How to Export Goods from India: Complete Step-by-Step Process

Thinking about exporting goods from India but not sure where to start?

The export process can look complicated when you first see terms like IEC, GST, HSN code, Shipping Bill, customs clearance, AD code, LUT, Airway Bill, Bill of Lading, and eSANCHIT.

But once you break the process down, it becomes much easier to understand.

In simple terms, exporting means much more than packing your products and sending them to an international customer. You need to check whether your product can be exported, identify the applicable regulations, prepare the right documents, arrange transportation, complete customs formalities, and make sure you receive payment correctly.

The exact requirements can change depending on what you are exporting, where you are exporting it, how you are shipping it, and whether the product falls under any special regulatory requirements.

For example, exporting garments to the USA is not the same as exporting chemicals to Europe. The basic export process remains similar, but the compliance, certifications, packaging, labeling, and destination requirements can be very different.

So, if you are asking: "How can I export goods from India?" Here is the process in a practical, step-by-step format.

Step 1: Decide What You Want to Export

Before you start dealing with customs or freight forwarders, first decide exactly what product you want to export. This sounds obvious, but it is an important starting point.

You should understand:

• What exactly is the product?
• Who will buy it?
• Which countries have demand for it?
• What is the product's HSN classification?
• Is the product freely exportable?
• Does it require any special permission or certification?
• What are the destination country's import requirements?
• What will be your approximate export price?

Do not start by choosing a shipping company. Start with the product and market.

For example, if you manufacture food products, you may need to check requirements related to food safety, labeling, shelf life, and destination-country regulations. If you export chemicals, you may have additional classification, safety, packaging, and documentation requirements.

Step 2: Find Your Target International Market

Once you know what you want to export, decide where you want to sell it. You can start by researching countries where your product already has demand.

Look at:

• Import demand & existing competitors
• Selling prices, duties, and taxes
• Shipping costs & trade agreements
• Product regulations & local certifications
• Customer preferences & delivery timelines

Do not assume that a country with high demand is automatically the best market. Before approaching buyers, calculate the approximate landed cost.

Step 3: Obtain an Import Export Code (IEC)

If you are planning commercial imports or exports from India, the Import Export Code (IEC) is a key requirement. The IEC is issued by the Directorate General of Foreign Trade (DGFT).

The IEC is associated with your PAN, and it is used to identify the importer/exporter in India's trade ecosystem. If you are starting an export business, getting your IEC is one of the first formal steps to take.

However, do not assume that having an IEC alone makes every product ready for export. Your product may still be subject to additional restrictions, permissions, licenses, or regulatory requirements.

Step 4: Register for GST if Applicable

Depending on your business and the nature of your supplies, GST registration and compliance can become an important part of the export process. Exports are generally treated as zero-rated supplies under India's GST framework.

For registered exporters, there are generally two broad ways to handle GST on exports:

• Export with payment of IGST: The exporter pays the applicable IGST and can claim a refund subject to the applicable rules.
• Export under LUT without payment of IGST: Eligible registered exporters can export without payment of IGST by furnishing a Letter of Undertaking (LUT).

The GST invoice for exports also needs the appropriate export endorsement depending on the scheme chosen.

Step 5: Identify the Correct HSN Code

Your product needs to be classified correctly under the applicable HSN/HS code. This classification affects:

• Customs requirements & export policy
• Duties & product restrictions
• Documentation & statistical reporting
• Destination-country import requirements

Do not select an HSN code simply because it looks similar to your product. An incorrect classification can create problems during customs clearance.

Step 6: Check Export Policy (Free, Restricted, or Prohibited)

Not every product follows the same export rules. Broadly, goods may fall into categories such as:

• Freely exportable
• Restricted (requires special permissions/licenses)
• Prohibited
• Subject to specific conditions

Always verify the current export policy before accepting an international order.

