How to export: a do-it-yourself guide

Set up the business and bank account

You can export as a proprietor, partnership, LLP or company. You need a PAN for the business and a current account with a bank that is an authorised dealer (AD) in foreign exchange. Most large banks are. Export money comes into this account.

Register for GST

GST registration lets you export under LUT without paying IGST and claim back the GST on your purchases. Without it, you lose that refund. Apply on gst.gov.in; see the GST checklist.

Get your IEC from DGFT

The Importer-Exporter Code is a 10-digit code linked to your PAN. Apply on dgft.gov.in with the ₹500 fee; it is usually issued online the same day.

Tip: Update the IEC online every year between April and June, even if nothing changed. Otherwise it is deactivated.

Get RCMC from an Export Promotion Council

A Registration-cum-Membership Certificate is needed to claim most Foreign Trade Policy benefits. Join the council for your product, for example SRTEPC for synthetic and rayon textiles, TEXPROCIL for cotton, EEPC for engineering goods, APEDA for agri and processed food, or FIEO if no product council fits. Councils also share buyer enquiries and trade fair stalls.

Register on ICEGATE and at the port

Register on icegate.gov.in. Then register your bank's AD code and your bank account at each port you will ship from. Customs uses this account to credit your IGST refund and drawback. Your customs broker can do the port registration for you.

Pick the product and find its HS code

Find the 8-digit ITC-HS code for your product. It decides export policy, duty drawback and RoDTEP rates, and the import duty in the buyer's country.

• Check the export policy in DGFT's ITC-HS Schedule 2: most goods are Free, but some are Restricted (need a licence) or Prohibited.
• Check the destination country's rules: import licences, standards, labelling and product certificates.
• Check if India has a trade agreement with that country. Your buyer may pay lower duty with a certificate of origin.

Find buyers and check them

Good sources: your Export Promotion Council, trade fairs, the government's Trade Connect portal (trade.gov.in), Indian embassies' trade wings, and B2B portals.

Before you ship, check the buyer: company registration in their country, a website and address that match, and trade references. ECGC can check a buyer's creditworthiness and insure you against non-payment.

Tip: Be careful with buyers who push for large orders on open credit from the first deal, or who change bank details by email. Confirm bank details by phone.

Work out your export price

Build a costing sheet from your cost upward:

• Product cost, export packing and labelling
• Transport to port or ICD, customs broker fees, port and terminal charges
• Freight and insurance, if your Incoterm includes them
• Bank charges, ECGC premium, interest on working capital
• Your margin

Then subtract the export incentives you expect (drawback and RoDTEP) to see your real break-even price.

Send a quotation and proforma invoice

Quote in the buyer's currency (usually US dollars) with a clear Incoterm and named place, for example "FOB Mundra". State validity, payment terms, delivery time, packing and minimum quantity. Once the buyer agrees, send a proforma invoice. Buyers often need it to arrange payment or an import licence.

Agree the contract and payment terms

Get a signed purchase order or sales contract that covers product specifications, quantity, price, Incoterm, delivery date, payment terms, inspection, and how disputes will be settled.

For a new buyer, ask for advance payment or an irrevocable LC. See LC and TT for the trade-offs.

Tip: If paid by LC, read every term the day you receive it. Get anything you can't meet amended before production, not after shipment.

Arrange finance and insurance, if needed

Banks give packing credit (pre-shipment loan against a confirmed order or LC) in rupees or foreign currency, and post-shipment finance against export bills. ECGC policies protect you if the buyer or their country fails to pay.

Produce, pack and mark the goods

Pack to survive a sea voyage: strong cartons, moisture protection, and shipping marks (buyer, destination port, carton numbers) as agreed. Wooden pallets and crates must be ISPM-15 treated and stamped. Arrange any inspection the buyer or country needs before dispatch.

File LUT and make the export invoice

File a Letter of Undertaking (RFD-11) on the GST portal before your first export of the financial year. You then export without paying IGST. The export invoice should show:

• Your IEC and GSTIN, and the buyer's full details
• HS code, description, quantity and value in foreign currency
• Incoterm, port of loading and final destination
• The line "Supply meant for export under LUT without payment of IGST" and your LUT reference

Also prepare a packing list with net and gross weights and carton-wise contents.

Book freight

If you are paying freight (CFR, CIF, CPT, CIP and D-terms), book through a freight forwarder or directly with a shipping line or airline. For small shipments by sea, LCL (shared container) is cheaper than a full container (FCL). Get the booking confirmation and cut-off dates for cargo and documents.

Customs clearance and shipping bill

Appoint a licensed customs broker. Give them the invoice, packing list, LUT, IEC and any certificates. They file the shipping bill on ICEGATE, where you also claim drawback and RoDTEP. Move the goods to the port or ICD with an e-way bill. Customs may examine the cargo, then issues the Let Export Order (LEO), and the goods are loaded.

Tip: Check the draft shipping bill before filing: HS code, value, incentive claims and bank account. Mistakes here are slow and painful to fix later.

Collect transport and origin documents

• Bill of lading (sea) or airway bill (air) from the carrier: the key document for ownership of the goods
• Certificate of origin: preferential (for FTA duty benefit) through DGFT's online CoO platform, or non-preferential from your council or a chamber of commerce
• Insurance certificate, if your Incoterm requires you to insure

Send documents to the buyer or bank

How depends on payment terms. For advance payment, email copies and courier or telex-release the bill of lading. For LC, present the documents to your bank within the LC deadline. For documentary collection (D/P or D/A), send them through your bank, which releases them to the buyer only against payment or acceptance.

Receive payment and close the export

The buyer pays into your AD bank account by SWIFT. Give your bank the purpose code and link the payment to the shipping bill, so the export is closed in EDPMS, RBI's export tracking system. An e-BRC is then generated on the DGFT portal.

Export proceeds must be realised within the time limit under FEMA, currently 15 months from the date of export; confirm the rule for your shipment date with your bank.

Claim your refunds and incentives

• GST refund: under LUT, claim refund of unused input tax credit on the GST portal (RFD-01). If you paid IGST, the refund comes automatically once your returns match the shipping bill.
• Duty drawback: at All Industry Rates, credited to your registered bank account after the ship sails and the carrier files its manifest.
• RoDTEP (or RoSCTL for apparel and made-ups): claimed in the shipping bill and issued as e-scrips on ICEGATE, which you can use to pay import duty or sell. RoDTEP was notified until 30 September 2026 and a longer extension has been proposed; check the current DGFT notification.

Keep records and stay compliant

Keep a file per shipment: order, LC, invoice, packing list, shipping bill, bill of lading, bank advice, e-BRC and refund proofs. GST law requires records for at least 72 months after the annual return due date. Every year: update your IEC, renew RCMC when due, file LUT again, and reconcile exports in your GST annual return.