Export

Chapter 1: About Me

Hello! I am Vikram Neware (NGPINEX), an Export Business Expert. I have helped many Indian exporters succeed in the global trade market. This book will guide you step-by-step on how to start an export business, secure payments, and avoid scams.

Why This Book is Valuable for You?

Simple language and practical guidance for beginners

Real-life experiences and strategies

Actionable steps that you can apply immediately

Chapter 2: Why Choose the Export Business?

Export business in India is a rapidly growing industry, supported by government initiatives like “Make in India” and “Atmanirbhar Bharat”.

1. Benefits of Export Business:

✅ Global Market Access: You can sell worldwide.
✅ Higher Profit Margins: Better returns compared to the local market.
✅ Government Support: Subsidies, tax benefits, and incentives.
✅ Payments in Foreign Currencies (USD, EUR, GBP, etc.)
✅ Job Creation and Business Expansion

2. Are You Ready for Export?

✔ You must have an IEC (Import Export Code).
✔ GST and DGFT Registration are mandatory.
✔ You must comply with RBI, Customs, and Banking regulations.
✔ Market research and product selection are crucial.

Chapter 3: Responsible Export – Helping India Grow

A successful exporter not only earns profits but also contributes to the nation’s growth:
✅ Strengthens India’s Economy
✅ Promotes Indian Products in Global Markets
✅ Creates New Employment Opportunities
✅ Brings Foreign Exchange (Forex) into India
The government also provides special benefits for MSME exporters, helping small businesses enter the global market.

Chapter 4: Types of Incoterms

Incoterms (International Commercial Terms) define the responsibilities of buyers and sellers in international trade. There are 11 types of Incoterms, divided into 4 categories:

1. E Group (Departure) – 1 Term

EXW (Ex Works): The seller makes the goods available at their warehouse; the buyer is responsible for all transport costs and risks.

2. F Group (Main Carriage Unpaid) – 3 Terms

FCA (Free Carrier): The seller delivers the goods to a specified location.

FAS (Free Alongside Ship): Goods are delivered alongside the ship; the buyer takes responsibility afterward.

FOB (Free On Board): The seller is responsible until the goods are loaded onto the ship.

3. C Group (Main Carriage Paid) – 4 Terms

CFR (Cost and Freight): The seller pays freight charges, but not insurance.

CIF (Cost, Insurance, and Freight): The seller pays both freight and insurance.

CPT (Carriage Paid To): The seller pays for delivery to a specific location.

CIP (Carriage and Insurance Paid To): The seller covers both transport and insurance.

4. D Group (Arrival) – 3 Terms

DPU (Delivered at Place Unloaded): The seller delivers the goods and unloads them at the buyer’s location.

DAP (Delivered at Place): The seller delivers the goods, but the buyer is responsible for import duties.

DDP (Delivered Duty Paid): The seller pays all duties and taxes.

Chapter 5: How to Safely Receive Payments?

1. Letter of Credit (LC)
   ✅ A bank-guaranteed payment method.
   ✅ Protects against fraud.
2. Advance Payment
   ✅ Zero risk.
   ✅ Best for small orders.
3. Documentary Collection (DA/DP)
   ✅ Transactions secured through banks.
   ✅ DA (Documents Against Acceptance): Buyer pays within a specific period after receiving documents.
   ✅ DP (Documents Against Payment): Buyer must pay before receiving documents.
4. Online Payment Gateways
   ✅ Secure transactions via PayPal, Wise, SWIFT, and other banking channels.

Chapter 6: Follow RBI, Customs, and Banking Guidelines

✔ IEC (Import Export Code) is mandatory.
✔ Register for GST and DGFT (Director General of Foreign Trade).
✔ Follow FEMA (Foreign Exchange Management Act) regulations.
✔ Take advantage of SEZ (Special Economic Zone) benefits.

Chapter 7: How to Find Buyers?

B2B Platforms: Alibaba, IndiaMART, GlobalSources, TradeIndia.

Embassies & Trade Missions: Contact Indian embassies in foreign countries.

Digital Marketing: Promote through LinkedIn, Facebook, Google Ads.

International Trade Fairs & Exhibitions: Participate in global trade expos.

Chapter 8: How to Avoid Scammers?

❌ Never deal with unknown companies without verification.
✅ Ask for LOI (Letter of Intent) from buyers.
✅ Use bank guarantees or LC for transactions.
✅ Conduct online research and background checks on buyers.
✅ Beware of fake websites and fraudulent emails.

Chapter 9: Types of Invoices in Export Business

Proforma Invoice – Sent before shipment to confirm details.

Commercial Invoice – Issued for final payment.

Customs Invoice – Required for customs clearance.

Tax Invoice – Includes GST/VAT when applicable.

Shipping Invoice – For freight and transportation costs.

Consular Invoice – Certified by the consulate of the importing country.

LC Invoice – Used when transactions are backed by a Letter of Credit.

Debit/Credit Note – Issued for additional charges or refunds.

Chapter 10: Types of Bills in Export

Bill of Lading (BOL) – Proof of shipment.

Airway Bill (AWB) – For air cargo transportation.

Shipping Bill – Required for customs clearance.

Bill of Entry – Required for importing goods.

Packing List – Details of the shipment contents.

Chapter 11: Types of Insurance in Export Business

Cargo Insurance – Protects goods from loss or damage.

Credit Insurance – Safeguards against payment defaults.

Marine Insurance – Covers risks during sea transport.

Political Risk Insurance – Protection against instability in foreign countries.

Conclusion

The export business is a great opportunity for Indian entrepreneurs, but knowledge and precaution are essential. By following these steps, you can become a successful exporter and contribute to India’s global trade growth.
Thank You!