Export consist of two words. Ex and Port. When any goods move out from any port of the home country, the goods become ex at that port and we call it export. Export means selling goods and services for profit to overseas buyers. Export is a very interesting topic and doing this, an exporter can get an opportunity to interact with a folk of people with different talents and can have good experience.
I am going to share my experience through this blog for my journey of export till date started 6 years back.
There are two ways for learning;
- Learn from your own hard earned experience by experimenting the target field that is true learning but it needs significant time and handsome money investments.
- Learn from other`s experience that will save your time and money.
I will try to give you some insights on export and import in terms of learning and will share my hard earned experience with you to take inspiration that can show you the possible direction especially for beginners and unexperienced exporters.
The word export looks very catchy and attractive but the scenario is completely different. The word export demands its lovers to gather lot of courage and request them to get ready to face acute pain as soon as he / she goes in. While writing this, I do not intend to make beginners willing to come in the field of export feel nervousness but would want them to stand as rock and fight any hurdle coming on the way to make them own way to reach the destination.
If we talk about what it is export? There are various definition and I will mention few below;
What is export?
Export is to ship goods and services from the home country to overseas buyers. In simple words, export is to take goods to foreign countries by sea, Land and air against the legal transaction of Money.
Export is nothing but to take the goods and services to overseas for profit. There is another thing of definition for transferring the risk and ownership from exporter to importer as well. Transferring of risk varies depending on incoterms contracts agreeing between exporters and Importers which will be detailed altogether in another coming blog.
Sellers of goods and services is referred as exporter who is based in the host country and overseas buyers of the same is termed as importer who is based in guest country.
Exporting of goods could be regular products, seasonal products and rare products also. Seasonal products mean that the products are made for particular season like warm garments for winter.
Goal of export
- An exporter can earn Foreign exchange that will help our country`s economy to improve as well to some extent. This is the biggest motivator for the export where he/she will be earning some profit and will be participating in increasing the economic condition of the country in good faith.
- An exporter will meet with various people and organizations and will exchange loads of ideas.
- An exporter who is already doing business in the domestic market will have an opportunity to expand its clientele and revenue base in the global market with putting some extra effort to find out a new market for the products established in the domestic market.
- (For Instance; if a company is doing well in selling at domestic market successfully, there is a good chance for that product to be successful in markets abroad, wherever similar demands exist.)
- Exploring new horizon of Language and culture and mingling with each other for a better understanding of the market.
- Finding out a new way of brand growth.
Who can export?
- Anyone who is willing to export needs to have IEC Code (Importer Exporter Code) issued by DGFT. (To Get IEC code, you can visit this. If any further information needed on the above, I may help you more to get the same)Anyone who has identified the exportable products and is ready to take the risk
- Anyone who wants to earn foreign exchange and wants to help the nation in economic growth.
- Anyone who wants to try his luck.
- Anyone who is continuously updating himself/herself on global scenario of business.
Planning of export
Before you start exporting, plan well and identify the products for export. You can do some research pertaining to demand and supply. Also, choose a target country where you want to export.
My experience on this is that I started like an unguided missile and it took me a long time to identify and define the product for export. In result, I have wasted a lot of quality of time and money and out of an experience, I decided some products to export later.
This is strongly advisable to plan well and choose a suitable product for export to avoid waste of valuable time and loss of hard-earned money.
What products to be exported
There are classes of products coming under different categories and we can identify which products are allowed to be exported and which products are not allowed to be exported.
Classes of Export trade items
- Free export
It means all the goods listed as “FREE” category can be exported freely and no extra export license except IEC code is required.
- Prohibited Goods
Any item which is on the list of a prohibited category is not allowed to be exported by the exporter.
- Restricted Goods
Any item listed in the restricted category is only allowed for export under specific export license guaranteed by the concerned authority.
- State trade Enterprises
In this case, only government agencies and the likes are allowed to export.
The question will be arising in your mind that how can we know which item comes under which category, Yes it is a brilliant question and you can find out the same on DGFT website entering HS Code. HS code is a harmonized code for a commodity to identify each item at international level for bilateral business at ease. On HS code, I will have a separate blog in detail)
Where to be exported
Along with other things like planning, identifying exportable products, it is also necessary to find out a suitable market where to be exported. (How to find out the market for a specific product, there will be spate blog)
What are stakeholders?
An act of export involves any person or organizations directly or indirect. The fact that facilitators involved in activities of the export process are termed as stakeholders playing a role of pillars where we can build our building of the export.
They are numerated as below;
- Exporter ( seller of goods)
- Importer ( buyer of the goods)
- This can be further elaborated as below;
- Transport service providers
- Freight forwarders
- Banks
- Insurance providers
- Custom clearance agents
- Authority – Custom authority, Environment authority, Standards and Chamber of commerce etc.
Conclusion
Export of goods and services promotes the domestic product across the globe and strengthen the economic situation of the country and it provides a scope for the exporter to explore new market for their products and get them benefitted. If you are interested to explore the horizon of export, you do not need to think more of perfection and nobody is perfect in this world, just start experimenting and the rock the world.