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Export

Top 10 export products from India you must know

Top 10 Export Products from India and Its top Export destinations

India is one of the top exporters for various products into world and today we will discuss top 10 products being exported from India to its top export destinations. Our focus will remain on two stuffs; one is to identify top export products and second to identify top destinations for those top products.

My previous topics talk about Introduction to Export, Learning Insights on Import and Impact of GST on Export

 In this article, we will discuss top 10 products exported from India and top 5 countries for each of 10 products imported from India along with some explanatory data like ranking in India and in the world and % of exports from India and from the world etc.

Let us check few facts of exports made by India. Export data of India shows a positive progress and get continuous increase from last 8 months. The exports done in May 2017 exceed the exports made in May 2016 by 8.3%, although the monthly performance of Exports in May 2017 compared to April 2017 are declined by 2.5%. The cumulative exports of April- May 2017 performed well and got increased by 13.83%.

Now we will find out what top products are exported from India and top markets where those top products are exported.

Top 10 products exported from India in 2016

We will see here top 10 products exported by India, top 5 export destinations and India`s export ranking in the world export of these products ;

1- Gems, precious metals

Entire exports made by India into world is $ 42.290 billion. India has secured 19th position in the world export ranking for this products. The share in world export is 1.6%.

Top countries importing this product are ;

i- United Arab Emirates

ii- Hong Kong China

iii- Unites States of America

Iv- Belgium

v- Israel

i- UAE is the biggest importer of this product in dollar value from India and imports 31.4% of India`s total export and 6.1%  from world to meet its requirement.

ii- Hong Kong China comes to second number and imports 28.5% of India`s total export from India and the balance 10.8% from other exporting countries.

iii- USA which is the third largest import from India and 5th largest importer from the world, imports 23.5% of India`s total export and 10.5% of world imports.

iv- Belgium which is the fourth largest importer from India by getting 8th ranks in world import, imports 2.8% of India`s total export and 2.8% of total world Imports.

 v – Israel come on 5th in the list and import 21.2% of India`s total export and comes on 16th rank in world import by importing 1.2% of total world import.

2- Mineral fuels, mineral oils and products of their distillation

India has exported $ 27.715 billion and got 18th ranking for this product by contributing 1.8% share in the world export.

The top 5 importing countries for this product are numerated below;

i- United Arab Emirates

ii- Singapore

iii- United States of America

iv- Gibraltar

v- Oman

i- UAE which is one of the top 5 importer countries of this products from India and 30th importer from world- imports 13.3% of India`s total export from India and 0.6% of world import. Tariff – import duty, faced by UAE against the product imported from India is 5%. (Tariff will be explained in a separate blog in detail)

ii- Singapore which takes second position for the product to import from India and 8th position from the world, imports 12.6% of India`s export and 3.3% of world Imports.

iii- USA comes as third largest importer of the product from India and second largest importer from the world. USA imports 7.1% of India`s total export and 10.5% of world imports. Tariff faced against this product exported by India for USA is 1,2%.

iv – Gibraltar which is the 4th largest importer of the product from India and 39th from other exporting countries imports 6% of India`s total export and 0.5% of world imports.

v- Oman which comes on 5th from India and 67th from the world imports 4.8% of India`s total export and 0.1% of world imports to meet its domestic needs.

3- Vehicles other than railway

The third largest product amounting to $14.99 billion exported by India makes 1.1% shares in world export and gets 21st export global ranking. India`s share in the total world export of this product is 1.6%.

5 top export destinations of this product by India are ;

i- Mexico

ii- USA

iii- Nepal

iv – Bangladesh

v- United Kingdom

i- Mexico which is one of the top importers of this product  imports 12.2% of total exports made by India and 2.8% of total world imports. The ranking of the country among importing countries for this product is 10th. The tariff faced by Mexico against the product is 20.2% which is a bit high.

ii- USA which is the number two importer of this product from India and number one importer from other exporting countries, imports 8.7% of the entire exports made by India and 21.1% of the total made by the world. The tariff faced by USA against the product exported by India is 3.1%.

iii- Nepal participated 4.9% of total exports of India and 0.06% of the total world import gaining 91st rank in the world import. The tariff faced by Nepal against the product exported by India is 52.3% that is huge and it will increase the landing cost much in Nepal.

iv- Bangladesh is the 4th largest importer of this product from India and 68th importer from the world. India’s export to bangladesh is 4.4% of its total export of the product while the share of imports of Bangladesh from the world is 0.1%. The tariff faced by Bangladesh against the product exported by India is 16.1%.

v- United Kingdom which is the 5th largest importer of this product from India and 3rd largest importer from the world imports 4.2% of India`s total export and 5.6% of world`s total imports. The tariff faced by UK against the product exported by India is 8.2%.

