Export Procedure Flow Chart

Topics: International trade, Export, Import Pages: 34 (9322 words) Published: August 31, 2012
Export procedure flow chart

Prepare a Business Plan

Select a name for organization

Registration under Company Act

Open a bank account

Product selection for Export

Market Research

Product Evaluation

Registration with Director General of Foreign Trade to get IEC number

Registration with the relevant export promotion council Market Identification

Registration with Sales Tax Office

Registration with Export Credit Guarantee Corporation

Registration with relevant Chamber of Commerce to get certificate of origin

Need Analysis

Channel Selection

Agents/Distributors/ Wholesalers/ End User s/ Sales Reps

Identifying the Potential Buyers / Customers

Trade Fairs/Internet/ Personal Visits/Contacts/Agents

Going for procuring orders

Agreeing upon pricing, document ,freight charges, currency ,delivery etc

Signing of contract

Determining the payment terms

Advance Payment/ Letter of Credit (LC) / Open Account Consignment

Importer sends purchase order


Packaging, warehousing

Certificate of quality control

Bank sends docs to importer’s bank .payment is done

Submission of docs to banks

Transportation Maritime / Air / Road / Rail

Insurance certificate, shipping bill, Mate’s Receipt, Bills of lading, Airway bill, Packing list , customs invoice etc

Prepare marine, air, and docs

In the case of first time exporters –importers ,they need to apply to the Director General of Foreign Trade (DGFT) regional office for getting Importer-Exporter Code (IEC) Number.

Step 2
The exporter has to register with the concerned export promotion council in order to obtain various permissible benefits given by the government. ,they need to get registered with sales tax office, and even Export Credit Guarantee Corporation.

Step 3
The exporter can now go in for procuring orders, by first sending a sample, if required. The importer sends a purchase order once both exporter and importer have agreed upon the terms and conditions of the contract like pricing, documents, freight charges, currency etc.

Step 4
With export order in hand, the exporter starts manufacturing goods or buying them from other manufacturers.

Step 5
The exporter makes arrangements for quality control and obtains a certificate confirming the quality of the goods from inspector of quality control.

Step 6
Exportables are then dispatched to ports/airports for transit.

Step 7
The export firm has to apply to an insurance company for marine/air insurance cover.(The exporter asks the importer to take marine/ air insurance under cost and freight , free on board etc., terms of contract.)

Step 8
The exporter contacts the clearing and forwarding agent (C & F) for storing the goods in warehouses. A document called Shipping Bill, required for allowing shipment by Customs Authority is presented by the forwarding agent.

Step 9
Once the goods are loaded into the ship ,a receipt called ‘Mate’s Receipt ‘ is issued by the captain to the ship superintendent of the port.

Step 10
The superintendent calculates port charges and handover to the exporter /C&F agent.

Step 11
After making the port payments , the C&F agent or exporter gets the Bills of Lading or Airway Bill from the official agent of the shipping company or the airline

Step 12

The exporter applies to the relevant Chamber of Commerce for obtaining Certificate of Origin, stating that the goods originated from India.

Step 13
The exporter sends a set of documents to the importers, stating the date of shipment ,name of vessel ,etc.

Step 14
Within 21 days after shipment the exporter must present all the documents at his bank which scrutinizes these documents against the original letter of credit /purchase order.

Step 15
The exporter’s bank sends these documents to the importer’s bank which should make the payment on of before the due date.

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