal

West Bengal Industrial Development Corporation

Limited (Export Facilitation Centre)

West Bengal Trade Promotion Organisation (WBTPO)

Director of Industries, Government of West Bengal

– An exporter in West Bengal may visit the office of the District Industries centre (2
Barrackpore Road Barasat PO, Nabapally, Kolkata, West Bengal 700126) which is the advisory
body and single-point mechanism to aid and assist the exporters, and also to facilitate clearances
from other departments, thereby mitigating the issues faced by potential exporters with the
relevant authorities in the Central as well as the State Government

West Bengal Industrial Development Corporation Limited (Export Facilitation Centre)

– An exporter in West Bengal may also visit the Export Facilitation Centre of West Bengal
Industrial Development Corporation Ltd. in collaboration with Indian Institute of Foreign Trade
providing all kinds of support to the entrepreneurs of West Bengal venturing into the export
business.

West Bengal Trade Promotion Organisation (WBTPO)

– An exporter in West Bengal may also visit West Bengal Trade Promotion
Organization. WBTPO is the premier agency of the West Bengal State’s Commerce and
Industries Department to promote trade, commerce and services for overall economic
development across the state. It is a joint venture of West Bengal Industrial Development
Corporation (WBIDC) and Kolkata Municipal Corporation (KMC). WBTPO is committed to
building enduring partnerships to create, manage, develop and build a platform for organizing
national and international exhibitions, conferences, business meets with allied public utilities
and social infrastructure.

Step 3 - Initial Registrations

Select a name for

your proposed
Firm/LLP

Registration under
Company Act

OR Prepare a
Partnership Deed

Obtain a
Trade Licence

For a new entrepreneur or start up in West Bengal, it is advised to open a Proprietary

Firm/LLP (Limited Liability Partnership). For Registration under Company Act, the
entrepreneur needs to apply to ROC located at Nizam Palace, Kolkata
Trade License is a certificate that is essential to start or carry on a particular trade or
business for which it is issued. For Issuance of Trade License (Permanent Certificate of
Enlistment) the applicant have to apply through online mode only in e-district portal
(http://edistrict.wb.gov.in).
 Step 4 - Export Trade Registrations

Open a
Bank • Apply to SBI located at
Account respective district

Obtain a PAN from • Apply to Aayakar Bhavan located at

Income-Tax Chowringhee, Kolkata
Authorities

Registration • Apply to Kar Bhawan located at

with GST Office Heritage Building Kolkata

Obtain IEC from • Apply to DGFT located at

DGFT Esplanade, Kolkata

Registration with Export

Promotion Council to get
RCMC

Having a bank account with a PAN is mandatory and registration regulatory bodies and export
promotion councils are necessary before starting the export business. These activities and
relevant processes are detailed below.

Open an Account with a Bank

Start a Current account with any banker based in West Bengal authorized to deal in foreign
exchange. The procedures are simple and can be done online or at the branch concerned. The
following link of one of the banks gives an idea of the guidelines.
https://corp.onlinesbi.com/cinbreg/caoguidelines.htm

Obtain a Permanent Account Number (PAN)

By visiting Income Tax Department in the name of the Firm/Company, you may obtain it from
any of the Income-Tax jurisdictional office in West Bengal. Online application can be made
either through the portal of NSDL ( https://tin.tin.nsdl.com/pan/index.html) or through the
portal of UTITSL (https://www.pan.utiitsl.com/PAN/index.jsp).
Registration with GST/Sales Tax authorities

GST-Intra state and Inter-state: It is important to understand that all goods have a component of
GST whether for import or export or local purchase. As per the World Trade Organisation, the
product cost should not contain the duties, cess and taxes of the goods. Hence when goods are
purchased, the exporter pays GST and either manufactures them and claims input tax credit on
goods exported or when it is exported directly, he provides as a supporting document:

➢ an RCMC of the related Export Promotion Council and does not pay GST provided
it is exported within 90 days or
➢ LUT, Letter of undertaking where the Commissioner allows goods to be exported
without payment of GST or
➢ Payment of IGST where the same is claimed after exports are complete.

For obtaining exemption, one needs to be registered with the office of GST in West Bengal. An
entrepreneur may apply online at https://reg.gst.gov.in/registration/.
For information and guidance on GST registration, you may contact their office at GST
Bhawan, Rash Behari Ave, Narkelbagan, Sector C, East Kolkata Twp, Kolkata, West Bengal
700107.
Also an important aspect is the E-Way Bill, an Electronic Way bill for movement of goods that
is generated on the Portal and which is under the State Government. When goods move from
the toll-facilitation area which are the borders of the States, the goods which are bound for
exports or imported goods pass through borders which are not bound under the IGST or
CGST/SGST jurisdiction.

