Export from India: A Beginner Guide to IEC, DGFT, and Foreign Trade

Step-by-step guide to starting exports from India — IEC code application, DGFT registration, RCMC certificate, foreign currency account, and shipping documents.

Why Indian SMBs Should Consider Exports

India offers some of the most attractive export incentives globally — RoDTEP refunds, duty drawback, MEIS replacements, and zero-rated GST on exports. With dollar invoicing, your effective realisation is often 1.3x to 1.5x what you would earn domestically for the same product. Markets like the US, Europe, UAE, and Africa actively source from Indian MSMEs for textiles, engineering goods, food products, handicrafts, and services. Even small businesses with annual turnover under Rs. 1 crore can start exporting with the right setup.

Getting Your IEC Code

The Import Export Code (IEC) is a mandatory 10-digit identifier issued by the DGFT, and you cannot legally export or import without it. Apply online at dgft.gov.in using your PAN, Aadhaar, bank account, and a cancelled cheque — the fee is Rs. 500 and the IEC is issued within 1-2 working days. Note that since 2021, IEC must be updated annually on the DGFT portal, even if no changes occurred, or it gets deactivated. Linkage with GST is automatic via PAN.

RCMC and Export Promotion Council Membership

A Registration-cum-Membership Certificate (RCMC) from the relevant Export Promotion Council (EPC) is required to claim export benefits, attend trade fairs, and access market access initiatives. There are over 30 EPCs covering different product categories — for example, EEPC for engineering, AEPC for apparel, and APEDA for agricultural products. Annual membership fees range from Rs. 5,000 to Rs. 25,000, and the certificate is valid for five years. EPCs also organise buyer-seller meets and country-specific trade delegations.

EEFC Account and Export Documents

Open an Exchange Earners Foreign Currency (EEFC) account with your bank to hold up to 100% of your export proceeds in USD, EUR, or GBP without immediate conversion to INR — this helps when paying for imported raw materials or shielding against rupee volatility. Standard export documents include a commercial invoice, packing list, bill of lading or airway bill, certificate of origin, shipping bill, and Form A (FIRC). For LC-backed exports, you also need bank-vetted documents matching LC terms precisely.

Handle Export Invoicing Easily with BillBabu

Export invoices have specific requirements — zero-rated GST treatment, foreign currency line items, INR equivalent, and mention of LUT or shipping bill number. BillBabu supports multi-currency invoicing and lets you mark documents as exports under LUT (without IGST) or with IGST refund. You can also track export receivables separately and reconcile against FIRCs received from your bank, which is critical for closing your BRC and RoDTEP claims later.

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