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Q.If you have to export goods from India to U.S.A., what is the procedure you have to adopt ?
Jammu Kashmir JkboseJKBOSE Class 11 (Commerce) 2024Subjective· 4mImportance★★★★★est
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** Exporting goods from India (to the U.S.A. or any country) follows a standard legal and commercial procedure, from receiving the export order to finally realising payment.
Export procedure, step by step:
- Receipt of enquiry and sending quotation: A foreign buyer (U.S. importer) sends a trade enquiry; the Indian exporter responds with a proforma invoice/quotation giving price, quality, delivery terms.
- Receipt of export order: The buyer places a confirmed order (indent) on the exporter.
- Assessing the importer's credit-worthiness and securing payment guarantee: The exporter checks the buyer's reputation and, for safety, insists on an appropriate payment mode — commonly a Letter of Credit (L/C) opened by the importer's bank in the exporter's favour.
- Obtaining necessary export licence/registration: The exporter must have an Import Export Code (IEC) from the DGFT, be registered with the concerned Export Promotion Council and obtain a Registration-cum-Membership Certificate (RCMC); licences are also needed for any restricted/canalised goods.
- Production or procurement of goods: The exporter manufactures or procures the goods as per the order specifications.
- Pre-shipment inspection and quality control: Many goods require inspection by an authorised agency to certify quality before shipment.
- Excise/GST clearance: Necessary tax clearances/exemptions applicable to export goods are obtained.
- Appointing a Clearing and Forwarding (C&F) agent: The C&F agent handles customs formalities, booking of shipping/cargo space, and other port-related work on the exporter's behalf.
- Reservation of shipping space: The C&F agent books space with a shipping company (or airline) for the cargo.
- Packing and marking: Goods are packed suitably for international transit and marked/labelled as per the buyer's and destination country's requirements.
- Marine (transit) insurance: The goods are insured against loss or damage in transit.
- Customs clearance: A shipping bill is filed and customs examines and clears the goods for export. …
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