Apply for an Importer Exporter Code (IEC) to be issued by DGFT

This can be applied by a potential Exporter/Importer, online on dgft.gov.in. The fees for this
can be paid online. The IEC is issued in 24 hours and has a Life-long validity. The IEC is PAN
based. This IEC will be valid for all its branches as is mentioned on the IEC certificate. For any
assistance on application, you may visit the office of Additional Director General of Foreign
Trade, (4, Esplanade East, Kolkata-700069, E-Mail: [email protected], Website:
https://www.dgft.gov.in/CP/).

Obtaining an RCMC from FIEO or other relevant Export Promotion Council or

Commodity Board
To avail concession and to be facilitated, one must obtain Registration cum Membership
Certificate (RCMC) from FIEO or the respective Export Promotion Council or Commodity
Board. Some of these organisations located in Kolkata, West Bengal are:

Sl Name Address & Telephone Number Website

No.
1 EXPORT 53/1, Sambhunath Pandit Street, Second https://www.epch.in/
PROMOTION Floor
COUNCIL FOR (opp. Bangur institute of Neuroscience
HANDICRAFT & Psychiatry),
KOLKATA - 700025
91-33-2419174491-33-241

2 FEDARATION OF Express Tower, 6th Floor, 42A, www.https://www.fieo.org/

INDIAN EXPORT Shakespeare Sarani
ORGANISATION (Junction of Rawdon Street and
(FIEO) Shakespeare Sarani),
Kolkata-700 017
Phone: +91-33-40084890/91
Fax: +91-33-22805781

3 ENGINEERING ‘Vanijya Bhawan’, 1st Floor https://www.eepcindia.org/

EXPORT International Trade Facilitation Centre
PROMOTION 1/1, Wood Street
COUNCIL Kolkata 700016
Phone : (+91 33) 22890651/52
Fax : (+91 33) 22890654

4 CAPEXIL CHEMICAL Vanijya Bhavan (3rd Floor), http://capexil.org/

& ALLIED International Trade Facilitation Centre
PRODUCTS 1/1, Wood Street,
KOLKATA-700016, INDIA.
Ph: 033-22891721, 22, 23

5 THE PLASTICS Vanijya Bhavan, ITFC https://www.plexconcil.org/

EXPORT 1/1 Wood Street, Kolkata
PROMOTION West Bengal 700 016, INDIA
COUNCIL +91-33-2283 4497 / 2283 4498
+91 93310 78058
6 COUNCIL OF 1B, First Floor, “Duckback House”, http://leatherindia.org/
LEATHER EXPORTS 41, Shakespeare Sarani,
Kolkata – 700 017.
Tel: +91-33-22835479/80.
Fax: +91-33-22877270.

7 APPAREL EXPORT Plot No. 3B,LA Block, Sec-III, Salt https://www.aepcindia.com/

PROMOTION Lake City, Kolkata- 700 098
COUNCIL Phone - 033-23359820
8 SHELLACH EXPORT 1/1 2nd Floor, Vanijya Bhavan, http://www.shefexil.org/
PROMOTION International Trade Facilitationcen,
COUNCIIL Wood Street, Kolkata, West Bengal
700016
Phone: 033 2283 4417

9 SPICES BOARD 195a, Park Street, Park Street http://www.indianspices.com/

Phone · 033 2280 4304
10 AGRICULTURE AND Mayukh Bhawan, 4th Floor, Bidhan https://apeda.gov.in/apedawebsite/
PROCESSED FOOD Nagar (Salt Lake), Kolkata - 700091
PRODUCTS EXPORT (W.B.), Landmark- Near Bikash
DEVELOPMENT Bhawan, Salt Lake
AUTHORITY Phone: +91- 033-23378363

11 EXPORT Falta Special Economic Zone https://www.epces.in/

PROMOTION CN 1,cn block,Salt lake,
COUNCIL FOR EOUs Sec V Kolkata West Bengal 700091
AND SEZ UNITS
12 GEM & JEWELLERY 1/1, ITFC Building, 6th Floor, Wood https://gjepc.org/
EXPORT Street, Dr M.L.K. Sarani, Park Street
PROMOTION area, Kolkata, West Bengal 700017
COUNCIL Phone: 033 2282 3630

13 TEA BOARD INDIA 14, B.T.M. Sarani (Brabourne Road) http://www.teaboard.gov.in/

Kolkata 700 001
Phone No. +91 33 2235 1331
14 BASIC CHEMICALS “KRISHNA Building”, 8th Floor, https://chemexcil.in/
PHARMACEUTICALS Room No. 812,
& COSMETIC 224A, Acharya Jagadish Chandra Bose
EXPORT Road, Kolkata - 700017
PROMOTION Phone: +91 -33-22805791
COUNCIL
 Step 5 - Obtaining an Export Order

Following are the few basic steps that an exporter needs to follow in order to get an export
order.