4- Machinery, mechanical appliances, nuclear reactors, boilers; parts the

This is the 4th top product exported by India for $ 13.557 billion which is the 5% of total world exports for this product. The product is positioned at 25th in the world export ranking along with the 0.7% share in world export.

Top 5 countries import the product are;

i- United States of America

ii- United Arab Emirates

iii- United Kingdom

iv- Germany

v- Turkey

i- USA is the number one importer from India well as from the world imports 13.9% of India`s total export and 16.2% of world imports. The tariff faced by USA against the product exported by India is 0.1% that is very minimal and favourable for USA.

ii- United Arab Emirates who is the second largest importer from India and 23rd from the world imports 4.9% of India`s total export and 16.2% of world total imports. The tariff faced by UAE against the product exported by India is 4.1%.

iii- United Kingdom which is the 3rd largest importer from India and 4th largest importer from the world imports 4.8% of India`s total export and 3.9% of world total imports. The tariff faced by UK against the product exported by India is 0%.

iv- Germany which is the 4th largest importer from India and 3rd largest importer from the world imports 4.8% of India`s total export and 7% of world total imports. The tariff faced by Germany against the product exported by India is 0%.

v- Turkey which is the 5th largest importer from India and 19th largest importer from the world imports 3.7% of India`s total export and 1.4% of the total world  imports. The tariff faced by Turkey against the product exported by India is 0%

5- Pharmaceutical products

Pharmaceutical products is the top export product made by India and the industry is booming very fast. India has exported $ 13.042 billion imported by top countries numerated below;

i- United States of America

ii- United Kingdom

iii- South Africa

iv- Nigeria

v- Russian Federation

i- USA is the 1st largest importer of pharmacy product from Indian as well as from world. It imports 39.8% of India`s total export and 17.4% of total world imports for this product. The tariff faced by USA against India`s pharmacy Product is 0%.

ii- United Kingdom  is the 2nd largest importer of pharmacy product from Indian and 4th largest importer from world. It imports 3.6% of India`s total export and 6.2% of total world imports for this product. The tariff faced by UK against India`s pharmacy Product is 0%.

iii- South Africa is the 3rd  largest importer of pharmacy product from Indian and 44th importer from world. It imports 3.2% of India`s total export and 0.4% of total world imports for this product. The tariff faced by SA against India`s pharmacy Product is 0.1%.

iv- Nigeria is the 4th largest importer of pharmacy product from Indian and 74th importer from world. It imports 2.7% of India`s total export and 0.1% of total world imports for this product. The tariff faced by Nigeria against India`s pharmacy Product is 0.0%.

v- Russian Federation the 5th largest importer of pharmacy product from Indian and 13th largest importer from world. It imports 2.6% of India`s total export and 1.7% of total world imports for this product. The tariff faced by Nigeria against India`s pharmacy Product is 4%.

6- Organic chemicals

$11.253 billion exported by India makes 2.6% shares in world export. Organic chemical gets 11th ranking in the world export. India is the 6th largest exporter and 5 top export destinations are;

i- United States of America

ii- China

iii- Germany

iv- Japan

v- Netherlands

i- USA which is the top importer from India as well as from the world imports 12.4% of India`s total export and 13.2% of total world`s import. The tariff faced by USA against the product exported by India is 1.4%.

ii- China which is the second largest importer from India as well as from the world imports 7% of India`s total export and 11.6% of total world`s import. The tariff faced by China against the product exported by India is 5.2%.

iii- Germany which is the 3rd largest importer from India and 4th largest importer for the product from the world imports 4.8% of India`s total export and 8.1% of total world`s import. The tariff faced by Germany  against the product exported by India is 4.3%

iv- Japan which is the 4th largest importer from India and 6th largest importer for the product from the world imports 3.5% of India`s total export and 3.8% of total world`s import. The tariff faced by Germany  against the product exported by India is 0%

v- Netherlands which is the 5th largest importer from India and comes on 9th largest in the world, imports 3.2% of India`s total export and 3.6% of total world`s import. The tariff faced by Germany  against the product exported by India is 4.3%

7- Apparel and clothing accessories

Export of Garment and clothing is the backbone for India. Many people works in this industry in domestic market as well as for export. India has exported 7.910 billion which is 3.6% of total world export with securing 6th rank in the world export.