Step 7: Check Import Requirements of Destination Country

You may complete all Indian export requirements correctly and still face a problem when the goods arrive at the destination. Depending on the product, your buyer may need:

• Import permits & product certifications
• Country-of-origin information & special labeling
• Health, Phytosanitary, or safety certificates
• Testing certificates & packaging compliance

Confirm with your buyer or the relevant destination-country authority that the goods can be imported without issues.

Step 8: Find and Verify an International Buyer

You can find buyers through B2B marketplaces, trade exhibitions, export promotion councils, distributor networks, or direct outreach. However, finding a buyer is only half the job.

Before accepting a large international order, verify:

• Company identity & business registration
• Website & business presence
• Payment terms & import capability

Step 9: Finalize Commercial Terms (Incoterms)

Agree on commercial terms before production or shipment begins. This should cover product specs, quantity, price, currency, packaging, delivery timeline, payment terms, and Incoterms (e.g., FOB, CIF, EXW, FCA).

Incoterms define clear responsibilities for transportation, export clearance, import clearance, insurance, and risk transfer.

Step 10: Decide How You Will Receive Payment

Common international payment arrangements include:

• Advance payment
• Letter of Credit (LC)
• Documentary collection
• Open account

For a new buyer, preference should be given to stronger payment protection options.

Step 11: Prepare the Commercial Invoice

The commercial invoice provides details about the transaction and the goods being exported. It generally includes exporter/buyer details, invoice number/date, product description, HSN code, unit price, total value, currency, delivery terms, and country of origin.

Accuracy matters—ensure all values match across your export documents.

Step 12: Prepare the Packing List

The packing list tells the logistics and customs teams what is physically inside the shipment. A basic structure includes:

Step 13: Arrange Appropriate Export Documentation

India's Foreign Trade Policy identifies core mandatory export documents:

• Bill of Lading / Airway Bill / Lorry Receipt
• Commercial Invoice cum Packing List
• Shipping Bill / Bill of Export

Additional items such as Certificates of Origin, Inspection Certificates, or Phytosanitary Certificates may be needed depending on the product and destination.

Step 14: Decide Between Air Freight and Sea Freight

Choose Air Freight when: Shipment is urgent, cargo is relatively small/lightweight, high-value goods, or time-sensitive inventory.
Choose Sea Freight when: Shipment is large, bulky, heavy, delivery is non-urgent, or cost-efficiency per unit is paramount.

Step 15: Select a Freight Forwarder or Logistics Partner

Working with an experienced freight forwarder simplifies pickup, freight booking, cargo handling, customs clearance, and shipment tracking. Compare full door-to-door breakdowns rather than freight rates alone.

Step 16: Prepare the Shipment

Complete manufacturing, quality inspection, packaging, labeling, and physical measurement. Verify that physical units match documents exactly (Product + Quantity + Weight + Dimensions = Invoice & Packing List).

Step 17: File the Shipping Bill

Under Section 50 of the Customs Act, the exporter enters goods for export by presenting the Shipping Bill electronically on the customs automated system. The exporter holds responsibility for declared accuracy and compliance.

Step 18: Submit Supporting Documents Electronically

Documents are uploaded electronically through eSANCHIT. This includes the Commercial Invoice, Packing List, Certificate of Origin, and any required product licenses.

Step 19: Complete Customs Clearance

Customs assesses the shipment through document review, queries, or physical examination. Prompt responses to any query prevent flight or vessel schedule delays.

Step 20: Obtain the Let Export Order (LEO)

After customs formalities are complete, the shipment receives the Let Export Order (LEO). Cargo can only be loaded for export once LEO is granted.

Step 21 & 22: Move Cargo & Receive Transport Document

The cargo is dispatched to the port/airport cargo terminal for loading. Once accepted for transport, the carrier issues the transport document: an Airway Bill (AWB) for air freight or a Bill of Lading (B/L) for sea freight.

