Import-export, explained simply.

Export is the sale of goods or services from one country to a buyer in another country. The exporter is responsible for producing or sourcing the goods, meeting the buyer’s specifications and complying with the rules of both countries.

• Brings foreign exchange into the business
• Opens access to larger markets
• Requires documentation and compliance

Import is buying goods or services from another country and bringing them into your own. The importer pays any applicable customs duties and must meet local standards before goods are cleared.

Start by choosing a business structure, completing registrations (PAN, GST, IEC, bank account with AD Code, and RCMC where relevant), then select a product, research markets and find verified buyers.

• Set up the entity and registrations
• Pick product and target market
• Build a credible brand and website
• Reach and verify buyers

Choose products where you have reliable supply, consistent quality and a cost advantage. Check global demand, competition, restrictions and certification requirements before committing.

• Supply reliability
• Healthy margin after all costs
• Clear demand in target markets
• Manageable compliance

Buyers can be found through trade fairs, export promotion councils, B2B marketplaces, trade directories, embassies, LinkedIn and targeted email outreach backed by a professional website.

Verify the company’s registration, website domain age, physical address, trade references and import history. Be cautious with buyers who push unusual payment routes or urgency.

• Check official business registries
• Ask for trade references
• Prefer secure payment terms with new buyers

Add product cost, packaging, labelling, inland transport, handling, customs clearance, bank charges, finance cost and your margin. Then add freight and insurance depending on the Incoterm you quote.

• EXW = cost + margin at your premises
• FOB = EXW + local costs to vessel
• CIF = FOB + freight + insurance

Incoterms are standard trade terms published by the International Chamber of Commerce. They define who pays for what and where risk passes from seller to buyer. The current edition is Incoterms 2020.

Ex Works: the seller makes goods available at their premises. The buyer handles loading, export clearance, freight and all risk from that point. Lowest responsibility for the seller.

Free On Board: the seller delivers goods cleared for export on board the vessel at the named port of shipment. Risk passes to the buyer once goods are on board. Used for sea freight.

Cost and Freight: like FOB, but the seller also pays sea freight to the destination port. Risk still passes when goods are loaded on board at origin.

Cost, Insurance and Freight: the seller pays freight and minimum marine insurance to the destination port. Risk passes to the buyer once goods are on board at origin.

Minimum Order Quantity is the smallest order a supplier will accept. It protects margins and production efficiency, and is often linked to container loads or production batches.

The Harmonized System code is an international product classification used by customs worldwide. The first six digits are global; India uses an eight-digit ITC-HS code. It determines duties, restrictions and statistics.

The Importer Exporter Code is a 10-character code issued by the DGFT. It is mandatory for most import and export businesses in India and is linked to the business PAN.

Goods and Services Tax is India’s indirect tax. Exports are treated as zero-rated supplies: exporters can ship under a Letter of Undertaking (LUT) without paying IGST, or pay IGST and claim a refund.

The Authorised Dealer Code is a code from your bank that must be registered with customs at each port you export from. It links shipping bills to your bank for foreign exchange tracking.

The Registration-cum-Membership Certificate is issued by an Export Promotion Council or commodity board. It is needed to claim many benefits under the Foreign Trade Policy.

A preliminary invoice sent before shipment that confirms price, quantity, specifications and terms. Buyers often use it to arrange payment, import licences or a letter of credit.

The final bill for the goods, showing seller, buyer, description, HS code, quantity, value, currency and Incoterm. Customs in both countries rely on it to assess duties.

Details how goods are packed: number of packages, contents, net and gross weights and dimensions. Used by customs, forwarders and the buyer to check the cargo.

Certifies the country where goods were produced. A preferential certificate can let the buyer claim reduced duty under a trade agreement.

The main export declaration filed with Indian Customs, usually electronically through ICEGATE by a customs broker. Goods cannot leave without it being cleared.

Issued by the shipping line for sea freight. It is a receipt for the goods, evidence of the contract of carriage and — when negotiable — a document of title needed to collect the cargo.

The transport document for air freight. It acts as a receipt and contract of carriage but, unlike a Bill of Lading, it is not a document of title.

The buyer pays fully or partly before shipment. It is the safest option for the exporter but the riskiest for the buyer, so it is common with small or first orders.

A bank’s promise to pay the exporter when documents that exactly match the LC terms are presented. It balances risk for both sides, but discrepancies can delay payment.

Banks exchange shipping documents for payment (D/P) or for acceptance of a bill to pay later (D/A). Cheaper than an LC, but banks do not guarantee payment.

Goods and documents are sent first and the buyer pays later, often 30–90 days. Most attractive to buyers and riskiest for exporters; best with trusted partners or credit insurance.