Export business frequently asked questions

I. Starting Your Export Business in India

Q1: What are the fundamental legal requirements to start an export business?

• A: To legally start exporting from India, you must establish a business entity (Sole Proprietorship, Partnership, Company, etc.) and obtain a few mandatory registrations:

  • Permanent Account Number (PAN): Essential for all financial transactions.

  • Importer-Exporter Code (IEC): A 10-digit number mandatory for exports/imports, issued by the Directorate General of Foreign Trade (DGFT).

  • Bank Account: A current account with a bank authorized to deal in foreign exchange.

  • Registration-cum-Membership Certificate (RCMC): Obtained from the relevant Export Promotion Council (EPC) or Commodity Board to avail of certain benefits and concessions under the Foreign Trade Policy.

Q2: How do I select the right product and market for export?

• A: Selection is key. Globax Solutions helps you with in-depth Market Research and Product Feasibility Analysis.

  • Product: Focus on products with high demand, unique selling propositions, and a comparative advantage from your region (e.g., specific textiles, spices, or engineering goods).

  • Market: Research global markets based on factors like demand, competition, quality standards, and existing trade agreements. We assist in identifying high-potential markets where your product is likely to thrive.

Q3: Is a high initial investment necessary to start exporting?

• A: The required investment varies widely based on the product, scale, and chosen marketing strategy. A small-scale export operation can begin with a moderate investment covering initial inventory, sampling, compliance fees (like IEC), and basic marketing. Our programs focus on cost-effective strategies and efficient capital allocation to help minimize upfront costs.

II. Essential Export Documentation & Logistics

Q4: What are the most common documents required for an export shipment?

• A: While specific requirements vary by country and product, the key documents include:

  • Commercial Invoice: A bill for the goods from the seller to the buyer, used by customs to determine duties.

  • Packing List: Details the contents, weight, and dimensions of each package.

  • Bill of Lading (B/L) / Airway Bill (AWB): A contract between the shipper and the carrier, acting as a receipt of goods.

  • Shipping Bill (or Bill of Export): Filed with Indian Customs for clearance.

  • Certificate of Origin (COO): Certifies the country where the goods were manufactured or processed.

  • Insurance Certificate: Proof of marine or cargo insurance coverage.

Q5: What are Incoterms and why are they important?

• A: Incoterms (International Commercial Terms) are a set of 11 rules published by the International Chamber of Commerce (ICC). They define the responsibilities, costs, and risks associated with the delivery of goods between the seller and the buyer. They are crucial because they clarify exactly:

  • Who is responsible for paying shipping costs, insurance, and duties.

  • Where the risk of loss or damage transfers from the seller to the buyer. (Common examples: FOB, CIF, DDP, EXW)

Q6: How does Globax Solutions help with the complexity of documentation and compliance?

• A: Our Documentation Services simplify your entire export journey. We provide:

  • Preparation and Verification: We ensure all your commercial, shipping, and customs documents are complete, accurate, and compliant with both Indian and destination-country regulations.

  • Compliance Guidance: We help you navigate product-specific requirements, certifications (like FSSAI, CDSCO, etc.), and foreign trade policies to avoid costly delays and penalties.

III. Working with Globax Solutions

Q7: What services does Globax Solutions offer to help me grow my export business?

• A: We offer a complete suite of solutions for end-to-end global trade success:

  • Export-Import Training: Practical, in-depth training on procedures, documentation, and market strategy.

  • Export Marketing Solutions: Professional website development, international SEO, paid ad campaigns, and social media marketing to generate quality international leads.

  • Documentation & Compliance Services: Complete support for all your paperwork and regulatory adherence.

  • Lead Generation: Strategies and tools to help you find and secure genuine international buyers.

Q8: How can Globax Solutions help me find reliable international buyers?

• A: Finding verified buyers is a core focus of our service. We utilize a multi-pronged approach:

  • Digital Marketing: Building a strong global digital presence to attract high-quality inbound inquiries.

  • Market Penetration Strategies: Guidance on attending relevant trade fairs, utilizing B2B portals, and leveraging professional networks.

  • Buyer Vetting: Training and support on screening potential buyers and countries to minimize business and payment risks.

Q9: How can I ensure secure payment in international trade?

• A: Payment security is paramount. We guide you on various payment methods and risk mitigation tools:

  • Secure Methods: Utilizing options like Letter of Credit (LC) for higher security, Documentary Collections, or working with reputable third-party Escrow services.

  • Risk Mitigation: Advising on obtaining insurance through the Export Credit Guarantee Corporation (ECGC) to cover commercial and political risks of non-payment.