Top 5 export destination of Apparel for India are below;

i- Unites States of America

ii-United Arab Emirates

iii- United Kingdom

iv- Spain

v- Germany

i- USA which is the top importer from India as well as from the world imports 23.4% of India`s total export and 19.4% of total world`s import. The tariff faced by USA against the product exported by India is 10.7%.

ii- UAE which is the 2nd largest importer from India and comes at 11th as importer from the world imports 18.3% of India`s total export and 2.2% of total world`s import. The tariff faced by UAE against the product exported by India is 5%.

iii- UK which is 3rd largest importer from India and placed at 4th from the world, imports  9.4% of India`s total export and 6.1% of total world`s import. The tariff faced by UK against the product exported by India is 9.2%.

iv- Spain which is the 4th largest  importer from India and gets 6th rank from the world imports 5.9% of India`s total export and 4.7% of total world`s import. The tariff faced by Spain against the product exported by India is 9.2%.

v- Germany which is the 5th largest  importer from India 2nd largest importer from the world, imports 5.8% of India`s total export and 8.8% of total world`s import. The tariff faced by Germany against the product exported by India is 9.2%.

This is worth mentioning that the above product does not include knitted, if the same is covered, the UAE is the 1st largest importer, Germany 4th and  France 5th largest importer.

8- Electrical machinery and Its equipment.

$ 8.217 billion exported by India is 0.4% shares and comes on 32nd rank in world export. The product being imported by top 5 countries are below;

i- United State of America

ii- United Arab Emirates

iii- Germany

iv- China

v- United Kingdom

i- USA which is the top importer from India and 2nd largest importer from the world, imports 14.2% of India`s total export and 13.5% of total world`s import. The tariff faced by USA against the product exported by India is .1%.

ii- UAE which is the 2nd largest importer from India and 22nd largest importer from the world, imports 9.2% of India`s total export and 0.9% of total world`s import. The tariff faced by UAE against the product exported by India is 2.6%.

iii- Germany which is the 3rd largest importer from India and 4th largest importer from the world, imports 4.9% of India`s total export and 5.3% of total world`s import. The tariff faced by Germany against the product exported by India is 0.5%.

iv- China which is the 4th largest importer from India and number 1 largest importer from the world, imports 4.7% of India`s total export and 16.6% of total world`s import. The tariff faced by China against the product exported by India is 4.6%.

v- UK which is the 5th largest importer from India and number 11th largest importer from the world, imports 4.7% of India`s total export and 2.3% of total world`s import. The tariff faced by UK against the product exported by India is 0.5%.

9- Iron and steel

India has exported $ 6.436 billion which is 2.1% of world export and 14th rank in world export. Iron and Steel industry is one of the most important industry in India stands third largest producer of raw material. Iron and steel is produced from Iron ore which is itself exported in good amount. Iron and Steel has a good demand in domestic market as well.

The top 5 countries importing Iron and Steel from India are;

I- Italy

ii- Nepal

iii- Belgium

iv- Bangladesh

v- United Arab Emirates

i- Italy  which is the top importer from India and 4th largest importer from the world, imports 7.9% of India`s total export and 4.7% of total world`s import. The tariff faced by Italy against the product exported by India is 0.3%.

ii- Nepal which is the 2nd largest importer from India and 72nd largest importer from the world, imports 7.9% of India`s total export and 0.2% of total world`s import. Nepal depends on Indian Iron and Steel products majorly.The tariff faced by Nepal against the product exported by India is 11.3%.

iii- Belgium which is the 3rd largest importer from India and 8th largest importer from the world, imports 7.8% of India`s total export and 3.1% of total world`s import. The tariff faced by Belgium against the product exported by India is 0.3%.

iv- Bangladesh which is the 4th largest importer from India and 36th largest importer from the world, imports 5.8% of India`s total export and 0.7% of total world`s import. The tariff faced by Bangladesh against the product exported by India is 2.9%.

v- United Arab Emirates which is the 5th Largest importer from India and 29th largest importer from the world, imports 5.5% of India`s total export and 0.9% of total world`s import. The tariff faced by UAE against the product exported by India is 5%.