Step 23: Track the Shipment

Once the shipment has departed, track it until it reaches the destination. Depending on the carrier, you may track using:

• Airway Bill number
• Bill of Lading number
• Container number
• Carrier or freight forwarder tracking systems

Do not stop monitoring the shipment once it leaves India. Keep the buyer updated on estimated arrival, transshipment, customs clearance, and final delivery.

Step 24: Buyer Completes Import Clearance

Your responsibility does not necessarily end when the shipment leaves India. The buyer or their appointed customs broker normally handles import formalities in the destination country, including:

• Import customs declaration
• Duties and taxes
• Product-specific requirements & import permits
• Customs inspection & destination handling

Understand the Incoterm agreed with the buyer so both sides know who is responsible for each stage.

Step 25: Complete Payment and Banking Formalities

After shipment, complete the agreed payment process and submit necessary documents to your bank. These may include:

• Commercial invoice & packing list
• Airway Bill or Bill of Lading
• Certificate of Origin & Bill of Exchange
• Letter of Credit documents (where applicable)

Maintain consistent records between export documentation and bank records.

Step 26: Complete GST and Export Reporting

Export invoice details form part of GST reporting (such as GSTR-1). If exporting with payment of IGST, CBIC's Rule 96 provides for the Shipping Bill to serve as an application for refund of IGST paid on exported goods.

Ensure Shipping Bill information and GST return data align perfectly to prevent processing delays or mismatched records.

Step 27: Keep Your Export Records

Maintain organized historical records of invoices, packing lists, Shipping Bills, transport documents, certificates, customs filings, payment confirmations, and freight bills. Previous export documents serve as valuable benchmarks for future shipments.

Complete Export Process From India at a Glance

1. Select product → 2. Research target market → 3. Obtain IEC → 4. Complete GST compliance → 5. Identify HSN code → 6. Check export policy → 7. Check destination import rules → 8. Find & verify buyer → 9. Finalize terms & Incoterms → 10. Prepare invoice & packing list → 11. Choose Air or Sea freight → 12. Book forwarder → 13. Pack cargo → 14. File Shipping Bill → 15. Submit eSANCHIT docs → 16. Pass customs clearance → 17. Obtain LEO → 18. Deliver cargo to terminal → 19. Receive AWB/BL → 20. Departure from India → 21. Buyer import clearance → 22. Receive payment & complete GST/banking → 23. Retain records.

Common Mistakes New Indian Exporters Make

• Choosing the wrong HSN code: Confirm classification before starting regular shipments.
• Ignoring destination regulations: Indian export clearance does not guarantee import eligibility.
• Last-minute documentation: Missing certificates cause unexpected delays.
• Unverified buyers: A confirmed order is not the same as a credit-verified buyer.
• Evaluating only base freight rates: Always compare complete door-to-door costs.
• Ignoring carton dimensions: Dimensional/volumetric weight can drastically raise air freight costs.
• Misusing Incoterms: Understand clear boundary lines for cost and risk transfer.
• Failing to retain records: Past documentation simplifies scaling future export orders.

How Much Does It Cost to Export Goods From India?

There is no single fixed cost for exporting. The total landed/export transaction cost formula is:

Product Cost + Export Handling + Freight + Insurance + Applicable Destination Charges = Total Export Cost

Factors like cargo volume, destination, transport mode, Incoterm, and specific product compliance shape the overall expense.

Air Freight or Sea Freight for Indian Exporters?

Air Freight is ideal for: Urgent deadlines, smaller sample shipments, high-value goods, or rapid stock replenishment.

Sea Freight is ideal for: High-volume, heavy, or bulky shipments where transportation cost control takes priority over speed.

Final Thoughts

Exporting goods from India becomes manageable once broken down into structured phases: commercial planning, regulatory compliance, documentation, logistics execution, and post-shipment financial settlement.

Getting these foundational steps right ensures a smooth, repeatable, and profitable international export business.