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Choose the Perfect Product to Export in 6 simple steps

India has been engrossed in Export Import Trade since ancient times. In the year 2019, India exported goods worth $324.25 billion USD, to the world. Such heavy Bilateral trade makes India one of the fastest-growing economies in the world.
Indian businesses have flourished worldwide and Indian businessmen are recognized all around the world. Many goods and services are exported from India for many years.

India exports a gamut of, both, goods and services to the world. The most commonly exported goods are as follows: (The following data is true as of 2019)

  1. Mineral fuels including oil: US$44.1 billion (13.7% of total exports)
  2. Gems, precious metals: $36.7 billion (11.4%)
  3. Machinery including computers: $21.2 billion (6.6%)
  4. Organic chemicals: $18.3 billion (5.7%)
  5. Vehicles: $17.2 billion (5.3%)
  6. Pharmaceuticals: $16.1 billion (5%)
  7. Electrical machinery, equipment: $14.7 billion (4.5%)
  8. Iron, steel: $9.7 billion (3%)
  9. Clothing, accessories (not knit or crochet): $8.6 billion (2.7%)
  10. Knit or crochet clothing, accessories: $7.9 billion (2.5%)
Lets now get straight to the steps you need to follow to find a Perfect Export Product:
  • Find the Right Product:
Finding the right product is really the key to successful export. But selecting the right product is not as simple as it might look. There are many thighs to consider before you go ahead and finalize the product for export.
To select any product for export it is important to verify that the product is available in the local market both easily and abundantly.
The product you choose must be unique in a way that it creates hype in the minds of buyers all around the world. In short, the product must be trendy and fresh in the market not old fashioned or something in which very few people are interested.
Once you find a product that is easily available and trendy in the market, your first step is completed! 
  • Market Selection
Since you have already selected and finalized a product for export. Now it’s time to do some research about all the international markets where you could export your product.
Here it is important that you select a product that is in demand in more than one international market places.
It is also important to know the demand for your product in that market is not temporary. Knowing the political and geographical aspects of the target market also helps better selecting an export product.
  • Adaptability:
A product with huge demand in one market may not be needed at all in another. The reason for it may be anything like, physical condition, functional requirements, culture, tastes, skills and the level of development of that region. 
For a product to be successful in more than one international market places, is that the product must be able to suitably change according to the demand of the market. Such a change in design, colour, packaging etc is called Product Adaptability.
  • Growth Aspects:
Analyse the growth aspects of your business. You may be exporting a product to a particular region and earning a good sum. But exporting the same product to a different, or more receptive market may yield you more returns in the future.
Opposite to this situation may also take place where the importing country might not need the product or they may start producing the product and hence no longer require you to export that product.
Under such circumstances, it becomes important that you understand the requirement of the situation and increase or decrease the flow of your exporting product.
Will your product be able to withstand these changes? Will your product help support your exporting business? 
Answer to such questions becomes necessary when expanding your business to global levels.
  • Product Profitability
As a businessman, the choice of product should be such that its potential must be financially rewarding. Identify the economic source of the product, arrange to stock the same at the lowest price possible and ensure that your target audience is willing to pay the export price.
A good way would be to check the graph of the product in various international market places over a time period. Figure out if it is susceptible to seasons of periodic trends. 
Predict all the expanses related to the product such as cost, logistics, taxes, duties. Also, calculate the profit against the sale price.
  • Trade Regulations:
Every market place is governed by its own unique regulations. It is important to be well aware of the rules and regulations of the country where your export product is going to end up. 
While finding out the target market also try to look for rules your product will fall under. Make sure that your export product is not on the wrong side of the rules of that country. Find out the taxes and the heavy-duty the importing country is going to pay for your export product.
Knowing the target market’s trade relations with India, the exporting country can prove to be helpful.
  • Competition:
It is very difficult to deliver such a product in international market places where the export product faces no competition. Unless your product is unique there is a high chance that your product will face tough competition.
Under such circumstances, the USP of your product must be its quality and durability or must be available at a cheaper price than the competitor, or some combination of the above-mentioned reasons. 
Usually, a proper marketing strategy will take care of the situation but customizing your product is always a beneficial way.
All these factors will help you make a proper decision about the export product you want to select. It is very important that you select a product that will determine your long-lasting stability in international markets.
  • BONUS:
Make sure to promote your product as a unique product, even if the uniqueness is a small part of it.  
Try to choose universal products. Products that are needed all around the world have a better chance at establishing a stable Export Business.
  • Warnings:
Avoid exaggeration about the quality of the product and try to be as honest as possible about the product.
Keep in mind the standard of quality. The standard for quality in exporting country may not be the same in importing country.
This brings us to the end of this conversation. Have you enjoyed reading out Blog? Share your views in the comments.
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Top New Points You Must Be Aware About Export Import Policy In India

