Export procedure and export documents, with the organic-produce exporter problem

1. Export procedure: the stages

Stage A: Preliminaries

1. Set up the business as a proprietorship, partnership, LLP or company; open a current account with a bank that is an authorised dealer in foreign exchange.
2. PAN and IEC: apply online to the DGFT for the Importer-Exporter Code (section 7, Foreign Trade (Development and Regulation) Act, 1992).
3. GST registration, and a Letter of Undertaking to export without paying IGST.
4. RCMC from the relevant Export Promotion Council or commodity board (for agricultural produce, APEDA).
5. AD code of the bank registered at the customs port of export.
6. Check the product’s export status in ITC(HS) Schedule 2: free, restricted or prohibited.

Stage B: Getting and confirming the order

7. Market research and selection of target countries (market reports, EPC and Indian mission data, trade fairs under the MAI scheme).
8. Enquiry, quotation and proforma invoice, with the price on an Incoterm (FOB, CIF, etc.) — see the note on trade terms.
9. Confirmed order or contract and agreement on the payment method: advance, letter of credit, documents against payment, documents against acceptance, or open account.
10. Letter of credit (if agreed) opened by the buyer’s bank in the exporter’s favour — see the note on letters of credit.
11. ECGC cover against the buyer’s default and political risk.

Stage C: Producing and preparing the goods

12. Pre-shipment finance (packing credit) from the bank.
13. Production or procurement to the buyer’s specification.
14. Quality inspection by the Export Inspection Agency where the product is notified, or by an agency the buyer names.
15. Packing and marking to the importing country’s rules.

Stage D: Shipment and customs

16. Book cargo space with a shipping line or airline, usually through a freight forwarder or customs broker.
17. Marine or cargo insurance if the contract (CIF, CIP) puts it on the seller.
18. File the shipping bill electronically on ICEGATE; customs examines the goods and grants the Let Export Order.
19. Loading: the shipping line issues a bill of lading (sea) or the airline an air waybill.

Stage E: Post-shipment

20. Send documents through the bank (under the LC or for collection) and give the buyer a shipment advice.
21. Realisation of proceeds through the authorised dealer bank within the period the RBI prescribes under FEMA; the bank issues an electronic Bank Realisation Certificate (e-BRC).
22. Claim benefits: duty drawback and RoDTEP (credited against the shipping bill), IGST or input-tax-credit refund.

2. Export documents

India uses the Aligned Documentation System, under which commercial documents follow a standard layout based on the UN layout key, so that one master document can produce the others.

Documents are often grouped as commercial (invoice, packing list, bill of lading, insurance, certificate of origin, bill of exchange) and regulatory (shipping bill, inspection certificate, phytosanitary certificate, export licence where needed).

3. Worked problem: Mrs. Bindu’s organic produce

Issue. What procedure must an organic farmer follow to export fresh fruits and vegetables?

Advice.

1. Form and registration: she may export as a proprietor or through a company or a farmer producer organisation with neighbouring growers (for volume). Obtain PAN, IEC from the DGFT, GST registration and an AD-code bank account.
2. RCMC from APEDA: fresh fruits and vegetables are scheduled products under the Agricultural and Processed Food Products Export Development Authority Act, 1985, so her registration is with APEDA, which also gives financial help for packhouses, cold chain and market promotion.
3. Organic certification: organic products can be exported as “organic” only if produced, processed and labelled under the National Programme for Organic Production (NPOP), run by the Ministry of Commerce with APEDA as secretariat. Her farm must be certified by an accredited certification body (after the conversion period). NPOP certification is recognised by the EU and Switzerland as equivalent; for the United States she may need certification under the USDA organic rules through an accredited body.
4. Market selection: Gulf countries, Europe and the UK are the main markets for Indian fresh produce; check each country’s pesticide-residue and import rules.
5. Plant health: a phytosanitary certificate from the Plant Quarantine Organisation of India is required for each consignment; some products and markets require registration of farms and packhouses with APEDA traceability systems (such as GrapeNet for grapes to Europe) and treatment (vapour heat or irradiation for mangoes to some markets).
6. Contract and payment: perishable goods should preferably be sold against advance payment or a confirmed letter of credit, with ECGC cover; price on FOB or CIF.
7. Packing and logistics: grading, packing in an APEDA-recognised packhouse, pre-cooling and reefer containers or air freight, with insurance.
8. Customs: shipping bill on ICEGATE, Let Export Order, bill of lading or air waybill.
9. Payment and benefits: realise proceeds through the bank, obtain the e-BRC, claim GST refund and any RoDTEP or APEDA assistance available.

Conclusion. Besides the general steps, Mrs. Bindu must register with APEDA, obtain NPOP organic certification (and the importing country’s equivalent if needed) and a phytosanitary certificate, and arrange cold-chain logistics and secure payment terms.

How this is examined

For the problem, use issue, advice in numbered steps, and conclusion, and keep the product-specific steps visible. For the documents note, the table is enough, with the commercial/regulatory grouping and a line on the Aligned Documentation System.