After identification of your proposed products and markets, it is time to start looking out for
potential buyers and customers. You need to build a robust marketing strategy and plan.
Remember that your export marketing strategies are only as effective as they are relevant to the
buyer’s/customer’s lives.

Traditional
Marketing

Export
Marketing
Strategy
/Plan

Online
Marketing
Identifying potential buyers/customers
There are several ways of doing this. You may contact Trade representatives in India and
Overseas or Export Promotion Councils and Commodity Boards. You may look up
International Trade Directories, as also participate in Global Trade Fairs and exhibitions, both
within the country as well as overseas. Most Export Promotion Councils have a list of their
international events on their website. Friends and personal contacts overseas may also help you
in doing this. You may visit the FIEO or council offices or the Export Facilitation Centre in
WBIDCL.

The decision to select distributors versus brokers, wholesalers, agents, retail channels etc is very
important. Setting a roadway for your marketing is a critical factor because decisions on sales
and pricing will impact your overall profitability.

E-Commerce and Exports

It occurs when we obtain export orders over the Internet and we carry out exports on-line. E-
Commerce has proved to be a learning platform for many new exporters. For SME exporters in
West Bengal, who may be having limited resources, e - commerce would offer benefits as
compared to standard export marketing practices wherein the reach is to a large number of
potential buyers across the world without any requirement to have a physical presence overseas.
Upon completion of a contract you have to ensure delivery of your export items to the
consignee. You may ship your products through the mechanism of Customs agents and Cargo
forwarders. E-commerce platforms, such as Ebay (sellglobal.ebay.in) & Etsy (www.etsy.com)
provide a complete service with courier and payment gateways. Some buyers may agree to
remit the payment in advance through the routine online mechanism of internet banking, credit-
cards, which are all permissible.

Taking active part in Global Trade-Fairs and Expos

Marketing Access Assistance (MAI – Marketing Access Initiative) is a government
grant/subsidy provided to exporters for their export promotional activities such as for
participation in overseas and global Trade Fairs and Exhibitions as also the Buyer Seller Meets,
organized by Export promotion councils, to preliminarily find out markets for export of their
specific items and goods to be sent from India in the initial phase. The fairs may be of various
types such as B2B (Buyer to Buyer), B2C (Buyer to Customer). The fairs could also be retail
fairs where sale is allowed. For example, events of APEDA can be seen through this link
http://apeda.gov.in/apedawebsite/trade_promotion/International_trade_event_2020_21.ht
m

West Bengal Exporters having exports up to FOB value of Rs. 30 crores, and having minimum
12 Months Membership with the concerned Export Promotion Council are eligible for MAI and
have to claim their air fare reimbursement after successful completion of the event within a
period of 90 days of return to India. The participation of an eligible exporter, as per MAI
guidelines would be subject to an upper ceiling to a maximum of two MAI Events in a Year.

The Reserve Bank of India (RBI) permits opening of a temporary foreign currency account
abroad to enable exporters to deposit the overseas sales earnings as also facilitate operations of
the account through the stretch of their entire stay overseas. However, the remaining balance
needs to be repatriated back to the country within thirty days of completion of the Fair. Details
thereof need to be submitted to the respective Bank or Authorised dealer.

Negotiation of Price
Pricing and contract/trading terms for a new export market are both very critical. Regular and
promotional price points, specific trading terms and overall profitability must be taken into
consideration. Your pricing strategy must include a provision for changes in the prices of
products in order to convince the potential buyers to place an order for the product or even try
the product. Pricing strategies would include discounts, promotions etc.

Quantity & Delivery schedules

Keeping to delivery schedules is extremely important in international trade in order to sustain
your business. In a world of competition, any failure in meeting time schedules would lead to
losing business.
 International markets look for sustainability, consistency, quality and volumes. Export is not
about shipping one consignment. It is a common trend that new exporters are not able to meet
the requirement of volumes after the initial consignments. It is therefore important to get into
exports only if you have the capacity to meet the demand of large volumes.

