Building BusinessServices

Section 14

How to export from India: step by step

Get an IEC and RCMC, check your product's rules, agree an Incoterm and a safe payment term, file a GST LUT, register on ICEGATE, ship with a shipping bill, and bring the money home within 9 months. Small parcels can go by post or courier.

steps
12
documents
11
terms explained
15
  1. 01

    Get your Importer-Exporter Code (IEC)

    IEC is a 10-character code that every exporter needs. It is the same as your business PAN. One PAN gets only one IEC, and it stays valid for life unless cancelled.

    How to do itClose
    1. Apply online on dgft.gov.in in form ANF-2A.
    2. Upload a cancelled cheque with your business name printed on it (or a bank certificate) and address proof.
    3. The IEC is generated automatically and sent by e-mail and SMS; download the e-IEC from your DGFT dashboard.
    4. Update or confirm your IEC details online every year between April and June, even if nothing has changed. Otherwise the IEC is de-activated.
    5. If your address, bank or constitution changes, update the IEC within 30 days.
    Cost
    ₹500 application fee; annual update in April–June is free.
    Time
    Generated online as soon as the application is submitted.
    Sources (3)
    1. Handbook of Procedures 2023, Chapter 2 (version 07/2026), DGFT · 2026
    2. HBP 2023 Appendix 2K: Scale of application fee (DGFT) · 2023
    3. Foreign Trade Policy 2023, Chapter 2 (revised, v1.2.2), DGFT · 2023
  2. 02

    Register with your Export Promotion Council (RCMC)

    RCMC (Registration-cum-Membership Certificate) is membership of the council or board for your main product. It is needed to claim most benefits under the Foreign Trade Policy.

    How to do itClose
    1. Pick the council or board that covers your main line of business (for example APEDA for many farm and processed foods, EEPC for engineering goods).
    2. If no council covers your product, or your main line is not settled yet, take RCMC from FIEO.
    3. Apply in form ANF 2C. A new, not-yet-exporting business can become an associate member.
    4. RCMC is valid for 5 years, from 1 April of the year of issue.
    Cost
    Membership fee differs by council; not verified.
    Sources (2)
    1. Handbook of Procedures 2023, Chapter 2 (version 07/2026), DGFT · 2026
    2. APEDA home page (Register as Exporter (RCMC)) · 2026
  3. 03

    Check the export rules for your product

    Most goods are 'Free' to export. Some are 'Restricted' (need a licence), 'Prohibited', or allowed only through State Trading Enterprises. Food and farm goods may also need a quality or plant-health certificate.

    How to do itClose
    1. Find your 8-digit ITC(HS) code and check Schedule II (export policy) under 'Regulatory Updates' on dgft.gov.in.
    2. Plants and plant products: book inspection and a Phytosanitary Certificate on the PQMS portal; fumigation or other treatment may be needed by the buyer's country.
    3. Fish, dairy, honey, egg products, meat and poultry products need mandatory export certification by the Export Inspection Council (EIC).
    4. APEDA-listed products: register with APEDA (RCMC) before shipping.
    5. Ask your buyer for the import rules of their country (labels, standards, residue limits) before you quote.
    Sources (4)
    1. Foreign Trade Policy 2023, Chapter 2 (revised, v1.2.2), DGFT · 2023
    2. Directorate of Plant Protection, Quarantine & Storage: Import & Export Procedure · 2026
    3. Department of Commerce: Export Inspection Council (mandatory export certification of food items)
    4. APEDA home page (Register as Exporter (RCMC)) · 2026
  4. 04

    Agree the price, Incoterm and payment term with the buyer

    Your quote must say who pays for freight and insurance and where the risk passes (the Incoterm), and how and when you will be paid (the payment term).

    How to do itClose
    1. Choose one of the eleven Incoterms 2020 rules and name the place, for example 'FOB Mundra' or 'CIF Jebel Ali'.
    2. For a first order with a new buyer, ask for advance payment or a Letter of Credit.
    3. Write the price, quantity, quality, packing, delivery date and payment term in a signed contract or proforma invoice.
    4. Payment must come through your bank (the Authorised Dealer) that handles the export.
    Sources (2)
    1. International Chamber of Commerce: Incoterms 2020 · 2020
    2. RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (Notification FEMA 23(R)/2026-RB, 13 Jan 2026, as amended by FEMA 23(R)/(1)/2026-RB, 22 Sep 2026) · 2026
  5. 05

    Protect yourself against non-payment (ECGC cover)

    ECGC insures exporters if a foreign buyer does not pay, or if a war or a ban in the buyer's country stops payment.

