Asked by
Muthu
in
Entrepreneurship
at
9:11 PM on July 20, 2008
's Answer
Well Mr.Muthu
The following are the guidelines you can follow to start an export-import business.
1. First of all you need a firm/company and then apply for the IEC (Import Export Code) from DGFT (Director General of Foriegn Trade). Website: http://dgftcom.nic.in.
2. Next decide what you want to import or export. Make sure those products are not in restricted items category. And also check out the customs tariff for those products. Website: http://www.cbec.gov.in.
3. If your main object of the business is to export the finished goods, then apply for the incentives that are available for export oriented companies. The incentives and schemes details are available in the above mentioned customs website.
4. After completing these basic formalities, tie-up with suppliers and buyers and negotiate the terms and also payment conditions. It is best to follow good payment practices like mostly use L/C (Letter of Credit) to buy and sell the products in international market to avoid business losses and frauds.
5. Now enter into a contract with a forwarding company which handles the shipping and customs clearance formalities. It is best to take shipping insurance policies from a general insurance company to avoid unforeseen losses.
6. Next are normal business procedures like importing required products, producing finished goods, marketing the products etc.
Hope these points can guide you to start your business.
Answered at
6:14 PM on July 26, 2008
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