Important Steps to follow for Export Business

1.  Select Name of the Company

2. Type of Organisation

a) Proprietor          b) Partnership           c) Limited Company         d) LLP

3. Current Account in the Name of the Company

4. Get I.E.Code

5. Export Promotion Councils (EPC) – Join as a member of EPC and avail services and benefits

6. Identify the Importers or Buyers

7. How to fix Export Price

a) F.O.B.  – Free on Board                         b) C & F – Cost and Freight

c) C.I.F – Cost Insurance and Freight     d) Price to be quoted in US Dollar / Pound / Sterling /Euro / Yen

8. Date of Shipment / Date of Delivery

The buyer will send the quantity of goods,due date for sending the goods up to the port after finalising the price.

9. Mode of Payment

Advance Payment through Letter of Credit (LC)

3 types of LC:-

a) Revocable LC & Irrevocable LC

b) Recourse LC  & Withut Recourse LC

c) Confirmed LC & Unconfirmed LC

It should be Confirmed, Irrevocable, without Recourse LC

10. Mode of Payment another type

Document against Payment ( D.P)

Document against Acceptance ( D.A)

11. Export Order  / LC

Price ( Sea port /  Airport to be mentioned)

Date of Shipment

Mode of Payment

Forward Contract from the bank

12. Insurance

Get Small Exporters policy from (E.C.G.C)

This Policy will cover Buyer’s Risk, Country Risk, Water Risk.

13. Bank Loans

14. Sourcing

15. Packing

16. Arrange to send the goods by ship / air

17. Exports Documents

Coomercial Invoice, Packing List, Bill of Lading, Certifications.

18. Can get second loan for Export

Post Shipment loans – Bills Purchase.