How to start exporting from India: IEC, AD code, RCMC, GST LUT and your first shipment

Many Indian manufacturers and traders sell excellent products at home but have never shipped abroad, often because exporting looks like a maze of registrations and paperwork. In practice, the core steps are well defined and mostly online. This guide walks through them in order, from setting up your business for export to getting your first shipment out of the port.

Rules and procedures change from time to time, so confirm current requirements with DGFT, your bank and your customs broker as you go.

Step 1: have your business basics in place

Before export-specific registrations, you need:

• a registered business entity (proprietorship, partnership, LLP or company)
• a PAN for the business
• GST registration
• a current account with a bank that handles foreign exchange (an authorised dealer bank)

Step 2: get your Importer Exporter Code (IEC)

The IEC is a ten-character code issued by the Directorate General of Foreign Trade (DGFT). It is required for any export or import of goods (with limited exceptions).

• Apply online on the DGFT website using your PAN, business details and bank details.
• The government fee is nominal and the IEC is issued electronically.
• The IEC must be updated online every year (DGFT sets an annual window); an IEC that is not updated can be deactivated.

Step 3: register your AD code with customs

Your bank issues an Authorised Dealer (AD) code. You register this code with customs at each port from which you will export, through the ICEGATE portal. Export proceeds and incentives are linked to this code. Your customs broker (CHA) can help with the process.

Step 4: get an RCMC from an export promotion council

A Registration-cum-Membership Certificate (RCMC) is issued by the export promotion council (EPC) for your product line, or by FIEO for multi-product exporters. You need an RCMC to claim many benefits under the Foreign Trade Policy. EPCs also run trade fairs, buyer-seller meets and market information services that are useful when you're starting out.

Some products need registration with a specific body, for example:

• APEDA for many agricultural and processed food products
• Spices Board for spices (see our spice export guide)
• MPEDA for marine products
• other boards and councils for tea, coffee, rubber, textiles and more

Step 5: set up GST for exports

Exports are treated as zero-rated supplies under GST. You have two options:

1. Export under a Letter of Undertaking (LUT) without paying IGST. You file the LUT online on the GST portal (Form GST RFD-11), usually once per financial year. You can then claim a refund of input tax credit on your purchases.
2. Pay IGST on the export and claim a refund of the IGST paid.

Most regular exporters use the LUT route because it avoids blocking working capital in tax.

Step 6: understand export incentives

Indian exporters may be eligible for:

• Duty drawback: a refund of customs duties on imported inputs used in export products.
• RoDTEP (Remission of Duties and Taxes on Exported Products): a rebate of certain embedded taxes and duties not otherwise refunded.
• Advance Authorisation and EPCG: schemes to import inputs or capital goods duty-free against export obligations.

Rates and eligibility depend on the product's HS code and change periodically. Our guide to HS codes explains why getting the code right matters.

Step 7: find buyers and agree terms

Export starts with a buyer. Common routes:

• B2B marketplaces such as GlobalMart, where you can list products and respond to buyer trade leads
• trade fairs and EPC buyer-seller meets
• importers, distributors and agents in your target markets

Agree on product specifications, price, quantity, packing, delivery terms (Incoterms, such as FOB or CIF), payment terms and documents. Read our guides on Incoterms and export payment methods.

Step 8: prepare your goods and documents

• Produce and pack goods to the buyer's specification and export packing standards.
• Arrange pre-shipment inspection if required (see our pre-shipment inspection guide).
• Prepare the commercial invoice, packing list and any product-specific certificates.
• Obtain a certificate of origin if the buyer needs one, especially a preferential certificate under a trade agreement to reduce duty for your buyer.

Our export documentation checklist explains each document.

Step 9: book freight and clear customs

• Book space with a freight forwarder or shipping line (see FCL vs LCL).
• Your customs broker files the shipping bill electronically on ICEGATE.
• Customs may examine the goods, then issue a Let Export Order (LEO).
• Goods are loaded, and the carrier issues the bill of lading (sea) or airway bill (air).

Step 10: get paid and close the transaction

• Send the shipping documents to the buyer or through the banks, as agreed.
• Receive payment in your bank account in foreign currency, which the bank converts.
• The bank reports the realisation and an electronic Bank Realisation Certificate (e-BRC) is generated, which is used for incentives and GST refunds.
• Export proceeds must be realised within the period allowed by RBI regulations; talk to your bank about the current rules.

Common first-time mistakes

• Quoting without understanding Incoterms, then paying freight you didn't price in.
• Using the wrong HS code, which affects duties, incentives and the buyer's import duty.
• Shipping on open account to a new buyer without credit checks or insurance. ECGC (Export Credit Guarantee Corporation of India) offers credit insurance for exporters.
• Missing product-specific rules in the destination country, such as labelling, food safety limits or certifications.
• Errors between documents (different weights or descriptions on invoice, packing list and bill of lading), which can delay clearance or payment under a letter of credit.

Frequently asked questions

How long does it take to get an IEC?

The IEC is applied for online on the DGFT portal and is usually issued quickly once the application and documents are in order.

Do I need to pay GST on exports?

Exports are zero-rated. Most exporters file a Letter of Undertaking (LUT) and export without paying IGST, then claim refunds of input tax credit. Alternatively, you can pay IGST and claim it back.

Is an RCMC mandatory?

An RCMC is needed to claim many benefits under the Foreign Trade Policy and is required by some product-specific bodies. Many exporters get one early because export promotion councils also help with buyer contacts.

Can I export without my own factory?

Yes. Merchant exporters buy goods from manufacturers and export them under their own IEC. You still need the registrations and documents for the products you export.

Start on GlobalMart

List your company and products on GlobalMart to be found by buyers, and browse trade leads to see what buyers are asking for. If you're buying inputs for export production, post a requirement to get quotes from suppliers.