What are the procedure adopted in exporting goods from India?

The procedure adopted in exporting goods from India.

The Import and export (control) Act, 1947 regulates the export and import of goods. All the countries impose restrictions on export of certain specified goods which are in short supply. The central government declares rules, policies and procedure of export of goods from time to time. The procedure of export must be guided with those rules and polices so framed by the central government.

Export Import Documentation Tickets & Schedule, 21 August 2014 at ...

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The following procedures are adopted while exporting goods:


Receipt of Enquiry and Sending Quotations: The prospective buyers of a commodity sends an enquiry to the exporter requesting the exporter to send information regarding price, quality and terms and conditions of supply of goods. The enquiries are sent directly or through an indent firms. The replies to the enquiry are made in the form of a quotation or Performa invoice. There are different types of quotations like Loco Price, Free on Rail (FOR), Free on Board (FOB), free along side ship (FAS) and Franco or Rendu. Both the reply to enquiry and quotation must specify the various conditions like mode of delivery, mode of packing and terms of payment.

Receipt of Indent: When the prospective buyer is satisfied with the terms and conditions of trade, he gives an order for the goods to be dispatched. The indent or order may be received by the exporter directly from the importer or through indent houses. An indent contains description of goods ordered, the price, the nature of invoicing and specific instruction of goods ordered, the price, the nature of invoicing and specific instruction on packing and forwarding of goods. There are two types of indent called open indent and close indent. In the former case, all necessary facts are not given by the importer and the order will take a final shape after negotiation between the exporter and importer. In the later case, full particulars of goods to be delivered are clearly stated.

Enquiry about Creditworthiness: After receipt of indent, the exporter makes necessary enquiry about the creditworthiness of the buyer. Before sending the goods the exporter will ensure that there is no risk of non-payment. For this purpose, the exporter demands a letter of credit (L/C). It is a guarantee by the bank to the foreign dealer that their bills will be honored upto a specified amount.

Obtaining Export License: Export of goods in India are subject to the control of the Import and Export (Control) Act, 1947. Certain commodities cannot be exported without obtaining an export license. The export license, free license and Limited free license. No export license is required for exporting the following goods:

  • The goods exported by the central government.
  • Personal luggage of a person going outside India.
  • Permitted goods exported by Post.
  • The goods included in the purview of OGL.


Depositing foreign Exchange: The foreign exchange regulation Act, 1947 necessitates that every exporter must deposit foreign exchange earned with the Government or Reserve Bank of India within a specified time. For this purpose, the exporter will give on undertaking by filling GR forms which contains value of goods exported, mode of receiving payment and the name of the foreign exchange.

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