Firming up Export Order and Signing an export contract

All export transactions are made through Export Sale Contract. An export contract is a written
document on the basis of which the seller or exporter exports the goods or services to the
overseas purchaser or importer for a certain price. There is no standardised language of an
export contract as the contents may change in respect of every country or even every transaction
and may be dependent on the product or service itself. Some of the basic inclusions in an export
contract are as follows:
I. Name and details of exporter or importer

II. Product standards and specifications

III. Nature, manner of the required inspections and the inspection agency.

IV. Terms of delivery as applicable

V. Total value of the Order or legal Contract including the payment currency, applicable taxes
and duties

VI. Units of measure in both figure and words.

VII. Specifications on packaging, labeling and marking of the product.

VIII. Terms and conditions for export including the delivery date

IX. Shipment of cargo and terms thereof

X. Payment Terms

XI. Insurance Terms and scope of coverage

XII. Product coverage including warrantees offered

XIII. Arbitration terms and dispute-settlement mechanism

XIV. Force majeure provisions

XV. Signature of the parties

Step 6 – Banking Procedures, Arranging Trade Finance and Insurance

Follow the Banking Regulations

1 for Export

Obtain Trade Finance from a Bank

2 dealing in Foreign Exchange

Obtain Insurance coverage with

3 Export Credit Guarantee Corporation
(ECGC)

Banking Regulations for Exports

The banking regulations that govern the export of goods and service are specified in the Foreign
Exchange Management Act 1999 (FEMA).

Handling / Reporting of export/import transactions from clearance by the Customs Authorities

till realisation and repatriation of proceeds to India are done at different levels with Reserve
Bank of India as under
 Trade Agreement Receipt of
Customs Authorised Dealer /ACU Mechanism Sale proceeds from Extension of time
advance against
(Asian Clearing International Trade
exports
Union)) Fairs/ Exhibitions
Goods Exporter
Export / Import
Data Processing Indo-Myanmar Caution List
Service & Management Trade Export of goods to Bank
(Software) System EEFC (Exchange under various
Exports Earners Foreign schemes
Indo-Iran Trade Currency including SEZ’s
Account)
Indo-Bhutan
Trade

Border Trade
with Myanmar

Customs
The shipping bill needs to be furnished in duplicate to the concerned Customs Commissioner.
After verification and attestation, the authority returns to the exporter one copy of the shipping
bill marked ‘Exchange Control Copy’ for depositing to the Bank within 21 days from the date
of export for negotiation of the shipping documents. The export data is transmitted
electronically to the RBI server through the ICEGATE (Indian Customs Electronic Gateway).
Software exporters submit Softex forms in duplicate to the STPI/SEZ for certification within a
period of thirty days on a monthly basis transmitted in electronic format to RBI.

Authorized Dealer
Export/Import Data Processing and Monitoring System regularly keeps a watch and track of the
trade transactions.

Trade Agreement / ACU Mechanism

Indo-Myanmar Trade agreement – Under this agreement trade with Myanmar can be carried out
in any freely convertible currency, as also the ACU mechanism.

Indo-Iran trade agreement– Under this agreement trade with Iran can be carried out in any
freely convertible currency, as also the ACU mechanism, in respect of the eligible items.

Indo-Bhutan trade agreement – Under this agreement trade with Bhutan can be carried out in
any freely convertible currency, as also under the Indian Rupees mechanism.

Indo-Myanmar border trade agreement – Under this agreement trade with Myanmar can be
carried out in any freely convertible currency, as also in any permissible currency.
Receipt of advance against exports
FEMA regulations provide for shipment of export cargo within a year from the receipt of
advance payment. In addition, the rate of interest, on such advance payment does not exceed
London Inter-Bank Offered Rate - LIBOR + 100 basis points; as also it is essential that the
export and shipment documents are routed through the Bank through which advance payment
has been received.

In case of export of goods by Special Economic Zones (SEZs), exporter may carry out job work
outside the SEZ boundaries and thereafter export goods from there itself subject to realization
of export proceeds. Further, Banks permit units in Domestic Tariff Areas (DTA) to buy foreign
exchange for payment for DTA supplies to SEZs.

Extension of Time
Generation of Exporter Caution List to Bank is system-driven. The Exporter’s name is
displayed in the system to mark as ‘caution’ if any of their shipping bills are not realized for the
period of 2 years and no payment extension is reported in EDPMS. Banks will have an option to
download marked ‘caution’ and use them for their further processing. Once the bill is closed or
extension given, the exporters will be de-cautioned.

Exim Bank
The Exim Bank is a financial institution and their financial instruments include Buyers’ Credit,
Corporate Banking, Lines of Credit, Investment Finance as also Project exports. In addition
their services include assistance in identifying buyers in overseas markets, advisory services
and research and analysis.

Export Credit and Insurance

Export Credit and Insurance is a financial support, guarantee and insurance support provided to
facilitate exporters. To compete in international markets, exporters need to make credit
concessions to their buyer that evidently affects their liquidity. Hence exporters need to scout
for external trade finance at soft terms post-shipment.

