To start any new rice export business, apart from rice there are certain protocols you need to follow to send your goods overseas. stated below are the main legal steps that are mandatory for any exporting business.
- Company Registration- it is a process including legal documents, which state that you are an authentic business and are working under the government guidelines. Company registration is important for both the government and your potential buyers, as it just signifies the legitimacy of your business.
- IEC Code- IEC is an abbreviation for import and export code, it is a code given to every organization that wants to sell products globally. This code is an identification number allotted to you by the government and every company transactional record for abroad is recorded on this number.
procuring rice is just the basic, international selling is a lot more. The company registration process is the first step before you start exporting, once you submit your documents, you can expect to receive your registration number in about 20 days. After completion of the registration process, the company should have a PAN no. and the duration of getting the PAN no. is almost 40 days.
Getting the IEC Code
One should have IEC (Import Export Code). For the IEC code, the person needs to file in the required paperwork. The procedures can help to get the license which is mandatory for the export-import business in India.IEC is issued by the Director-General of Foreign Trade (DGFT). The IEC code is 10 digit codes that have lifetime validity.
Steps involved in IEC Registration Process
- Prepare an application form in a specified format.
- The documents which are mandatory for the application form are identification proof, address proof, bank details, and certification in respect of ANF2A.
- Once the application form is completed, file the document with DSC (Digital Signature Certificate).
- Finally, a soft copy of the IEC code is provided to the exporter by the Government.
Documents required for IEC Registration
- Company’s PAN card no.
- A Voter ID card or Aadhar card or Passport copy
- Canceled cheque
- Rent Agreement copy or Electricity bill of the premise.
Benefits of IEC Registration Process
The registration process helps to do the benefits for the rice exporters in the market. Some of the benefits are as follows:
- The expansion of the business is possible. The IEC process helps to expand the business with their products to the global market.
- Based on the IEC registration process, the company avails lots of benefits such as import-export permission from DGFT, validation of export promotion council, customs clearance, etc.
- No return filing is required for the IEC registration process. Once allotted, the validity of the document is a lifetime.
- It’s a very easy process to get a valid IEC code.
- IEC code does not require renewal. It could be used by an entity against all import-export transactions.
- Selection of the Target Country
- Once you get the IEC code, select the target countries where you want to export rice from India.
Finding Buyers in the World Market
It is the most important part of the export business that how to find potential buyers in the international market.
Before exporting the rice, one should be aware of the laws and policies of the country to which rice is going to be exported. It has always benefited the exporter to find the target market which is less competitive and is also essential to know the demand of the market.
The best way to find the market strategy for the person who wants to export is that the primary and secondary research analysis of the market, to gather an idea about the market strategy of the particular country to which rice is going to be exported. A proper market analysis can provide better revenue in the future.
Latest News about Export-Import Code by the Indian Government
The latest news about IEC code, which is issued by the Government of India that IEC code, is not mandatory for all the traders who are registered under GST. The PAN no. of the trader is used as a new IEC code for the export-import business. So, there is no requirement for the long IEC registration process.
The government appoints some experts for helping to expand the export-import businesses in the market. One can easily avail the services from experts such as GST, Registration, and business registration, etc.