Indian Export Import Policy is filled with guidelines & Instructions related to the export import of goods. New Exim Policy covers the year From 2015 To 2020. The Government of India extended the existing Foreign Trade policy Due To the Pandemic. 

Let’s read more about every detail. 

“Some people dream of success, while others get up every morning and make it happen.”

–  Wayne Huizenga

The Government gives an update on exim policy every five years. All the updates & modifications in the existing policy gets implemented from the 1st of April of every respective year. The modifications & changes of exim policy are commonly announced by the union minister of commerce & industry & directorate general of foreign trade.

Objectives of export-import policy in India:

1) To help with the growth of both exports & imports.

2) To give essential intermediates, components, raw materials & capital goods schemes required for production & services. 

3) To advance & encourage the agricultural sector. Also, to generate employment opportunities & improve the quality standard. 

4) To provide clients with a sound quality of goods & services internationally at super competitive rates. 

Salient features of the new Indian export-import policy:

>> The Government of India has identified many new export products through various mediums which include agricultural  to marine products. 

>> Special Economic Zones were being established to encourage exports. One of the major objectives of SEZ is to provide a suitable atmosphere for exports. 

>> No more restrictions! The restrictions have been reduced as compared to the previous exim policies. This gives a boosted encouragement to all the exporters. 

>> Import Licenses process was being removed from major items. 

>> The Rupee was being made partly convertible. Sounds cool!

>> Overall, the new Indian export-import policy has very significant & systematic features on it’s bucket list. 

Importance of New Exim Policy in India

Any Policies made for a better future always sound cool. Here, the new Indian Export Import Policy is something very crucial. See, policies are being made to control & encourage with a particular objective in it. Also coming to India’s new exim Policy, focuses on various objectives. 

>> It boosts ‘Make In India Project.

>> It reduces export obligations for domestic procurement.

>> Forthcoming e-Governance initiatives 

>> Duty exemption

>> Quality Complaints & Trade Disputes 

>> Higher Level of Rewards 

>> New initiatives For EOUs, EHTPs & STPs 

>> Online inter-ministerial consultations 

>> Additional Ports allowed for export import 

Key Advise 

Many opportunities in the export-import business should never be missed as a trader. 

Conclusion:

Export-Import is but a land full of opportunities. There is no stopping once you begin. Also on the other hand frauds too happen. To save them from such scams & to Guide each & every step towards their successful trade, digital exim is always there. The Banner of Digital Exim is Always high in the Export Import Industry no matter how many challenges come, we are never defeated! Call on 9505506333 to join Today! 

Steps to Find a Right Custom House Agent (CHA)

Custom House Agents commonly known as CHAs are responsible for overseeing all business transactions related to imports and exports at the customs office. These agents oversee the preparation for the entry and exit of shipments and maintain itemized, updated records of each transaction. You can learn more about Custom House Agents from the import-export course in Ahmedabad which provides you with brilliant import export services.   CHAs are also the holders of a legal license that must be renewed at a proper time interval. Customs house agents must sign all documents that are filed with them and cannot attempt, in any way, to sway the decisions of the customs officials.  Importers and Exporters appoint the customs house agents for the fast and efficient clearance of their goods. There are certain things you should know about customs house agents before you hire them.   

Role of Custom House Agent- 

  • Custom house agents are like legal advisers or lawyers, they will always help you determine the correct classification of your goods and this helps you to dodge the customs process. 
  • In the process of every import or export, CHA will handle all the formalities and formalities of customs.   
  • The agents will interface with all officials on your behalf to ensure that all formalities are completed smoothly.  
  • As custom house agents, they are legally obligated to perform their duties fairly and efficiently.  
  • CHAs are also responsible for keeping records and keeping accurate records of all the documents they have filed and the procedures they have followed. 

