FAQ - Export Import Basics

What are the different ways to Export Goods?

There are three primary methods:

By Sea
By Air
By Courier

What is the role of courier/ freight in the export business?

Below are some very important points that play a major role To start the export business.

When a person send samples to any party then he always think of courier. Also small shipments ( 50kg – 100kg) goods export via courier. Do not try to send products via general courier as general courier prices are too high . To understand if you are sending goods via general courier by spending Rs 100 then in special export prices you have to pay only Rs 20 or 30 So you can understand from this that is you rae quoting high courier prices to any party then very less chances of finalizin the deal. So write a special request to big courier companies for special prices, compare them & use best prices. Same is with the freight forwarders. I also have to pass through the same conditions. Due to more courier/ freight prices many deals are cancelled.

The main point there is do not work with every courier company Always use international courier companies such as FEDEX, DHL, UPS etc. & first thing to do is open an a/c with these courier companies , so that you can get special prices that are much cheaper than the general prices. You can not compete in the international market with the general prices. To opening an a/c you need IEC code, AD code, PAN etc.

What payment terms can be used in the export business?

Always work on 100 % advance basis in the begining. To get payment in your bank a/c you need current bank A/c no & Swift ode of the same bank. These two things are necessary for the buyer to transfer payment in you a/c. If the payment is very less then you can use paypal, escrow & other sources.

How the party will give us advance payment in the begining?

To get advance payment from the party very important is you must have complete knowledge of product as well as export, so that when the party ask any question related to the product you export, you can reply it immediately. Also you must have a professional website . You also have to be member of some govt Organizatios such as : PHD , Export promotion Council, etc so that you can give the reference of these to the parties

How we contact courier/ freight forwarder ( sea / air)?

You can contact courier or freight forwarders with the help of Internet. Below are some links & addresses. Note : The freight forwarders always give freight to a new exporter 1 or 2 times & then start avoiding them.

If we work on credit with a company then how we get assured our money?

Never work on credit with a company. I myself never export goods on credit to a company.Regarding this you can contact www.ECGC.in You need to get a cover note from ECGC There is a little fee to be the member of ECGC.The main functions of this organization are : Provides a range of credit risk insurance covers to exporters against loss in export of goods and services Offers guarantees to banks and financial institutions to enable exporters to obtain better facilities from them Provides Overseas Investment Insurance to Indian companies investing in joint ventures abroad in the form of equity or loan There is a little fee to be the member of ECGC.

Is there any subsidy from govt for the export of goods?

There are so many insurance companies in India. Some are national Insurance company, Reliance, Cholamandalam etc. There is a big list of the companies that do the insurance of the products.

What document are required for export the goods, & where they get prepared?

The main document that is required to enter the business of export is IEC Code. You can get information regarding this on www.iec.co.in You can find out the nearest office to you & can contact them. Other documents are those that are required for the export of goods. These are Proforma Invoice, Invoice & packing List. These documents we will provide to our clients. First of all prepare a proforma Invoice ( a rough invoice ) of the products that you want to export against which the party transfer the money in your a/c. When you get the money you need to prepare invoice, packing list. These two documents are main documents in the export line. Give these two documents along with IEC code, AD code to the courier company or freight forwarder

Is there any subsidy from govt for the export of goods?

There are so many products on which India govt. give subsidy. This subsidy is from 1% upto 12%+. You can get detailed information regarding this from your freight forwarders . You can also get information at ?????? But this is not very important information for the beginners.

What goods we have to export in the begining?

If you are new in the export business , start with such products whose price do not fluctuate . such as engineering goods, shoes, pet accessories, handicrafts, etc. The goods whose price fluctuate with the market are honey, food items, medicines etc But remember one thing never work on credit. Remember one thing Nothing is impossible in this world if you have courage and strong desires for your aim. Planning is essential if you want success in your life. There are so many examples in front of you One such example is Dhiru Bhai Ambani. He did not get the training from anyone of being rich. This was his courage & strong desire that today every one in the world knows reliance industries .

How a person can enter the export business without money?

Yes, you can also enter the export business if you have no or less money to invest. Get advance money from the parties . But you must have professional for this. You must know below things Here I can give you my own example. Today I am doing good business without any investment. I always get advance payment from all the parties. But to reach at this position was not so easy. I take Minimum three years to reach there

Why some persons have to face major loss in the export business?