Operating
Risk

Political Risks Legal

Risk Involved Risk

Currency
Risk

• Operating risk - Exporters must be in the know of the buyer country requirements in
terms of industrial law or import regulations. This would differ from country to country.
Adherence to buyer country rules will help reducing operating risks.
• Political risk - Political instability in a country due to civil war or a trade embargo could
result in delays & payment defaults.
• Legal risk - Every country has its own legal requirements and processes. This could
include product liability laws, safety and health laws, dispute resolution laws etc. An
exporter must be aware of the legal requirements, failing which a legal risk would arise.
• Currency risk - Adverse changes in currency rates are common risks in doing overseas
business. This could result in loss of your earning or profit. Currency ‘Hedging’ is a way
to protect such a situation.

It is therefore essential for each exporter to understand the importance of Risk Management of
credit. It is the method of identifying, analysing, quantifying and measuring the risk potential, to
enable manage the credit activities as also mitigate higher risks in the credit process.
In doing so, it is important to:

2. Analyse Financial & Non-Financial Risks 3. Monitor Business

1. Know your Customer
and Assess Opportunities & Threats Relationship

It is necessary to select and negotiate the implementation of appropriate security tools.

Exporters need to safeguard their export proceeds in respect of any of the above-mentioned
risks which may result in payment risk on account of the overseas buyers.
Hence, credit insurance for exports hedges an exporter’s risks in this regard.

Export credit insurance schemes

Export credit insurance policies are offered by ECGC (Export Credit Guarantee Corporation,
under Ministry of Commerce) and also by private commercial risk insurance companies.

ECGC has effective schemes for

• Instruments to cover exporters on account of non-payment by the overseas buyers
• Instruments to Banks in respect of lending risk of the exporters
• Credit insurance covers after due diligence of the buyers

Visit ECGC sub Office (AC Market Complex, 9th floor, 1

Shakespeare Sarani, Kolkata)to know about their risk
coverage schemes

Take a risk assessment report on your overseas buyer

from one of the credit rating or business information
companies like Dun & Bradstreet/ Rubix Data Sciences
/any other credit rating agency

Monitor the buyers financial and non financial status

periodically even after commencing business with them.
 Step 7–Getting Export Goods Ready

Once your finance and insurance has been arranged and contract/order is in place, you need to
get your goods ready as per the standards, packaging and quantity specified in the contract and
arrange for secure storage/warehousing. Irrespective of whether you manufacture the goods or
source the goods, international standards, packaging specifications must be adhered to.
Quality control against the standards, inspection and certification are the most important
aspects for exporters and helps manufacturers navigate global market requirements more
easily and gain global market access and participate in high–level value chains.
The standards have been divided into two categories:
1. Process standards and certifications ISO, EIC etc.
2. Product standards and certifications e.g. USFDA, BIS etc

Some certification examples are mentioned below:

Export Inspection Agency:It facilitates exports through Quality Control and inspection and
covering commodities for compulsory pre-shipment inspection and certification, such as
agricultural products and food, marine, chemicals, rubber products, minerals, steel
products, jute, footwear etc. The major functions of EIA/EIC includes:
o Inspection of quality of goods

o Grant of certificate of origin

o Testing of products

Bureau of Indian Standards monitors and implements standards in India and import of
foreign products. Bureau of Indian Standards has been nominated as the organisation which lays
down the rules for various products trade in India such as household goods, cement, food &
food products.
FSSAI establishes the food safety and compliance system for food in India and some of its
compliances are drawn from CODEX. If you are importing food items, you would require to
have a FSSAI certification.

Wildlife Crime Control Bureau (WCCB) customs ensure that proper certification from
WCCB is given prior to export so that products such as tiger claws, musk deer, elephant or
rhino tusks and wild flowers are not traded internationally and WCCB checks the same from its
list of endangered species or animals.
Organic product Certification: Food products which have been farmed within the country
organically may obtain an ‘India Organic’ certification mark. This mark indicates conformity to
the standards laid down for such organic products.
ASTM International, an organisation of repute is responsible for creating, developing and
publishing technical standards for several items.
USFDA (United States Food and Drugs Administration) is the body for certifying safety
standards for all food and drugs which are consumed in the US, For example export of honey to
US would require this certification.

The Codex Alimentarius Commission develops and adopts food standards that serve as a
reference for international food trade. Protect consumers' health; Ensure fair practices in
international food trade. For example, Export of honey to EU would require this certification.

Food Standard Agency: In Britain, this is where processed food system compliances are
established and disseminated world-wide. Similarly in Australia, New Zealand, Japan, there are
several major laws governing food and agricultural products.

International Standards Organisation (ISO): This is mainly a body for the compliance of
processes in line with the standards which are established by various bodies such as ASTM,
CODEX Alimentarius etc.

