EXPORT PROCEDURE OF

AGRICULTURAL PRODUCTS
A successful exporter should thoroughly research the markets. The
fewer intermediaries a person has the better as every intermediary
needs a percentage for his share in his business. This leads to fewer
profits.

1) REGISTRATION AS A BUSINESS ENTITY:-

The first thing you need to do is set up a business organization
depending on your export needs. If you decide to incorporate a
private limited company, then you have to register the same with
the Registrar of Companies. There are two types of exporters -
merchant exporters who buy goods from the market or from
manufacturers and sell them to foreign buyers and a manufacturer
exporter who manufactures the goods his exports. Then they have
to get themselves registered with the RCMC. RCMC means the
certificate of registration and membership granted by an Export
Promotion Council/ Commodity Board/ Development Authority or
other competent authority as prescribed by Foreign Trade Policy to
an exporting unit. Any person, applying for a license/
authorization/certificate/permission to import/ export or any other
benefit or concession under Foreign Trade Policy is required to
furnish (RCMC). It is also required for executing a bond before
Central Excise authorities, which exempts exporters to furnish
bank guarantees.

2) BANKING PROCESS AND SAMPLE SELECTION:-

The second thing you need to do is to open a current account in the
name of the organization in whose name you intend to export, at a
bank that is authorized to deal in foreign exchange. Carefully
select the products you wish to export and study current export
trends. Also, find out about the import regulations of the
commodity in the importing countries. Send export letters to
targeted companies with information about your company,
product, pricing and other services offered. Negotiate with buyers
for a good deal.

3) AMENDMENT TO DOCUMENTS –
Once an export order is received it must be processed and a
contract that lists item specifications, payment conditions,
marketing requirements, arbitration, shipping and insurance must
be drawn out.
Exporter or 'Person In charge' have to submit various documents to
customs authorities like Bill of Entry, Import. Export Manifest etc.
Some times, it may become necessary to amend the document due
to various reasons like change in classification, clerical mistake in
document, change in unloading / loading plan of vessel etc. In such
case, permission to amend these documents have to be obtained
from customs authorities. Such permission can be given if there are
no fraudulent intentions.

In case of bill of entry, shipping bill or bill of export, it can be

amended after clearance only on the basis of documentary
evidence which was in existence at the time the goods were
cleared, warehoused or exported, and not on basis of any
subsequent document.

4) IEC NUMBER
Exporters face risks such as credit risk, currency risk, carriage risk
and country risk. These can be countered through steps like
insisting upon an irrevocable letter of credit from the overseas
buyer and taking out a marine insurance policy. All exporters have
to register with a regional licensing authority that provides them
with an Import Export Code (IEC) number.
5)REGISTRATION WITH SALES TAX OFFICE:-
Agricultural goods Exported from India are exempt from central &
state sales tax. However, for getting exemption of such taxes or
claming their refund, wherever permissible under Foreign Trade
Policy, the exporting unit should be registered with sales tax
authorities.

To get benefits and concessions under the export-import policy,

exporters should register with an appropriate export promotion
agency (RCMC) by obtaining a registration-cum-membership
certificate. The agricultural Goods that are exported are eligible for
exemption from both Sales Tax and Central Sales Tax. For this
purpose, you should get yourself registered with the Sales Tax
Authority of your State.

5) REGISTRATION WITH EXCISE DEPT.:-

Since agricultural sector is an exporting unit engaged in
manufacturing of its products, it needs registration with excise
department & formalities remain the same as for any domestic
unit. This registration is required for claiming refund of excise
duties under various schemes of the government.

6)PRE-SHIPMENT QUALITY CHECKS:-

Agricultural products have to go through quality control and pre-
shipment inspections before export. Under the Export (Quality
Control and Inspection) Act, 1963(External website that opens in a
new window), about 1,000 commodities under the major groups of
food and agriculture, fishery, minerals, organic and inorganic
chemicals, rubber products, jute products and coir are subject to
compulsory pre-shipment inspection. However, products that have
an ISI Certification Mark or Agmark do not need to be inspected
by any agency. All goods should be labeled, packaged, packed and
marked before export.
EXPORT PROCEDURE FLOWCHART