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How to start an export business

How to start an export business in India

Step-by-step guide to start exporting from India: IEC, AD code, RCMC, GST LUT, buyers, contract and Incoterms, payment terms, packing, shipping bill on ICEGATE, certificate of origin, e-BRC, RoDTEP and duty drawback.

Official sources checked: 2 Oct 2026

Follow these steps in order. Each step names the official page and the fee, and says when a fee is still To confirm. The steps follow DGFT's practical guide to exporting and its customs procedures guide.

Step 1: Pick your product and check its export policy

Find the 8-digit ITC (HS) code for your product. Exports are free unless DGFT's schedule makes the code prohibited, restricted or reserved for a state trading enterprise. Our chapter guide shows the main restricted and prohibited lines for every HS chapter.

Chapter-by-chapter guide DGFT policy search

Fee at this step	Amount
Checking the policy	No feeChecked on official page Source
Export licence application, only for restricted goods	₹1,000Checked on official page Source

Step 2: Set up the business: PAN, bank account and GST

You need a PAN and a current account in the name of the firm. Register for GST, because only a GST-registered person can file a Letter of Undertaking to export without paying IGST. DGFT's practical guide also lists opening a bank account as part of setting up an export business.

GST registration guide GST portal

Fee at this step	Amount
GST registration	No government fee shownTo confirm Source

Step 3: Get your IEC from DGFT

The Importer Exporter Code is a 10-digit code against your PAN with permanent validity. Customs, banks and DGFT ask for it. You need it before you file a shipping bill.

IEC code guide DGFT portal

Fee at this step	Amount
IEC application	₹500Checked on official page Source

Step 4: Register your bank's AD code on ICEGATE

The AD code is the seven-digit code of the bank branch that handles your foreign exchange. Register it with your bank account on ICEGATE for each port you use. You need this for drawback and other refunds.

AD code guide ICEGATE

Fee at this step	Amount
AD code registration	No fee shown in the advisoryTo confirm Source

Step 5: Join the right export promotion council and get the RCMC

The RCMC shows you are a member of the council for your product. You need it to claim benefits under the Foreign Trade Policy. APEDA, MPEDA and the Spices Board look after food and agri products. Other councils cover garments, engineering goods, gems, chemicals and more.

RCMC guide All councils and boards

Fee at this step	Amount
APEDA or MPEDA RCMC	₹5,900Checked on official page Source
Other councils	Set by each councilTo confirm Source

Step 6: File a GST Letter of Undertaking (LUT)

An LUT lets you export without paying IGST. You file Form GST RFD-11 online for each financial year, before you export.

GST LUT guide GST portal

Fee at this step	Amount
LUT filing	No fee shownTo confirm Source

Step 7: Find buyers

Export promotion councils, trade fairs and Indian missions abroad help exporters find buyers. DGFT's practical guide also lists e-commerce and merchant export routes. Start with your product's council and our country pages for the trade agreements that help your buyer.

Country pages Ministry of External Affairs

Fee at this step	Amount
Finding buyers	No government feeChecked on official page Source

Step 8: Agree the contract and the Incoterm

Examine the export order for items, specification, payment conditions, packaging and delivery schedule, then confirm it and sign a contract. The Incoterm in the contract says where the seller's costs and risks end and the buyer's begin.

Incoterms 2020 table

Step 9: Price your goods and choose the payment term

Payment terms with low financial risk, such as full or part advance payment, a letter of credit or documentary collection, are common in exports. If the buyer will not pay in advance or open a letter of credit, DGFT's guide advises getting a credit limit on the buyer from ECGC to protect against non-payment.

DGFT: How to Export

Fee at this step	Amount
ECGC credit limit	Fee set by ECGCTo confirm Source

Step 10: Pack and label for the buyer's market

Pack to the buyer's specification and the transport mode. If you export plants or plant products in wood packaging, the wood must meet ISPM-15. Labels and marks follow the buyer's country rules.

Phytosanitary certificate guide

Step 11: Get product-specific approvals and certificates

Depending on the product you may need a phytosanitary certificate, an animal health certificate, a lab test, a BIS or export inspection certificate, or an MPEDA, Spices Board or APEDA registration. Check the buyer's country rules as well.

Phytosanitary certificate Animal quarantine

Step 12: Choose a freight forwarder and a customs broker (CHA)

A freight forwarder arranges every stage of transport from storing goods before shipment to getting them through customs. Customs House Agents are licensed by the Commissioner of Customs and handle clearance paperwork.

