Q.Describe the procedure followed by an exporter in executing an export order.

Executing an export order runs through registration, pre-shipment preparation, shipment and post-shipment stages before the exporter is finally paid.

An exporter's work, from receiving an enquiry to being paid, moves through four broad stages:

1. Registration stage — Before the first shipment, the firm obtains an Importer-Exporter Code (IEC) from the DGFT, registers with the relevant Export Promotion Council for a Registration-cum-Membership Certificate (RCMC), and completes GST registration.

2. Pre-shipment stage — On receiving and confirming an export order, often backed by a Letter of Credit opened by the importer's bank, the exporter manufactures or procures the goods, arranges pre-shipment quality inspection where required, completes GST-related formalities, and packs and marks the consignment. A Clearing and Forwarding (C&F) agent is appointed to handle port formalities and book shipping space, and the Shipping Bill is prepared for customs.

3. Shipment stage — The goods move to the port or airport; customs clearance is completed; cargo insurance is arranged; the goods are loaded on board, and the C&F agent obtains a Mate's Receipt, which is exchanged with the shipping company for the Bill of Lading (sea) or Airway Bill (air). …

Students often jump straight to 'shipping the goods' and skip the registration stage (IEC/RCMC) entirely, or forget that the exporter's own bank is the channel through which document …