REACH: Registration, Evaluation, Authorisation and Restriction of Chemicals ensures removal

and restrictions in the usage of chemicals in apparel, like Azo-dyes, stain-repelling chemicals as
also nickel and Chromium in leather items.

Federal Food, Drug, & Cosmetic Act: This certification is to ensure that the products are not
adulterated or misbranded and as per purchasers specifications. An Assam exporter exporting
cosmetics to US would require to ensure this.

Halal Certification: It is a green dot certification, states that the food or the products are
permissible in Arabian countries.

Pantone Colour standardized colour reproduction system ensures that colours follow a unique
coding system.
Evidently, Quality and adherence to Standards of export products is mandatory to enter and to
sustain in the international market as export markets have stringent rules and laws especially
with respect to export certification, logistics, ethics and social compliances and non-trade
barriers.

An Example:
Export of Ginger & Turmeric
Export of Dried ginger to USA needs to comply with the specifications on cleanliness, as
indicated by the American Spice Trade Association (ASTA) as also the (FDA). These
specifications include standards in the samples sent for analysis such as count of dead insects,
mammalian excreta, insect infestation etc. Exports of dried ginger to USA which do not
conform to these specifications are liable to be stopped and subjected to reconditioning
(cleaning to remove the defect).
Similarly banned pesticides cannot be used. Ginger additionally needs to be dried on clean
surfaces to avoid contaminations. Furthermore the packaging should be clean, dry and only new
bags must be ensured.
Organic products, especially those manufactured through environment-friendly methods, attract
a lot of attention of buyers and qualify for easy entry into international markets.

Packaging and labelling of Export Goods- Packaging is an important part in the process of
exports. Avoiding damage to your goods is the main purpose of packaging. You need to prevent
the goods from being tampered or stolen. The mode of transport that you choose would also
impact the condition of the goods while being transported. If your goods have wooden
packaging, you need to ensure the requirements for fumigation etc. Dangerous goods have a
specific type of packaging requirement and perishable goods or food would have their specific
packaging requirements.

Labelling on export goods should include the following:

o Shipper's mark and weight mark

o Country of origin
 o Total number of packages
o Handling and cautionary marks, such as ‘fragile cargo’
o Port of entry
o Labels in respect of:
o Hazardous materials
o Usage
o Recycling or disposal ofpackaging

For example, the packaging requirements for the export of honey are as follows:

o Must be kept cool and fresh

o Exported quickly
o Maintain export packaging in 300 kg drums
o Internally lacquered with food-grade material/wax coating
o Exclusion of air from the drums
o Avoid storage under conditions of high temperature

Ware housing: A warehouse for export goods is a storage premise for goods for subsequent
shipment to another country. Warehouses could be Government owned customs bonded
warehouses or private warehouses. Customs bonded warehouse (bonded warehouse) is a
licensed premise where manufacturing and other operations such as packaging, labelling and
repacking can be carried out on deferred payment of customs duty.

Pack houses: To ensure appropriate international standard and quarantine safety in exports of
agricultural and horticultural products, an integrated facility such as of pack house is very
important. This includes the following activities: cargo-handling and temporary packing and
stacking, grading, sorting washing and includes checks such as treatment, cooling, inspection
and quarantine. This assists in maintaining product standards required for quality, safety and
hygiene while also maintaining traceability.
An exporter exporting agricultural/horticultural produce, such as ginger, turmeric, chillies, fresh
fruits to EU countries must ensure registration with the State Agriculture or Horticulture wing
to identify the:
o Farmer or his farm
o Crops grown and the location thereof
o Expected production
It is imperative for an exporter to procure his stock of fruits and vegetables from such registered
farmers alone, as also assist them with mandated technical know-how as stocks from
unregistered farmers and farms will not be acceptable and liable to be rejected.

Certificate of Origin: This certificate is issued by authorized Export promotion councils and
Chambers of Commerce and is essential for exporters in India to prove that the commodities
being exported are of Indian origin and is particularly important for an exporter claiming duty
benefits against the product, based on the trade agreements signed between India and the
respective countries. The certificate is signed by the exporter and certified to be true and
correct. This has been made online. There are two categories: preferential and non-preferential. An
exporter may get it issued by FIEO or by Indian Chamber of Commerce or any other Council.

Step 8 - Shipping/Logistics Documentation

Processing of shipping documents through a Custom House Agent (CHA)

Prepare Export documents-shipping Bill/Commercial Invoice/Packing List

Despatch of Goods (Logistics) by Air/Sea/Rail/Road/Post/Courier

Obtain Customs clearances through a CHA

Obtain all Shipping documents-Bill of Lading/Mate’s Receipt, Shipping/Airway Bill

Preparing export documents and Processing of shipping documents
It needs to be ensured that there is an effective method for the timely delivery of exported items
as also there is a consistency in the delivery mechanism with a digitised monitoring mechanism
of the location of the goods, documentation coordination within the export logistics chain for
customs clearance is very important.