    How to do itClose
    1. If your expected export turnover is up to ₹500 lakh a year, take the Small Exporters Policy (SEP): minimum premium ₹5,000.
    2. Above ₹500 lakh, the Shipments Comprehensive Risks Policy (SCR) gives 90% cover, with a minimum premium of ₹10,000.
    3. Declare every shipment and report overdue payments to ECGC on time, or a claim can be refused.
    Cost
    SEP minimum premium ₹5,000; SCR minimum premium ₹10,000.
    Sources (2)
    1. ECGC: Small Exporters Policy (SEP) · 2026
    2. ECGC: Shipments Comprehensive Risks Policy (SCR) · 2026
  6. 06

    File a GST Letter of Undertaking (LUT)

    Exports are 'zero-rated' under GST. With an LUT you can export without paying IGST, and later claim a refund of the GST you paid on inputs. Without an LUT you pay IGST on the export and get it back as a refund.

    How to do itClose
    1. Log in to the GST portal and file form GST RFD-11 before your first export of the financial year.
    2. The LUT is accepted as soon as the acknowledgement with an ARN is generated; no paper needs to go to the tax office.
    3. File a fresh LUT for every financial year.
    4. Goods exported under LUT must leave India within three months of the invoice date (the Commissioner can allow more time); otherwise IGST with interest becomes payable.
    Time
    Accepted on generation of the ARN.
    Sources (3)
    1. CBIC Circular 40/14/2018-GST: Furnishing of Bond/LUT for exports (6 Apr 2018) · 2018
    2. CBIC Circular 37/11/2018-GST: Clarifications on exports related refund issues (15 Mar 2018) · 2018
    3. CHEMEXCIL circular: Renewal of LUT for each financial year (citing CBIC Circular 8/8/2017-GST) · 2018
  7. 07

    Register on ICEGATE and register your bank (AD code) with Customs

    ICEGATE is the Customs online portal. Customs must know the bank account (AD code) where your export money will arrive and the account (IFSC) where IGST refund and drawback will be paid.

    How to do itClose
    1. Register on ICEGATE with your IEC and a digital signature (DSC); match your IEC with your GSTIN.
    2. Ask your bank for an AD code authorisation letter.
    3. Inside your ICEGATE login, request AD code and bank account registration and upload documents on e-Sanchit: bank authorisation letter, IEC, GST certificate, PAN of the business, PAN of the signatory, cancelled cheque.
    4. Most exporters let their customs broker do this at the port of first shipment.
    Sources (2)
    1. ICEGATE (CBIC): Registration services page · 2026
    2. JNCH Nhava Sheva Customs Public Notice 93/2020: AD Code / bank account registration through ICEGATE and e-Sanchit (29 Jul 2020) · 2020
  8. 08

    Get a Certificate of Origin if the buyer needs one

    A Certificate of Origin proves the goods are made in India. A preferential certificate lets your buyer pay lower duty under a trade agreement; a non-preferential one only proves origin.

    How to do itClose
    1. Check whether India has a trade agreement with the buyer's country and whether your product meets its rules of origin.
    2. Apply online on trade.gov.in to an authorised agency; upload the invoice and packing list.
    3. For EU GSP, registered exporters (REX number, free registration) self-certify origin.
    Cost
    ₹600 for a preferential certificate; ₹200 for a non-preferential certificate.
    Time
    Preferential certificate within 24 hours / 1 working day of applying.
    Sources (2)
    1. Handbook of Procedures 2023, Chapter 2 (version 07/2026), DGFT · 2026
    2. HBP 2023 Appendix 2K: Scale of application fee (DGFT) · 2023
  9. 09

    Ship the goods and file the shipping bill

    The shipping bill is your export declaration to Customs. It is filed electronically on ICEGATE, usually by your customs broker. At a port that files electronically it also counts as the RBI export declaration (EDF).

    How to do itClose
    1. Book freight with a freight forwarder or shipping line and hand your customs broker the invoice-cum-packing list and other documents.
    2. Make sure the value in your GST invoice and the shipping bill are the same; if they differ, the lower value is refunded.
    3. Claim RoDTEP (and RoSCTL for apparel and made-ups) in the shipping bill itself.
    4. After Customs gives 'Let Export Order', the goods are loaded and you get the bill of lading or airway bill.
    Sources (4)
    1. RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (Notification FEMA 23(R)/2026-RB, 13 Jan 2026, as amended by FEMA 23(R)/(1)/2026-RB, 22 Sep 2026) · 2026
    2. CBIC Circular 37/11/2018-GST: Clarifications on exports related refund issues (15 Mar 2018) · 2018
    3. Foreign Trade Policy 2023, Chapter 2 (revised, v1.2.2), DGFT · 2023
    4. DGFT presentation: Foreign Trade Policy 2023 (31.03.2023) · 2023
  10. 10

    Small parcels: post (Dak Ghar Niryat Kendra), courier and e-commerce

    Artisans, small makers and online sellers can export small parcels through India Post's Dak Ghar Niryat Kendras or a registered courier, without a container.

