#Export trade meaning license#

Then the formalities are to be performed by the agent which includes obtaining a permit from the customs department, preparing the shipping bill, paying the dues after disclosing the required details of the product being exported. Step 7: Formalities by a Forwarding Agent The exporter should make the required arrangements to execute the order: Step 6: Preparation for Executing the Order The foreign exchange rate fluctuates from time to time so they need to fix the rate of exchange.Īs per the Foreign Exchange Regulation Act of India (FERA), every exporter of the goods is required to furnish a declaration in the form prescribed in a manner in the Act.

The rate at which the home currency can be exchanged with the foreign currency is then fixed. The exporter then asks the importer for the letter of credit, if the importer does not send the letter of credit along with the order.

#Export trade meaning license#

The Indian exporter will receive the order either directly from the importer or through the indent houses.Īfter receiving the order from the importer, the Indian exporter is required to obtain an export license from the Government of India, for this the exporter needs to apply to the Export Trade Control Authority and get a valid license for this. In general, an export procedure initiates with the willingness to send the goods and services to other foreign nations at some price, these procedures of export are stated below: The business exports its goods and services to other nations by adhering to basic principles and law and thus this is very important in the study of export and import fields. In this section, we will know about these formalities that stimulate domestic economic activity.

Exporting done by the country is bound to many formalities both legal and compulsory made by the exported nation. Moreover, after the LPG initiative, exporting and importing have heightened its pace of development. Exports, like the import system, are held to be one of the major components of international trade.