How to find the right Custom House Agent for you- 

CHA plays an important role in your business. So, choosing the right CHA can be tough sometimes. Here are some steps you should consider while selecting the right CHA-  

1 Experience in the field-

See how much he/she is experienced in the field. More the experience more effective the work is. Professionals with experience can provide necessary and specific documents to ease the flow of goods overseas.  

2 Dedication towards work-

To perform any job you need dedication towards your work. The job of a dedicated customs broker is largely about customs compliance and facilitating complex trade. 

3 Positive feedback-

People always appreciate good work. It is easy to trust clearance agents who have positive feedback from previous customers since good work comes with good references.    

4 Validated customs brokers-

Be sure to select CHAs with a legal license for their practice and approval by the administration to avoid fraud. Additionally, they must possess all the necessary technical resources, have a customs permit, and provide all other necessary documentation. 

5 Cost-effective-

A professional should be able to draw an agreement that benefits both parties, especially since you should not face losses under any given circumstance. Furthermore, the contract should include all the information regarding pricing, mode of shipment, schedules, ports, etc. 

6 Knowledge about work-

Having a specialist who knows the specifics of the cargo type as well as being able to manage the volume of the cargo will be very helpful. 

Conclusion-

Ensure that the commissions and fees charged by the agent are by the laws and regulations as described in the law. The agent must ensure that the information provided to the client is accurate and by the regulations and legal provisions. You can learn about the export import business with Digital Exim. International import and export are a wide area and to make it easy for you we have come up with a live free webinar for you all. Join the link given below to attend the webinar.   https://chat.whatsapp.com/Bqz4SWH55nSGtKj3GnJAC8  Do reach out to our website for more info!   

What Is Port Of Discharge And Place Of Delivery 

Terms like these are generally found in sale contracts of exporters and importer, a shipping company that transports cargo, and other related documents. Join import-export consultancy services and learn more about shipping & logistics.  For Example- It is unlikely that your overseas buyer will be able to pick up your shipment at the discharge port. In every country, there are customs-controlled cargo freight stations. Once the cargo arrives at the discharge port, it can be moved to your nearest freight station and you can complete the import customs requirements there. When specifying the delivery place with the supplier, make sure to specify it in the contract.  In other words, the carrier picks up the freight amount and de-stuffs the cargo at the spot of delivery, where the customs department functions. These arrangements are usually made by rail or road movement.  The ‘Port of Discharge’ is the destination port of a vessel or flight for discharging goods.  Importers may complete customs procedures at ports of discharge once the cargo has been unloaded, or they may arrange for the cargo to be transported to the nearest freight station where customs offices are located. Your carrier may arrange to transport your cargo to the location by rail or by road.  Did you like our article? Do share your feedback and experience.   The above information is a part of the Digital Exim Online Training Course.   

For More Knowledge Read Our Article On-

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What is SWOT Analysis and Why it is Important for Business? 

Role of the Indian Embassy in Export Import 

What is a Bill of Exchange? What is a Letter of Credit? 

What is a Bill of Lading? 

What is High Sea Sales?  What Does DGFT Grant to Indian Importers & Exporters? What is Registration Cum Membership Certificate? What is DGFT and Its Role? 

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Importance of WAREHOUSE for International Traders

