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.
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