The notable point here is UAS although comes on 1st or 2nd largest importer always hear fails to secure its inclusion in the list of 5 largest importers and it is the 6th largest importer of the product from India and 2nd largest importer from the world.

10- Cereals

Cereal is a part of aggro products consisting of  Barley, Broken Wheat, Buckwheat, Chia seeds, corn flakes, cracked wheat, wheat, flaked rice, macaroni and maize. India is leading exporter of agro products including rice on large scale.  The $ 5.554 billion exported by India makes the share of 5.9% shares of world export. India is the 10th largest exporter and gets 6th ranking in world export.

The top 5 importer countries are ;

i- Saudi Arabia

ii- United Arab Emirates

iii- Iran

iv- Irag

v- Nepal

i- Saudi Arabia is 1st largest importer from India with the rank of 15th in world export. It imports 12.8% of total India`s export and 2.1% of total world imports.

ii- United Arab Emirates is the 2nd largest importer from india and is on 23rd ranking in world imports. 11.8% imported by UAE from India is the 1.3% shares of world imports.

iii- Iran – a third largest export destination imports 9.1% of total India`s export and 2% share in world imports. Iran is ranked at 16 to import from the world. The tariff faced by Iran against the product is huge that is 35.7%.

iv- Iraq for few years is largely depending on India`s product and imports 7.4% of India`s total export and 0.6% of world imports. Iraq is the 4th largest importer from India and 41st from the world.

v- Nepal to a great extent depends on India to meet its domestic requirement and imports 5.2% of India`s total export and 0.3% of world imports. Nepal is considered to be 5th largest importer from India while it is on 65th ranking in world importers.

Conclusion

An exporter can get insights which products are to be picked to work out and give its start and can target which country is more suitable to export. The products categorized in top lists are based on 2 level HS code & Tariff mentioned against each product is averaged one.  

Categories
Export

Impact of GST on Export

Let us discuss today how the GST newly implemented in India is going to affect Indian exporters and Indian export market. There is nothing to worry on GST that will get an positive impact for Indian exporters and the export market if understood correctly. Let us experiment it boldly and apply the same in the correct form to get benefited.

 India’s exports sprouted at its swift pace in these recent years by 4.6% to $ 284.55 billion during the financial year 2016-17, regardless of the demonetisation ferry that actually decelerate domestic economic activity since November.

In March, exports had risen to a hoop from 26.6% to $28.23 billion after clocking a 16.5% jump in February, government surveys also showed that shipment of petroleum products jumped by 70% while engineering goods were up by 48%. India’s rank is 19th out of 30 top exporters worldwide shows the predominance of our export industry. That is why the impact of GST on Export industry is very noteworthy.

  1. What is GST

In simple words, we can say that GST is a tax that is levied on the consumption that is enforced on manufacture sale and consumption of goods & services at a national level. This kind of tax will remain same for all indirect tax levied by state and central government. It is a noteworthy consideration that after introduction of GST some taxes like income tax exports tax, corporate tax including capital gain tax will not be affected in any manner. GST will incorporate of:

  • Centre will levy CGST which is known as Central GST.
  • State will levy SGST which is known as State GST.
  • Lastly the Integrated GST (IGST) that can be will be charged by Central Government on inter-State supply of all goods and services.
  1. Impact to Exporters and Export Industry After Introduction of GST
  • The Feature of input tax credit in GST

The GST will able to assuage the cascading effect of the numerous taxes under the current system of tax. The prerequisite of input tax credit will be accessible to exporters even in the case of state taxes (SGST), which is basically not available to the exporters under the previous tax regime. In other words, one can say that, an input tax credit explicit that while paying tax on the output, one can accentuate the tax that has already been paid on inputs. Accordingly, one does not pay the same tax twice and alternative he can pay only the amount of tax on the value addition done.