There are many reasons for having loss in business. i) The one major reason is export goods on credit .The companies who have to face loss in the business must worked on credit. ii) Second major reason is fluctuation of prices. When a party gets order the prices of goods will high & the exporter buy at that prices but at time of export the prices go down. Thus the exporter as to face major loss. iii) So I always advise you not to export such goods in the beginning whose prices fluctuate a lot. Major fluctuation can be seen in the prices of food products . iv) Here is an example. In India in year 2003-2004 the mustard honey prices are Rs 92 / kg. So all the exporters get orders & purchase honey according to these prices. But suddenly the prices go down to Rs 18 / kg & almost all the buyers ( foreigners ) cancel the orders. v)Once I also purchased dried morel at Rs 12000 / kg but at the time of export prices remain Rs 7000 / kg. Because the morel was in less quantity only 100 kg, so I only had a loss of Rs 5 Lakh. Note : So I always advise you that in the beginning try to avoid food products or such products whose prices fluctuate a lot.

Is there possibility to visit other countries during export?

Yes, you can also visit abroad . But people who are interested in export business never think of going abroad. They only interested in developing their business . Solowly as the business there are possibilities of going abroad such as to attend exhibitions for related products you export, to meet parties that are importing good from you etc. I also visit many countries for the purpose of increasing my business, but not much work I get visiting abroad. I came in contact with most of the buyers from India with the help of internet . Whatever work or buyers I get from India with the help of internet

Is there possibility to visit other countries during export?

I am in the export business for the last two years , but not able to get any order. Why?

There are so many products whose users. Buyers & suppliers are very less. I myself tried so many products in the past 10 years & was unable to get the orders for some of these products one such product is Celery seeds ( karnoli booti ). Perhaps you have also such a product. I have tried a lot of products for the last 10 years , I get successful in the export of many products. I started working with many branded companies on commission basis such as honey, dried morel etc. These are very risky products, but today I am successfully exporting these products. I have to take minimum 5 years to get all this knowledge & then I was able to contact good companies. These big companies do not allow new persons to enter their factories. It takes some time to learn any new thing. I am giving you all this knowledge via this website, but no one is there to guide me when I entered in the business of export. Also I do not have much knowledge of English. The owner of MCDONALD got successful after a period of eight years. Conclusion of all this is never work on credit basis. Slowly get professional in this business. Once you get professional you start getting orders without any hardwork. I myself get my first order after a period of 2 years.

I donot know english, how i enter the export business?

I myself do not know English, still I am successful in the export business. How? To know please read my history

I knows internet , but not have knowledge of any product. How can I enter the export?

First of all get knowledge of a product that you are interested in. such as belts, wallet, garments etc. Secondly develop a website for your products in which you have to put all the information related to your product. Then try to contact buyers according the information provided in the web. Such way perhaps you do not get orders in the begning but you get knowledge about how to contact buyers, & how to communicate with buyers. This knowledge is very helpful for you after some time when you started working. You can also work with a big export company, but only internet knowledge is not enough to work in a export company. For this you must have experience to communicate with the buyers. So you need a product website & then try to communicate with the buyers. Also you must have knowledge of major export terms. These days the young generation knows computer & you can see them chatting on the internet. But if he says that he knows internet, then do you thing any export company give him a job. So main thing is to change mentality of the young generation .

How we sell products in retail from home?

There are so many sites where you can sell your goods online some of the sites are ebay (www.ebay.in) Amazon (www.amazon.com) and many more . You can trace such sites on google. For this you have to contact these sites.. You also have good internet knowledge to operate these sites. You can also prepare your own site & sell your products.

Why we are selling goods so cheap at ebay & such other retail stores?

We always work on a target, means if we have a target to earn Rs 50 lakh profit in a year then we always follow this target, besides we can get this profit by selling goods worth Rs 10 cr. Or Rs 20 Cr. This is our policy hope you understand why we sell goods cheaper than others. So never try to get more & more profit.

I am a daily worker in Abroad & my family is free not working. How they can do export?

You can also import goods & sell products on ebay & amazon ate sites or can contact any big firm & sell them products in bulk

How NRI’s Can do the business of Export ?

NRI’s who are not residing in India can also enter in the export business with the help of there family members. First of all open the proprietorship firm by the name of any of his family member and secondly prepare required documents with their name in India such as IEC code & others. When these documents get ready then hey can import goods by their own name in the country they residing at present & sell on ebay , Amazon etc. Another option is they can contact any big firm export them directly from India. I am also working like this