India is a land surrounded by oceans in the peninsular regions. This makes up a majority of the land’s surface. Export-import trade relies a lot on a continuous flow of the supply chain, which stands true for most businesses. A warehouse is a key factor to keep the supply chain effective!
Let’s first see what is a warehouse. So if we go by the definition, a warehouse is a large building where raw materials or manufactured goods may be stored before their distribution for sale. 
About a decade ago, the term “warehouse” would conjure images of dusty godowns – buildings of an undefined shape located in the outer limits of cities, structures with no more than 4 walls, stacked haphazardly with inventory from floor to ceiling. Fast forward to 2020, and warehousing is not only a highly sought-after sub-set of the commercial real estate asset class but is also a pivotal part of India’s logistics sector.
However, there are still many warehouses that are old and dingy in which goods can neither be stored properly nor be secured adequately. It is estimated that India will draw a whopping $10 billion investment through the warehousing and logistics industry in the coming years, thereby, fostering the demand for smart assets.
With India running towards the development of new technology and efficient management processes, warehouses are not untouched. Companies like Amazon are managing warehouses very effectively and it is a lesson every conventional warehouse owner must learn.
For any supply chain to work properly it becomes inevitable that the warehouses are in good shape and the goods stored there are safe and secured.
Here’s a list of Smart Warehouse features that if implanted properly will exponentially increase the efficiency of the supply chain.
  • Automatic Gate management:
A contactless Gate management system can track not only the vehicles passing to and for but also the visitors and employees through mobility apps. Applications can also be developed that can provide one-stop access and billing requests, electricity and water consumption, among many other features.
  • Introduction of Robotics and Virtual AI Tours:
The introduction of Robotics and automation could prove to be next-generation work for industrial and logistics across India. This will help companies who want to start operations in India to make their business decisions significantly faster and thereby go to market faster.
Automation will help clients reduce their operating costs and optimise their inventory and workforce, thereby gaining a competitive advantage in their industry.
A virtual tour gives a 360-degree view of the park and will provide a real-time experience of the warehouses. In this current situation, this Virtual tour may prove to be beneficial for the safety of the working staff and other visitors.
  • Keeping pandemic guidelines in mind:
The new Warehouse system should provide ready infrastructure to achieve the required operational facilities. From implementing contactless visitor management systems to security cabins equipped with temperature guns for daily screening, and features that ensure elevator buttons are pushed without contact and foot-operated hand-wash set-up. 
It must be assured that both the employees and visitors are safe along with the goods stored there.
To include these smart and futuristic features in the warehouse, an overall warehouse management system must also be formulated.
Given that, we bring to you three exceptional warehousing technologies that are constructively shaping the warehousing sector of India and are sure to beget even more fruitful results shortly. 
  • Warehouse Management System:
A consolidated software that smartly manages every critical process of a warehouse cover to cover, a WMS provides the members of the supply chain with a detailed working view besides prominent real-time data.
 A much-needed contrivance, it perfectly enhances the autonomous processes, delivering advantages like real-time access that improves discernibility, precise demand projecting, competent labour division, simplified internal processes, inventory and pick exactitude, and great supplier and customer associations among many others.
  • Inventory Control System:
From automatically tracking huge shipments to ensuring stringent quality control, an autonomous Inventory Control System is a must-have for the rapidly growing warehousing sector.
 A lot of warehouses still rely on pen and paper to figure out their inventory logging. Not only are these manual processes highly susceptible to errors but also cumbersome. Inventory Control Systems, on the other hand, include software and hardware that automatically manage the process of tracking inventory.
 Based on the advanced wireless barcode technology, these systems function in real time and facilitate tracking of orders and shipments in a warehouse. It also enables systematized order processing and provides the most accurate reports that can be conveniently retrieved anywhere, anytime.
  • IoT Implementation:
The Internet of Things (IoT) is taking the world by storm and rightfully so. To meet the growing requisites, the Indian warehousing sector is gradually shifting to IoT. 
Levelling up inventory management in a warehouse, IoT not only implements drones to foster productivity by reducing risks but also leverages automated guided vehicles that do not require any human interference.
 Moreover, with advanced blockchain technology facilitated by IoT, inventory managers can have the required discernibility and make the most pre-emptive decisions as well as predict demand-based data logs.
Other benefits of IoT-facilitated technologies include accurate measurement of conditions like temperature and moisture (using sensors), enhanced protection and reduction in the events of theft and forgery synchronisation of data for easy accessibility, improved labour planning and many more.
The past decade has witnessed logistics and supply chain management assume the role of a profit driver instead of an ‘overhead cost’. Therefore, many businesses such as e-commerce and manufacturing etc. have started outsourcing a major portion of their operations to warehousing companies. 
This has further increased the demand for a more systematic approach expedited by smart technologies. Cloud-based management services besides mechanised equipment assisted by IoT can no longer be considered discretionary. 
With growing demand, supply chain management transparency has become indispensable and can be achieved by employing automated systems that are flexible and contribute tremendously to the dynamic supply chain, without losing on the client-focused, service approach.
With enhanced exposure in the global market, large-scale domestic and international investments and advanced technological innovation, the future of warehousing and the supply chain are all set to witness the best in emerging technologies.
All this can be done if only the willingness and technology are established and maintained. 

