Export is the process to sell the goods and services to other nations while import is to buy them from other nations to yours. It is one of the oldest businesses in the world. Export and Import occurs on the law of Comparative advantage. When India has a higher comparative advantage of producing metal wall art than America, then America will import Metal Wall art from India, and vice versa.
Benefits of Exports:
- Export is a high ticket business. If the importer likes the products then he’ll buy from this exporter frequently.
- Exports help the nation as well. The nation will receive foreign currency as till 2023 most of the nations will transact in free floating currencies like Dollar or pounds.
- The relations between both the nations will grow stronger.
- Customers in both nations will enjoy the best quality products that are specialties of these countries, all at the best prices. Increase in competition will help the customer receive the best goods at better prices.
- The technology will diffuse at a higher rate in both the nations from each other.
- The reliance of each other will make the country stand for each other during war or any threat.
- Mass manufacturing will begin as the market for the businesses in both the nations will increase. This will bring more jobs and more money in the society.
- The nation can become more diverse as it won’t be anymore reliant on one industry or one market. This will reduce the harm through shocks from financial fluctuations.
- Foreign direct investment will increase due to this relation.
Documents required for exports:
In India following Documents will be required for exporting goods:
- Proforma Invoices and Commercial Invoices: These two documents hold the information of both the exporter and importer, price of the products along the terms and conditions of payment both parties have agreed upon. In international business, when both importer and exporter signs these documents then they are agreeing to carry out business with each other. Both of these documents are created by the exporter.
- Packing List: This document is also made by the exporter and it contains the list of the goods which are being exported along with their weights and the exact box number in which they are being packed. The custom officer will basically check the cargo using this document.
- Bill of Lading (BL): This document can be imagined as the key with the exporter with which he is securing his trade. The importer cannot take the cargo from the dockyard till he has the original BL. Thus when the importer gives money to the exporter, then the exporter will send the BL to the importer with which he can release the goods.
- IEC or Export and Import licence which the Government will provide this exporter.
- Certificate of Origin with which the importer will receive a discount on the import duty. This is in the case where the two nations have a Free Trade Agreement.
- Insurance Certificate depending on the INCOTerm agreed by both the parties.
- Fumigation Certificate when wooden items or even planks are involved. For example, home decor exporters in India needs Fumigation Certificate as wooden pallets are used for stuffing the cargo most of the times.
- Third party quality inspection certificate when third party inspection is carried out.
- Phyto-sanitary certificates for fruits and Vegetables.
The exporter will only make Proforma Invoices, Commercial Invoices and Packing List. Rest all the documents will be made by the Freight Forwarder.
Export Marketing Methods we are trying:
For instant results:
- Daily Outreach: Daily outreach or cold messaging to the clients. This client data can be collected from B2B businesses like India Mart, Alibaba; Embassy, Paid Port data, Linkedin, Chamber of commerce, Export promotion council, etc. Outreaching them on Linkedin can give instant results.
- Paids Google and Linkedin Ads.
Methods take medium time:
- Engaging in Groups on Quora, Reddit, Linkedin, etc. on export questions.
Methods for Long Term Funnel Building:
- SEO: Bringing the website on the top when an importer searches for exporters in India can bring a huge amount of leads. This is a slow process but is a strong funnel. This includes strengthening your website by On page SEO, and building backlinks (for which I’m writing this article)
- Building an Email List: Get the mails from your website, Paid Ads, Linkedin, Lead magnets, etc.
- Build Strong Lead Magnets like online tools.
With this when the importer comes on your website, you should communicate quickly and have all the documents. Keep your website and social media engaging.
Government aids in exports:
Government helps a lot in this as well.
- Duty Drawbacks are given by the Government. These are like cashback or a certain percentage of the price of the container sent.
- Tax Benefits: The tax money is given back to the exporters.
- Remission of Duties and Taxes on Exported Products (RODTEP): which is also a sort of cash back but in the form of scripts.
- Export promotion council which is created by nations to help their exporters in providing knowledge or other ways.
- Insurance schemes against credits. Like ECGC in India given to the Indian exporter.
Export is a Good business but it takes time to start as it is a high ticket business. But the aim should be to provide high quality products, Build a Brand and Trust and finally build a marketing funnel.