DGFT customs procedures guide

Fee at this step	Amount
Freight and CHA charges	Agreed with the agentTo confirm Source

Step 13: File the shipping bill on ICEGATE

The shipping bill is the customs document you need to clear goods for export. You cannot ship without it. DGFT's guide says you need a PAN-based Business Identification Number (BIN) from Customs and a current account in the designated bank for crediting any drawback amount, registered on the system.

ICEGATE

Fee at this step	Amount
Shipping bill filing	Charges set by Customs and the portTo confirm Source

Step 14: Customs clearance and the bill of lading

Goods are examined as the system directs and a let export order is given. The carrier issues a bill of lading for sea cargo or an airway bill for air cargo. The mandatory export documents are the bill of lading or airway bill, the commercial invoice cum packing list and the shipping bill.

DGFT customs procedures guide

Step 15: Get the certificate of origin if the buyer needs one

Apply on trade.gov.in. A non-preferential certificate proves origin. A preferential certificate helps your buyer claim a duty concession under a trade agreement.

Certificate of origin guide trade.gov.in

Fee at this step	Amount
Non-preferential certificate	₹200Checked on official page Source
Preferential certificate	₹600Checked on official page Source

Step 16: Present documents to your bank and get paid

After shipment, present the documents to your bank for payment. The bank records your export in the Export Data Processing and Monitoring System. When payment comes in, submit your shipping bills to the bank, and the bank issues an e-BRC, the electronic bank realisation certificate.

DGFT: How to Export

Fee at this step	Amount
e-BRC	Bank charges may applyTo confirm Source

Step 17: Claim RoDTEP and duty drawback

RoDTEP refunds hidden central, state and local taxes on exported goods. CBIC runs it end to end on the IT system and no separate application is needed. Duty drawback refunds customs duty paid on inputs, either at All Industry Rates from the schedule or at a Brand Rate on application. You need your e-BRC for most incentives.

DGFT: How to Export CBIC

Fee at this step	Amount
RoDTEP claim	No separate applicationChecked on official page Source
Drawback	Refund of duty, no fee shownTo confirm Source

Fees on this page

Amounts marked To confirm could not be checked on an official page. "Older edition" means the amount comes from an official document that is old or undated. Always confirm the fee on the portal before you pay.

Incoterms 2020 in one table

Incoterms are rules published by the International Chamber of Commerce. DGFT's practical guide lists the 11 terms below.

Term	Name	In plain words
EXW	Ex Works	Seller delivers when the goods are at the buyer's disposal at the seller's premises. The seller does not load or clear the goods for export.
FCA	Free Carrier	Seller delivers the goods to the carrier nominated by the buyer at the seller's premises or another named place.
CPT	Carriage Paid To	Seller delivers to the carrier and pays for carriage to the named destination.
CIP	Carriage and Insurance Paid To	Like CPT, and the seller also buys insurance for the buyer's risk, on minimum cover.
DAP	Delivered At Place	Seller delivers when the goods are ready for unloading on the arriving transport at the named place. The seller bears all risks until then.
DPU	Delivered At Place Unloaded	Seller delivers when the goods are unloaded at the named place of destination.
DDP	Delivered Duty Paid	Seller delivers cleared for import, and pays all duty and carries out all customs formalities for export and import.
FAS	Free Alongside Ship	Sea and inland waterway only. Seller delivers when goods are placed alongside the ship.
FOB	Free On Board	Sea and inland waterway only. Seller delivers when the goods are on board the vessel.
CFR	Cost and Freight	Sea and inland waterway only. Seller pays the cost of carriage to the destination port.
CIF	Cost, Insurance and Freight	Sea and inland waterway only. Like CFR, and the seller also buys insurance.

Source: DGFT: How to Export, a practical guide (Niryat Bandhu, 2023-24).

Common questions

What is the first step to start an export business in India?

Check the policy for your product's 8-digit code, set up the business with a PAN and bank account, and get an IEC from DGFT for ₹500.

How much does it cost to get started?

The IEC costs ₹500. The RCMC costs ₹5,900 from APEDA or MPEDA and varies for other councils. Other steps either have no fee we could confirm or depend on your agent, shipping line and bank.

Do I need a GST LUT to export?

Only if you want to export without paying IGST. Without it you pay IGST and claim a refund.

How do I get paid?

Present documents to your bank, which records the export and later issues the e-BRC when payment arrives.

Can I claim RoDTEP?

RoDTEP is implemented by CBIC end to end on the IT system, and no separate application is needed to claim it, according to DGFT's guide.

Is Govt License a government website?

No. Govt License is an independent guide. We link to the official government portals where you apply and pay. Always confirm the fee on the portal before paying.