If you wish to read more on Export Import Trade, here’s a link to our BLOG:

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What Does DGFT Grant to Indian Importers & Exporters?

Export and import plays an important role in the growth of any country. India is one of the fastest growing export countries. Merchandise exports from India hit a record high of $35.2 billion in July 2021. India is rich in resources and Indian Exporters are in the export import Trade for a long time to sense the opportunity and dive deep into it! The Indian government gives so many benefits to increase the export of the country. If you still are wondering which product to start with, import export training courses will assist you in International Trade.

What is DGFT?

DGFT stands for Directorate General of Foreign Trade (DGFT), is India’s official administering body for imports and exports. DGFT is responsible for exim guidelines and principles for importers and exporters of the country. DGFT was known as the Chief Controller of Imports & Exports (CCI&E) before 1991. As a government body, DGFT strives to maintain and develop exports and trade relationships with different countries.

Role and Functions of DGFT-

DGFT performs its functions in coordination with the state government and all the other departments of the Ministry of Commerce and Industry, Government of India. Some of the major functions of DGFT are-

  • Licensing of import and export.
  • Formulation and implementation of various trade policies, particularly the Foreign Trade policy.
  • Assisting states to develop their infrastructure for exports.
  • Formulation and implementation of promotional schemes.
  • Establish and control the standard norms for input and output.
  • To allocate the tariff rate quota.
  • To promote trade with neighbouring countries.
  • To make Changes and addition of new codes in ITC- HS Code.
  • Setting standard input- output norms.
  • Funding export promotion councils, industry and trade associations, agencies of state government. On their various endeavors.
  • Platform for using eBRC
  • Inform about goods which cannot be exported freely under Export Policy Schedule 2 .
  • Grant Export Licenses for restricted items.

Importance of DGFT-

  • DGFT helps in improving not only the economic growth but also provides a certain impetus needed in the trade industry.
  • It plays an important role to issue Notifications, Public notices, Circulars, etc.
  • It grants 10 digit IEC, which is the primary requirement of import export.
  • DGFT introduces different schemes from time to time regarding benefits throughout the country. 

How DGFT Regulate Trade from India-

DGFT is responsible for formulating and implementing the Foreign Trade Policy with the main objective of promoting India’s exports. The DGFT also issues scripts/ authorization to exports and monitors their corresponding obligations through a network of 24 regional offices. All regional offices provides facilitation to exporters in regard to development in international trade i.e. WTO agreements to help exporters in their import and export decision in an internationally dynamic environment. Sometimes you may have difficulty in understanding the policies and need an expert to make it clear for you. Digital Exim can help you in all your problems of export import. Digital Exim provides India’s only Integrated Export, Import, Shipping, & Logistics Program. Get your doubts clear from one of the best export import business consultancy in India. We give you training and personal consultancy with our years of experienced trade managers. Attend live classes, interact with them and get your problem solved. Joint with us to know A to Z of International trade. Digital Exim export and import training covers all the aspects of export import with our special guidance. Do give us a visit !

How the Afghanistan Crisis Impacts on Indian Trader

Taliban taking over Afghanistan has impacted many including Indian and Indian traders. Taliban have stopped all trade with India. Indian traders face huge losses within the import-export business. Import-export business courses can assist you in affecting your trade business. Taliban takeover of Afghanistan has impacted the bilateral trade between the two countries. Earlier, in 2019-2020 the bilateral trade reached $1.5 billion and in 2020-2021 the trade reached $1.4 billion. Exports from India were $826 million. Currently, many shipments are stuck and large payments are due which can cause heavy losses to the traders.

The Bilateral Trade

  • India is one of the most important trade partners of Afghanistan. We depend on Afghanistan for dry fruits like walnuts, pistachios, raisins, almonds, figs, pine nuts, dried apricots, and fresh fruits.
  •  India imports around 85% of dry fruits from Afghanistan. 
  • Whereas Afghanistan was importing pepper, tea, coffee, garments, sugar, medical equipment and hardware materials from India.