    How to do itClose
    1. You still need an IEC for commercial exports.
    2. Register on the DNK portal, file the postal bill of export online and book at the nearest Dak Ghar Niryat Kendra.
    3. FTP Chapter 9 now says there is no value limit per consignment for courier exports; Customs courier rules still apply.
    4. E-commerce exports are paid through international cards or other RBI-allowed electronic channels; goods returned by the buyer can be re-imported under Customs rules.
    Sources (2)
    1. Foreign Trade Policy 2023, Chapter 9: E-commerce exports (DGFT, current version citing Press Note 3 of 2026) · 2026
    2. India Post: Dak Ghar Niryat Kendra portal
  11. 11

    Bring the export money home on time

    Under RBI rules (in force from 1 October 2026) the full export value must be received within 9 months of the shipment date, or 12 months if the export is invoiced or settled in Indian rupees.

    How to do itClose
    1. Submit your export documents to your Authorised Dealer bank and track the shipping bill in the bank's EDPMS.
    2. If the buyer pays less (quality claim, discount), ask your bank to approve the reduction in value.
    3. Advance received for exports must come through the same bank that handles the shipment.
    4. The realisation data (e-BRC / EDPMS) is needed to keep RoDTEP and to close Advance Authorisation or EPCG obligations.
    Time
    9 months from shipment (12 months for rupee exports).
    Sources (2)
    1. RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (Notification FEMA 23(R)/2026-RB, 13 Jan 2026, as amended by FEMA 23(R)/(1)/2026-RB, 22 Sep 2026) · 2026
    2. FTP 2023 Chapter 4: Duty Exemption / Remission Schemes (DGFT) · 2023
  12. 12

    Claim your GST refund and export benefits

    If you paid IGST on the export, the shipping bill itself is treated as the refund claim once the ship or aircraft's export report is filed and your GST returns match. If you exported under LUT, you claim refund of unused input GST on the GST portal.

    How to do itClose
    1. Report each export correctly in your GST returns (GSTR-1 and GSTR-3B); mismatches stop refunds.
    2. Track the IGST refund and RoDTEP e-scrip in your ICEGATE login.
    3. If you import raw materials or machines for exports, look at Advance Authorisation (duty-free inputs) and EPCG (duty-free capital goods) on dgft.gov.in.
    Sources (4)
    1. CBIC Circular 37/11/2018-GST: Clarifications on exports related refund issues (15 Mar 2018) · 2018
    2. ICEGATE (CBIC): Registration services page · 2026
    3. FTP 2023 Chapter 4: Duty Exemption / Remission Schemes (DGFT) · 2023
    4. FTP 2023 Chapter 5: EPCG Scheme (DGFT) · 2023

Documents you will need

Commercial invoice cum packing listMandatory. Shows buyer, goods, HS code, quantity, price, Incoterm and how the goods are packed. A separate invoice and packing list are also accepted.Issued by Exporter
Shipping bill / bill of export / postal bill of exportMandatory. The export declaration filed with Customs on ICEGATE; also used for IGST refund and RoDTEP.Issued by Exporter or customs broker; Customs passes it
Bill of lading / airway bill / lorry or railway receipt / postal receiptMandatory. Proof that the carrier has received the goods; the buyer needs it to take delivery.Issued by Shipping line, airline, carrier or India Post
Certificate of OriginProves Indian origin; the preferential version gives the buyer lower duty under a trade agreement.Issued by Authorised agency, applied for on trade.gov.in
Phytosanitary CertificateFor plants and plant products: shows the goods were inspected and are free of the pests the buyer's country lists.Issued by Directorate of Plant Protection, Quarantine & Storage (through PQMS)
EIC export certificateMandatory for fish, dairy, honey, egg products, meat and poultry products and some other notified food items.Issued by Export Inspection Council / Export Inspection Agencies
Marine insurance certificateNeeded when you sell on CIF or CIP, where the seller must insure the goods in transit.Issued by Insurance company
Letter of Credit and bank documentsWhen paid by LC, the documents you present must match the LC terms exactly, or the bank can refuse payment.Issued by Buyer's bank issues; your bank checks and forwards
ECGC policyInsurance against the buyer not paying.Issued by ECGC Ltd
GST LUT acknowledgement (ARN)Proof that you can export without paying IGST in this financial year.Issued by GST portal
Export realisation record (e-BRC / EDPMS)Shows the export money has arrived; needed for RoDTEP and to close AA/EPCG obligations.Issued by Your Authorised Dealer bank