Container
Ports- Inland Container Container Freight
Corporation of
Air/Water/Land Depot (ICD) Station (CFS)
India (CONCOR)

Customs House
Customs Bank Forwarders
Agents (CHA)

Inspection
GST Weighment
Agencies

Clearance of goods at the Customs end needs to be handled professionally and is initiated with filing
of a Shipping-bill. The primary prerequisites for customs clearance include and commence with the
basic registrations such as IEC certificate, as aforementioned, FE dealer code, Bank account details and
reference or a licence for the concerned export promotion measures under the Foreign Trade Policy.

There is a mechanism by the Customs authorities to appoint licensed Customs House Agents
(CHA) for facilitating examination, documentation and export-import clearance of goods. Only
those who are licensed by local Customs are allowed to operate in that Customs station.
CHAs in West Bengal
The Exporters can contact Calcutta Customs House Agents' Association and get the list of
CHAs in West Bengal. http://www.cchaakolkata.org/member-details.aspx#

ASIAN FREIGHT UNIT OF ESANFREIGHT & TRAVELS PVT. LTD.

Address: ROOM NO. 10, 7TH FLOOR, COMMERCE HOUSE, 2, GANESH CH. AVENUE, KOLKATA -700 013

Phone No: 9874596096

Email ID: [email protected]

Contact Person: SURESH GOPALKA

ATLAS LOGISTICS PVT.LTD.

Address: 2/2 TOWN SHEND ROAD,1ST FLOOR, BHOWANIPUR,KOLKATA- 700025

Phone No: 9903914590 / 9836621690

Email ID: [email protected]

Contact Person: SAUMITRA PALODHI

Logistics Documentation would include:

i) Preparing invoice and packing list
ii) If goods are eligible for claiming exemption VAT /CST, exporter fills in form 15 /
Form H
iii) If goods are eligible for claiming exemption of excise duty, exporter fills in ARE1
iv) If goods are non -schedule items, a ‘no objection certificate’ from the respective office
needs to be obtained
v) If the buyer specifies, a certificate needs to be obtained called the “COO” (Certificate
of Origin) from the relevant Export Promotion Council
vi) Quality certification/Inspection certification of certain items as per requirement
 vii) Filing the shipping bill based on the nature of the export goods, namely duty free
goods/dutiable goods/goods claiming for duty drawback/duty free goods ex bond-
from bonded warehouse

Once the goods have departed from India, it is the responsibility of the exporter to ensure
submission of the export documents to the bank within a period of 21 days from the shipment
date. This enables the Bank to report to RBI of the receipt of the export documents as well the
subsequent realisation of export proceeds.

CFS (Container Freight Station): They are located within a radius of five Km of the port
wherein examination and documentation of the goods could take place. The purpose is to
decongest the port. The CFS’s have within it, Terminal Handling facilities, Customs facilities,
parking bay for trucks and most importantly CHA offices, canteens and other facilities. The
CFS could either be product specific or multi-product.

CONCOR (Container Corporation of India) handles container transportation of merchandise

throughout India. They have their own trains and rakes consisting of 80-120 wagons each
carrying TEUs from inland to port and sometimes direct to port to facilitate loading onto the
ships from there.

Forwarders: Forwarders are transporters of export import goods and their role is limited to
same. They are not CHAs but operate in tandem with them.

Ports: There are about 200 sea ports and 50 land customs in India apart from highly facilitated
cargo complexes in airports. The Government has also mooted the idea of inland waterways to
facilitate trade by using river connectivity and also by way of connecting rivers both
domestically and internationally. Railway is a major mode of connectivity. The rail connectivity
to Bangladesh is rendered to be more economical.

ICD (Inland Container Depot) facilitates the movement of goods in various land locked districts
and are located within 175 km from the main port.

An important aspect of any export consignment is weighment of goods. It is defined that the
goods should weigh exactly the same in the order with a margin of +/- 10% or as defined. Any
deviation of the system leads to disputes. Hence there are various weighment processes that are
followed which is (i) at the factory/warehouse of despatch, (ii) while on the way to the port and
(iii) at the gate of the port to check whether the weight conforms to the one as stated in the
packing list at the factory.