Goods imported from Afghanistan are now doubled and tripled because of the product shortage and the arrival of the festive season. This has affected the domestic market and hence affected a standard man’s pocket. As we all know, the demand for dry fruits in Indian festivals increases.  India exported 8% of its sugar production to Afghanistan in the previous year. By purchasing 6,24,000 tonnes of sugar Afghanistan became the second-biggest buyer of India. Imagine the loss traders are getting to be facing with this uncertainty, which can take months or years to recover. Even if the trade starts now Indians are going to be still in loss as many of the Afghans have left the country. The demand for the products exported from India will eventually drop.  Talking about the imports, India imports about 60% of Asafoetida from Afghanistan. Not getting the imports affects the domestic traders and domestic trade. As Indian foods are incomplete without spices.   With the halt in trade between the two countries, traders may have to seek out an alternative soon for both the export and import of products. Traders have already faced huge losses in just 1-2 months.  

Factors affecting Indian Traders after the Afghanistan Crisis-

1 The uncertain political scenario- This uncertainty for an extended time is affecting the traders of India. The political scenario of Afghanistan is still known and with that, no one knows the upcoming trade laws of the country. 2 Payment due of exporters- Due to sudden uncertainty many shipments are stuck and large payments are due which can cause heavy losses to the traders. 3 Decreasing economy of the country- Within just one month Afghanistan’s economy has dropped which will become a problem for Indian traders in the future also.   With the bilateral trade shutting down, the Indian government and the Taliban are yet to settle for a trade agreement. India has featured a trade relationship with Afghans for the past 20 years Over the last 5 years, India’s exports have risen by 63%. In this crisis Pakistan has also played its game and denied India trade access with Afghanistan. India export items are shipped from Karachi port and then again loaded within the trucks to deliver to Afghanistan. Now Indian Traders may soon need to find a third country for the trade. Until the Indian government and Afghanistan trade start, traders need to find different countries to export and import the needed products. Hopefully Taliban’s understand the importance of trade and economic development through trade and shortly share an honest trade relationship with India like before.    Want to know more about Export import business, can visit the link below: https://digitalexim.com/blog/ Visit us to know A to Z of the Exim Industry.

Top countries to Export from INDIA

Being in Export Import Trade teaches you a lot many things. You not only learn the trade, obviously, but you also learn the latest trends in the market. 
As a part of the Exim industry, it becomes imperative that you know which products must be exported to which International Target Market.
However, if you are new to the Exim industry you might initially struggle with Product selection and Market selection. Well, there are many Export Import Consultancies out there guiding the selection of products and many Exim-related questions.

Let’s first take a look at the products that are in demand and have been exported from India for a very long time:

  • Precious Stones, Gems, and Jewelry
  • Petroleum products
  • Cereals
  • Pharma products
  • Homeo medicines
All these products are Exported from India to various countries of the world and Indian Exporters earn huge revenue.
Many government policies are supporting the export of such products and Indian Exporters take much advantage of it.

Mentioned below are the top 5 countries where Indian goods are exported in huge quantities:

  • U.S.A – 39 k Cr INR
  • U.A.E – 21 k Cr INR
  • CHINA – 12 k Cr INR
  • SINGAPORE – 7.84 k Cr INR
  • UK – 6.45 k Cr INR
India Exports to a total of 192 countries and Indian Exporters are well established, leading a successful Export business.
You can also export the above-mentioned products from India. Many more goods are in demand around the world and India exports them too.
The Indian government is in Bilateral Trade Relations with all of the above-mentioned countries. As a result, both Importing from these countries and Exporting to these countries becomes easy.
If you feel like this blog has been enlightening and has solved a few of your Exim doubts, then recommend it to your business friends. Let us know in the comments all the things you find good in this blog.
Suggest to us the things you would want us to write about and we will oblige. To read more blogs as such, click on the link below:
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Registration Process of Authorized Dealer Code 

Each port at which your goods are cleared by Customs requires you to obtain an Authorised Dealer Code (AD Code) from your bank. An Authorized Dealer code is 14 digits long and is provided by the bank with which your business has a current account. Import-export business training is the perfect place for you to learn international trade. To know more about AD Code read this export import bog on it.   If you wish to export goods from a port outside your country, you need to register your AD Code with the airport or port from which you intend to ship them. Your Customs House Agent (CHA) will ask for your AD Code when customs clearance occurs. Import-export training in Ahmedabad will give you a better understanding of all the export-import factors.   A company that ships from more than one port, regardless of whether they are located in the same state or different states, must register the AD code for each port. Each AD code will be different in such a scenario. 

