“Export” here conveys the meaning of transporting or carrying away the goods from one place to another or may be one country to another.
Export trade starts from the receipt of an export order. In this, there is an agreement between the importer and the exporter agreeing to the terms and conditions or the licenses as per mentioned in the document. After the documentation work is done, exporter starts producing or procuring goods for shipment.
Well, processing an export order involves various steps which will be described later to you. Before going further, we should have a brief idea of IEC that what does IEC mean? Why is it required? And much more questions relating to it:-
Basically, IEC stands for Importer Exporter Code. This is a code required or important for those who are either exporting or importing any item, good, or service from country to country.
This IE code is issued by Directorate General of Foreign Trade (DGFT) that comes under the Ministry of Communication and Industries enacted by Govt. Of India. IEC code is a basic requirement for the one who is either importing in India or exporting outside India. To get this IE code, a copy of PAN card, proof of address of business, the constitution of the business and a letter for the banker are required.
IEC, when issued, can be issued by entity throughout its existence and does not require any renewal or filing, therefore, it is recommended for most of the organizations or firms to obtain IE code at their earliest. Once the app. is submitted, DFGT dept. will issue the IE code for the entity in 3 to 7 working days or less.
Steps that are enacted when an Export Order is processed:-
Export Procedure can be divided into following stages:-
Stage 1:- Registration Procedure.
Stage2:- Pre-Shipment Procedure.
Stage3:- Shipment Procedure.
Stage4:- Realizing Export Incentives.
Stage5:- Post-Shipment Procedure.
1st stage here involves the process of receiving or receipt of agreement between exporter and importer as:-
1) Simply as stated above, before producing and procuring goods, for shipment agreement in the form of the document is mandatory.
2) In this step, there would be overall checking or examining of the goods and services to be exported may contain the items like Product description, terms of payment, terms of shipment, inspection and insurance requirement, last date of return and other terms and conditions.
Hereby, 2nd stage arrives that is of Pre- shipment procedure:-
3) It follows some crucial steps including Inquiry and Offer, Foreign Buyers, Opening of the letter of credit and last but not the least is the arrangement of Pre- Shipment Finance.
4) Then comes the pre-shipment inspection whereby inspection certificate is issued in triplicate.
Original Copy is sent for the custom verification. The second copy is sent to the Importer and third copy is kept with the exporter himself for his reference purpose.
Stage 3 includes Shipment Procedure:-
5) The exporter has to contact the shipping company well in advance for booking the required space in the vessel for shipment.
6) Arranging Internal Transport from factory/warehouse to the port of shipment.
7) Preparation and processing of shipping documents such as shipping bill, commercial invoice, letter of credit together with the export contract, the centre of origin, GR form, AREI form, packing list or packing note and last one are Excise Invoice.
8) The incentive is a kind of appraisal for encouraging people to behave in a certain way. The govt. of India has formed several schemes to promote exports and to obtain foreign exchange.
9) Here, submission of documents by the agents to the exporter is done.
10) Tasks like dispatching of documents and exchanging of documentary bills take place.
11) At last, GR form is processed.
Well in any state of India, IEC code could be taken easily. Either Bangalore or Delhi, you must be prepared with your all documents that are necessary for IEC code registration. Generally, it takes 3-7 days to get the IEC code after the submission of all required documents.
Now, as we are residing in a techno advanced society so, it is even easier to get your own IEC code by taking the help of online mode. There are numerous sites available that provide IEC code and promises to get issued within 3-7 working days or even less. The only need is to send the scanned copy of your documents to them and then you are just one step away to get it!!