Ex Factory -Export Logistics Flow- Summarized

1. Export goods manufactured and ready at factory

2. Documentation readiness:
• Prepare invoice and packing list
• If goods are eligible for claiming exemption VAT /CST, exporter fills in form 15 /
Form H
• If goods are eligible for claiming exemption of excise duty, exporter fills in ARE1
• If goods are non -schedule items, a ‘no objection certificate’ from the respective
office needs to be obtained
• If the buyer specifies, a certificate needs to be obtained called the “COO”
(Certificate of Origin) from the relevant export promotion council or a designated
Chamber of Commerce.
• If the product so requires, a testing/inspection certificate of standards
• Export packages/cartons must have:
▪ Numbering in order
▪ Bar coding
▪ Shipping bill/airway bill details
3. Once the goods are at the port the exporter hands over following documents to the C&F
/CHA:
a) Invoice
b) packing list
c) ARE 1 copy
d) Any other declaration
4. On receipt of above documents, CHA files the shipping bill through Customs online
system, i.e. EDI (Electronic Data Interchange). CHA may download it from the Customs
portal called ICEGATE which is very efficient and menu-driven mechanism. This portal
also known as the “Indian Customs Electronic Gateway”, provides e-filing services to all
the stakeholders.
5. CHA files the shipping bills based on the nature of the export goods:
a) duty free goods
b) dutiable goods
c) goods claiming for duty drawback
d) duty free goods ex bond- from bonded warehouse
6. Goods may enter the dock area only upon submission of a declaration and a check list in
the format prescribed.
7. The export cargo is then weighed at the Port. This measured weight should match with
Packing list and shipping bill
8. For inspection by customs
a) Customs verifies quantity of goods and original documents are handed over to an
appraiser. The appraiser assigns an officer to examine the goods. If the officer is
satisfied, the officer issues a LEO (Let Export order)
b) If goods are already cleared at factory by manufacturer, under supervision of an
Excise officer, then ARE1 must be submitted to Customs.
c) Customs officer certifies that goods have been exported. This is used as proof of
export for releasing bond that had been executed by the exporter with Excise.
9. CHA then hands over the duly signed copy of the Shipping bill to the steamer agent
10.The officer of the Customs responsible for the loading of container / vessel, gives an
approval ‘Shipped on board’. This is endorsed on the ‘Exporters copy’ of the Shipping
bill.
11.Once goods are loaded; the vessel captain issues a ‘Mates receipt’ to the port authorities
12.Port authorities calculate the port charge and hand it over to the CHA/C&F agent.
13.CHA makes the port payment and obtains the ‘BL’ (Bill of lading) or Airway bill from
the agent of the Shipping Company.
14.Customs officer signs the hard copy prints of the original shipping bills and returns them
to the CHA
15.Once the goods have departed from the exporting country, the shipping line files the
EGM (Export General Manifest) with customs.
16.On the basis of EGM filed customs issues the EP (Export Promotion) copy of shipping
bill
17.EDI system then generates the Shipping bill and copies are signed by Customs & CHA
18.Once the shipment formalities are completed, the exporter negotiates the export bill
through his Bank (authorized dealer) within a prescribed period of 21 days from the
export date.
19.The negotiating bank scrutinizes the shipping documents and forwards them to the
importer’s banker to enable him to clear the shipment.
20.The authorized dealer bank then ensures receipt of export proceeds and then issues e-
BRC (Electronic Bank Reconciliation Certificate)
21.Exporter submits proof of export (signed ARE1) to Central Excise and gets the export
obligation discharged. The export process is then complete.
 Step 9–Export Closure and Claiming Export benefits

Negotiate Shipping documents with your Forex dealing Bank

within 21 days

Obtain Customs clearances through a CHA

On departure of the goods from India, the shipping bill is submitted to the Customs
Commissioner. Upon verification, the Customs hand over one copy of the Shipping bill known
as the ‘Exchange Control or EC Copy’ for onward submission by the exporter to the Bank
within a prescribed period of 21 days from export for negotiation of shipping documents. The
export data is transmitted electronically to the RBI server through the ICEGATE (Indian
Customs EDI Gateway). Software exporters submit Softex forms in duplicate to the STPI/SEZ
for certification within a prescribed 30 days period and transmitted in an electronic format to
RBI.

Claiming DGFT Benefits: An application for claiming incentives/benefits under

DGFT Schemes has to be filed online with a digital signature.

An authorisation for duty free import of raw materials and any other inputs required in the
manufacture of export goods as also capital goods (machinery) is available for manufacturers
and merchant exporters from the DGFT offices.

Step 10 - Reviewing the first consignment

1 Obtain Feedback from your Buyer

2 Consider Value Addition of your Product

Feedback is an essential element of exports and this exercise would assist you to improvise,
modernize your products and processes to enable you to penetrate your export markets further
as also to venture into newer markets. It will also help modify and improve on internal policies
and processes.

Value addition to your product will provide you with a competitive advantage. For instance, if
you are exporting ginger, production of a powdered form or flakes to fill a niche market can
potentially be sold at a premium by marketing it to specific consumers and businesses.