Importance of an Authorized Dealer Code-  

  • To generate your shipping bill number, which is needed for customs clearance, you need an AD Code. If you don’t have an AD Code, you cannot generate your shipping bill number.
  • Without a registered AD Code, the IceGate portal’s EDI system will not allow the generation of the shipping bill.  
  • You should register for the AD Code as soon as you obtain your Import Export Code, to receive government benefits directly credited to your current account. If you are eligible for government benefits, an AD Code registration allows you to receive them directly.  

Documents Needed for AD Code Registration at Customs 

Here we have listed some important document you will need while registering Authorized Dealer Code at custom department- 

  • Authorized Dealer Code on bank letterhead 
  • Copy of Import Export Code (IEC) 
  • Copy of PAN
  • Export House Certificate (optional) 

How to Apply for Authorized Dealer Code- 

  • Go to a bank which deals in foreign currencies or is an authorized forex dealer. 
  • Request an AD Code from the bank in the prescribed format.  
  • The bank will further process your request and issue the AD code. 
  • Following this, the exporter must register his AD code with CHA House.  
  • After the registration is processed, all the exporter’s basic information will appear on ICEGATE.   

receive an AD code, you must write a letter to the bank requesting it to issue it against the account of your business. This letter should be addressed to the branch manager in the prescribed format.  A 14-digit AD Code will then be issued by the bank on its letterhead in the format prescribed by the Directorate General of Foreign Trade (DGFT). 

Process of Making Changes in Existing AD Code- 

  • In order to change or cancel an AD Code, you must provide a letter with the reason for the change or cancellation.  
  • You will also need to provide the bank branch’s email address for any further verification.  
  • With these documents, you are required to consult the EDI helpdesk. A new AD Code will then be generated. 

Conclusion-

The AD Code is a necessary document for businesses of all sizes and types. Without the AD Code, you can’t export your goods to another country. Therefore, you need to obtain the AD Code from your bank and register it with the customs department. If you want to know you can join export import training by Digital Exim and get your problem solved.   Or you can join our live webinar and start your business in just 45 days. For more click the link below.   https://chat.whatsapp.com/Bqz4SWH55nSGtKj3GnJAC8 Do visit our website for more Blogs.  

What is Registration Cum Membership Certificate? 

RCMC is an authentication certificates that verify that an exporter is dealing with products registered with the government and that the products are legitimate. These certificates are issued by the organizations that certify exporters and importers. Import-export training in India is the best place to Know about RCMC and its importance. Import-export business classes will guide you to start your business.   It is valid for five years. It is issued by the Export Promotion Council (EPC) and the Community Board of India. Exporters must obtain a Registration Cum Membership Certificate (RCMC) to take advantage of benefits provided by the Foreign Trade Policy. For more information read this export import blog on RCMC.  When applying for an RCMC, an exporter must declare his mainstream business in their application, which will be submitted to the Export Promotion Council/ Commodity Board.   This RCMC will be valid from the first of April of the licensing year when it is issued until the end of the licensing year on 31st March.   RCMC is mandatory for anyone who is importing or exporting restricted items or anyone seeking benefits or concessions under Foreign Trade Policy (FTP) such as duty drawbacks and duty credit schemes.

Need of RCMC?  

  • An RCMC is one of the mandatory documents needed to qualify for export incentives and subsidies under schemes like MEIS, RoSCTL, RoDTEP, SEIS, Advance License, EPCG, and so on. 
  • To obtain a Letter of Undertaking (LUT) under GST for the export of goods without paying duty. 
  • As an alternative to the regular GST on a product, merchant exporters can acquire goods that will be exported for 0.1% GST. 

Application Procedure 

For exporter registration with the applicable EPC, the form ANF 2C must be completed. Exporters can be registered under two categories: one for the manufacturing exporter and another for the merchant exporter. For manufacturing exporter registration, a proof of the same must be submitted. 