Terms you will hear

EXW
Ex Works: the buyer collects from your premises and handles export clearance and all transport. Least work for you, but you lose control of the export papers.
FCA
Free Carrier: you clear the goods for export and hand them to the buyer's carrier at a named place. Works for any transport, including containers.
CPT
Carriage Paid To: you pay freight to the named destination, but the risk passes to the buyer when you hand the goods to the first carrier.
CIP
Carriage and Insurance Paid To: like CPT, and you also insure the goods. Incoterms 2020 asks for a higher level of insurance cover under CIP than under CIF.
DAP
Delivered at Place: you deliver to the named place in the buyer's country, ready for unloading. The buyer pays import duty.
DPU
Delivered at Place Unloaded: like DAP, but you also unload the goods at the named place. It replaced the older term DAT.
DDP
Delivered Duty Paid: you deliver and also pay the buyer's import duty and taxes. Most work and risk for you; avoid it unless you know the buyer's customs rules.
FAS
Free Alongside Ship (sea only): you place the goods next to the ship at the named port, cleared for export.
FOB
Free On Board (sea only): you clear the goods for export and load them on the buyer's ship at the named Indian port; the buyer pays sea freight and insurance.
CFR
Cost and Freight (sea only): you pay sea freight to the named destination port, but the risk passes to the buyer once goods are on board in India.
CIF
Cost, Insurance and Freight (sea only): like CFR, and you also buy minimum insurance for the buyer.
Advance payment
The buyer pays before shipment. Safest for you; common for first orders and small buyers. Advance must come through your Authorised Dealer bank.
Letter of Credit (LC)
The buyer's bank promises to pay when you present documents that exactly match the LC. Safe if the documents are perfect and the issuing bank is sound.
Documents against Payment (D/P)
Your bank sends the shipping documents to the buyer's bank, which releases them only when the buyer pays. If the buyer refuses, your goods are stuck abroad.
Documents against Acceptance (D/A)
The buyer gets the documents by signing a promise to pay on a future date. Riskiest bank route; take ECGC cover.

Mistakes to avoid

  • Not updating the IEC between April and June every year: the IEC is de-activated and Customs will hold your shipment.
  • Exporting without a valid LUT for the current financial year, or forgetting to renew it on 1 April.
  • Different values in the GST invoice and the shipping bill: only the lower value is refunded.
  • Shipping on D/A or open account to a new buyer without ECGC cover or an LC.
  • Missing the realisation deadline: from 1 October 2026 it is 9 months (12 months for rupee exports), down from 15 months earlier.
  • Quoting a price without naming the Incoterm and place; disputes start over who pays freight and who bears damage.
  • LC documents with small spelling or date mismatches: the bank can refuse to pay.
  • Sending food or farm goods without checking the buyer country's residue limits, labels and plant-health rules; the cargo can be rejected at their port.
  • Treating Foreign Trade Policy benefits as fixed: DGFT changes them often by notification, so check before pricing.
Sources (20)
  1. Handbook of Procedures 2023, Chapter 2 (version 07/2026), DGFT · 2026
  2. HBP 2023 Appendix 2K: Scale of application fee (DGFT) · 2023
  3. Foreign Trade Policy 2023, Chapter 2 (revised, v1.2.2), DGFT · 2023
  4. APEDA home page (Register as Exporter (RCMC)) · 2026
  5. Directorate of Plant Protection, Quarantine & Storage: Import & Export Procedure · 2026
  6. Department of Commerce: Export Inspection Council (mandatory export certification of food items)
  7. International Chamber of Commerce: Incoterms 2020 · 2020
  8. RBI: Foreign Exchange Management (Export and Import of Goods and Services) Regulations, 2026 (Notification FEMA 23(R)/2026-RB, 13 Jan 2026, as amended by FEMA 23(R)/(1)/2026-RB, 22 Sep 2026) · 2026
  9. ECGC: Small Exporters Policy (SEP) · 2026
  10. ECGC: Shipments Comprehensive Risks Policy (SCR) · 2026
  11. CBIC Circular 40/14/2018-GST: Furnishing of Bond/LUT for exports (6 Apr 2018) · 2018
  12. CBIC Circular 37/11/2018-GST: Clarifications on exports related refund issues (15 Mar 2018) · 2018
  13. CHEMEXCIL circular: Renewal of LUT for each financial year (citing CBIC Circular 8/8/2017-GST) · 2018
  14. ICEGATE (CBIC): Registration services page · 2026
  15. JNCH Nhava Sheva Customs Public Notice 93/2020: AD Code / bank account registration through ICEGATE and e-Sanchit (29 Jul 2020) · 2020
  16. DGFT presentation: Foreign Trade Policy 2023 (31.03.2023) · 2023
  17. Foreign Trade Policy 2023, Chapter 9: E-commerce exports (DGFT, current version citing Press Note 3 of 2026) · 2026
  18. India Post: Dak Ghar Niryat Kendra portal
  19. FTP 2023 Chapter 4: Duty Exemption / Remission Schemes (DGFT) · 2023
  20. FTP 2023 Chapter 5: EPCG Scheme (DGFT) · 2023

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