This consideration by the government will bring down the costs of inputs and the amount of taxes paid by the exporters. Ultimately this will reduce costs and act as an incentive for the exporters.

  • Spectacular benefits to the exporters:

One of the major benefit to the exporters is that by the incorporation of Central and State taxes in GST with intact set-off on input goods and services and curtailing out of Central Sales Tax (CST) will diminish the cost of locally manufactured goods and services resulting in huge margins to the exporters. As a result, the competitiveness of Indian goods and services in the international market will be increased and Indian exports will be encouraged. This kind of unanimity in tax rates will ultimately bring hassle- free experience across the country which ultimately helps in curtailing the compliance cost.

  • Export schemes such as MEIS and SEIS will consolidate Export Industry

As far as the schemes are considered in India, the Merchandise Exports from India Scheme (MEIS) and the Services Exports from India Scheme (SEIS) that will sustain even after the execution of the GST. Subject to these schemes, exporters with a conclusive amount of turnover are furnished with duty credit scrips. These scrips will empower you for the exemption of duties paid on the import of raw materials. The amount of exemption is explicit as a percentage of the total turnover of the exporter. This will lead to increased benefits to the exporters.

  • Looking Towards the duty drawback scheme

As far as the duty drawback scheme is concerned, the major advantage of this scheme is that the exporters can easily get the refund of the customs and excise duties that are paid on the imported items. The GST legislation has specified the limitation on some of the imported items. So, inference can be drawn that you will get refund of the taxes paid on both imported as well as domestic inputs. This will ultimately benefit the small exporters who are placed in the remote areas where availability of raw material become a headache for these traders.

  • Zero GST rate on exports

This factor will impact the industry in a constructive mode. The complaints of exporters have been meticulously handled, and the aggregate impact of these measures is going to fabricate Indian exports more competitive in the international markets, and give a jostle to the export business in India.

  1. Number of forms to present to get excise tax and sales or VAT refunded

There are four different kinds of forms that are required to be submitted for the refund of the excise and sales tax and they are:

  • C-Form
  • F-Form
  • H-Form
  • ARE 1- Form
  1. Forms required under GST regime of tax for the refund on exports

ARE 1- Form is a form that is submitted to the concerned department for the refund of imports but not it has been removed after the introduction of GST except in cases of commodities to which provisions of Central Excise Act would continue to be applicable.

As discussed earlier that after implementation of GST regime exports would be reckoned at zero-rated supply. Any person asking for the GST refund on exports have the following options namely:

(a) Any person can provide goods or services under any Undertaking or bond with such conditions as may be prescribed in the legislation, without payment of integrated tax and can hold refund of unexploited input tax credit; or

(b) Any person can provide goods or services or both, with such conditions, as may be described, by the payment of claim refund and taxes that are integrated to be paid on goods or services or both supplied, giving due consideration to the provisions that are mentioned in section 54 of the Central Goods and Services Tax Act or the rules provided in the Refund Rules, 2017.

  • If someone belongs to the option (a):

There is a procedure to file refund that has been simply mentioned in the Refund Rules under GST. The exporter asking for the refund of IGST will have to file an application electronically through the Common Portal. Additionally, with the application one has to provide all the relevant documentary evidences as described in the said rules.

  • If someone belongs to the option (b):

The shipping bill claimed by an exporter shall be considered as the application for the refund of integrated tax paid on the goods exported out of India.

Additionally, for both the options as mentioned above, the exporters have to furnish the details of GST invoice in the Shipping bill.

  1. GST as a Replacement for all taxes

The Goods and services tax is a common and uniform indirect tax that should be taxed on all the goods and services produced through exports as well as through imports.  In other words, we can say that GST will be a common platform for all and a single indirect tax which will treat India as one market place. It simply substitutes all the Central as well as state indirect taxes like excise, customs, VAT, state excise, etc

Categories
Import

How to start an import business in India

What is import?

Import includes two words “IM” plus “PORT”. If we add “Im” as prefix to Port, it becomes Import. The word “Im” is mainly prefixed to any word to negate anything like possible and impossible but here this is not in the same spirit but it relates to negativity meaning imports are not considered well enough for the country for various reasons.