Document required-  

  • Copy of the Import Export Code issued by the DGFT with self-attestation. 
  • A self-certified copy of the Permanent Account Number (PAN) issued by the competent authority. 
  • Copies of the Partnership Deeds in the case of a partnership firm. 
  • Copy of the applicant’s manufacturer’s license if he or she is in the manufacturing sector. 
  • Provide the names, residential addresses, contact numbers, and any other relevant information about the Partners/Directors. 
  • A copy of the Memorandum of Association (MOA) and Articles of Association (AOA) (in case of a corporation). 
  • Copy of the self-certified certificate issued by the Registrar of Companies in connection with a company’s change of registered office.
  • Copies of self-certified GST registration certificates. 
  • A self-certified copy of the Trust’s Deed (For trusts, institutions and corporations). 
  • You must pay the membership fee to the ‘Services Export Promotion Council’ either in Demand Draft or by remitting the membership fee by check payable at branches of the ‘Services Export Promotion Council’.  

RCMC holders who have changed ownership, constitution, name or address of their organization must inform the registering authority of the change within one month following the occurrence. The registering authority accepts reasonable reasons for delays. 

List of Export Promotion Council: 

1 Agricultural and Processed Food Products Export Development Authority (APEDA)-  https://apeda.gov.in/apedawebsite/index.html  2 Apparel Export Promotion Council (AEPC)-  https://www.aepcindia.com/node  3 Basic Chemicals, Cosmetics and Dyes Export Promotion Council (Chemexcil)-  https://chemexcil.in/  4 Carpet Export Promotion Council (CEPC)-  http://www.indiancarpets.com/  5 Cashew Export Promotion Council of India (CEPCI)  http://www.cashewindia.org/   6 Chemicals and Allied Products Export Promotion Council (CAPEXIL)  http://capexil.org/  7 Coffee Board  https://www.indiacoffee.org/  8 Coir Board  http://coirboard.gov.in/  9 Council for Leather Exports (CLE)  https://leatherindia.org/   10 Engineering Export Promotion Council (EEPC)  https://www.eepcindia.org/   11 Export Promotion Council for Handicrafts (EPCH)  https://epch.in/   12 Gem and Jewellery Export Promotion Council (GJEPC)  https://gjepc.org/   13 Handloom Export Promotion Council (HEPC)  http://www.hepcindia.com/   14 Indian Oil Seeds and Produce Export Promotion Council (IOPEPC)  http://www.iopepc.org/   15 Indian Silk Export Promotion Council (ISEPC)  https://theindiansilkexportpromotioncouncil.com/  16 Jute Products Development & Export Promotion Council (JPDEPC)  http://www.jpdepc.org/  17 Marine Products Export Development Authority (MPEDA)  https://mpeda.gov.in/  18 Pharmaceutical Export Promotion Council (PHARMEXCIL)  https://pharmexcil.com/  19 Rubber Board  http://rubberboard.org.in/public  20 Power loom Development & Export Promotion council (PDEXCIL)  https://www.pdexcil.org/  21 Project Exports Promotion Council of India (PEPC)  http://www.projectexports.com/   22 Services Export Promotion Council (SEPC)  https://www.servicesepc.org/   23 Shellac and Forest Products Export Promotion Council (SHEFEXIL)  http://www.shellacepc.com/   24 Spices Board  http://www.indianspices.com/  25 Sports Goods Export Promotion Council (SGEPC)  http://www.sportsgoodsindia.org/  26 The Cotton Textiles Export Promotion Council (TEXPROCIL)   https://www.texprocil.org/  27 The Plastics Export Promotion Council (PLEXCONCIL)  https://plexconcil.org/  28 The Synthetic and Rayon Export Promotion Council (SRTEPC)  http://www.srtepc.org/  29 Tea Board  http://www.teaboard.gov.in/   30 Tobacco Board  https://tobaccoboard.com/indexeng.php  31 Wool and Woolens Export Promotion Council (WWEPC)  https://www.wwepcindia.com/  32 Handicrafts Business Promotion (TOOFANI)  https://www.tooofani.com/

Conclusion-  

In India, there are 26 Export Promotion Councils (EPC) and 9 commodities boards. Commodities boards and Export promotion Councils are the ones to issue RCMCs as they are authorized to do so by the Central Government. Import export training course provided by Digital Exim will give you insight into knowledge of international trade.   If you are really interested in learning export import join our live webinar. For more click the link below  https://chat.whatsapp.com/Bqz4SWH55nSGtKj3GnJAC8 Do visit our Website!   

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