Import means, goods are brought to the home country from foreign countries. The purpose of the import would vary. Import of some goods happens to fulfill the domestic requirement and sometime goods in form of raw material imported is to produce a finished goods for export purpose.

If the import of any raw material to use in making finished and final goods for export is encouraged by the government since it increases the economy of the country while importing finished goods for the consumption in the domestic market is not always encouraged except that goods would be too less to meet the basic needs of residents of the country.

Why import is not appreciated most of the time

In case of import, the payment of import happens in foreign currency especially in USD which caused in decreasing of foreign deposit. When foreign deposits decrease, the domestic currency gets weakened resulting in inflation and negative impact on the home country`s economic.

What impact an import does

If the imports of a country exceed exports, it shows a trade deficit in negative. The negative trade deficit indicates the payment of foreign currencies is more than receipt of the foreign currency. Due to this impact, a country prefers to be supplier to other countries than buyers.

Import in all the cases is bad for the country

Import is not bad in all the cases. This is also a vital part of a country to fulfill domestic needs if the same is not available in the country to maintain the consumption needs. If the Consumption of a particular product running in scarcity in the domestic market is huge and the available supply does not meet the need, then prices suddenly rise and it goes beyond the purchasing power of the common man. In the case, import becomes a necessity to get the foreign products in the country to control the prices and to maintain the balance. For example, the prices of Onions in India few months back was on rise and there was hue and cry all over the country on the prices, Indian government arranged immediate imports to take the prices down.

Trade Balance of India in 2015-2016

Total Exports  : $381006.64 million

Total Import  : $ 262290.11 million

Trade Balance : $118716.53 million

The above numbers shows total export exceed total imports. The trade balance is in positive and it is good sing for Indian Economy. The payment receipt in USD in the form of exports is more than payment made for imports, thus the foreign deposit is still in good position and it will result in strengthening the Indian Rupees.

Process of Import

Anybody interested to import for commercial purpose needs to get IEC Code issued by the Directorate General of Foreign Trade (DGFT) and the imported products shall be in conformity with Section 11 of the Customs Act 1962 ( please visit the link for section 11 for the custom Act :

http://www.cbec.gov.in/htdocs-cbec/customs/cs-act/cs-act-ch4

Bill of Entry

Bill of entry is form of declaration made by the importer about the exact nature of the goods, quantity details and the value of goods. Once the goods is reached at the home country’s port, Bill of entry with details of the products is filled by the importer or by the custom house agent for the clearance of goods to take the same out of the port.

Common Documents need to be presented for the clearance of the imported products

1- Supplier`s invoice
2- Import authorization, if applicable ( A product imported under duty free clause requires Import authorization)
3- Bill of lading – a document issued by the carrier to the exporter and this is binding contract for the acceptance of the goods to transport.
Bill of lading contains name of consignor and consignee, name of the ports departed from and reached to, name of the vessel, dates of departure and arrivals, itemized list of goods, marks and numbers on the packages, eight and volume of the cargo and freight rates.
4- 2 copies Packing list – a document detailing about the contents of the package

What all products can be imported?

All items and goods are not allowed by the government authority to import freely. There is some check and balances on products to be imported. Norms for goods to import is getting changes by the government agencies according to the requirements. An importer needs to keep checking the list of the products.
Few products are in open category and the same can be imported to any amount but few products is kept in quota list. If the quota is full, the import of that product for the year is banned. When you plan to import any product, you need to check if the product is in which list. If it is in the open list, it would good to start importing else rethink and choose another product.

What are stakeholders involved to import any product.

An act of import involves many person or organizations directly or indirectly. The fact that facilitators involved in activities of import process are termed as stake holders playing a key role in the entire process of import.
They are numerated as below;
1- Exporter ( seller of goods)
2- Importer ( buyer of the goods)
3- Intermediary. This can be further elaborated as below;
i- Transport service providers
ii- Freight forwarders
iii- Banks
iv- Insurance providers
v- Custom clearance agents
4- Authority – Custom authority, Environment authority, Standards and Chamber of commerce etc.

Conclusion

An act of import should be purposeful. Being an importer, we need to think about our profitability as well as our participation in the economic growth of the country. Import of goods in scarcity faced by the country will serve both the purpose.

Categories
Export

Your Key To Success: how to export

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.