How to start a Import and export business

Posted by Registrationwala on January 13th, 2017

Import and Export is one of most rapid form of business .Since early ages Marco polo to other International traders who came to India for the Trade. Import and Export business are done on both basis of public sector and private sector. People have been able to get more and types of resources through the network of Import/Export Business now a days. There are some procedure one need to follow before starting an Import /Export Business.

In almost all the countries a one time licensing procedure to act as an Exporter/Importer is required to be completed. In India, IEC number (Import Export Code number) to act as an exporter or importer. If you are an exporter, you would already setup an export company by following necessary government rules and regulations.

Changes have to be made to the products so that they are at par with customer demands and should be fulfilled on time. Some Countries can be considered as prospective markets. Things should be kept in mind that which Distribution and marketing channels should be used and expense in terms of money and time for every single procedure. Special challenges of the marketplace in terms of areas like competition, import control, differences in culture should be taken into account. Strategies are used to counter certain objectives.

Advantages of Exporting.

Ownership is the advantage which is specific to the firms' international experience, asset and ability of the exporter to either develop the differentiated product or low cost product with in the values chain.

Advantages of Importing

Import of raw materials and goods is one of the path to increase the profit margins. There are number of benefits in importing the goods, such as high quality, low prices, and benefits related to the international trade. The importer can have the much cheaper products from the foreign market due to low labour cost, low taxes etc.

 Government agencies provide the information of the manufacturers and producers in the foreign country so that the importer can purchase the high quality and low price goods. Also due to the government involvement reduces the transaction risk.

One should follow for successful Import/Export Business.

• Team in work should be aware of each and every single decision taken in the company.
• Advisors should involved in the Business plan execution of what the business should work.
• Creation of proper time-line of export activities and Proper assignment should be assigned in a uniform manner.
• Each and every type of customer should be kept in mind.
• Deadlines should be followed uniformly.

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Some points with which you can start your export business

a)Registration of your Business as Legal Entity like Proprietorship Firm/Partnership Firm/LLP/Company.

b) Application of IEC Code for your business.

c) Application of VAT/TIN Registration for your business.

d) Hiring of Custom Clearing Agent.

e) Usage own freight forwarder.

Some countries do not allow traders to do import/export Business. Despite of the fact that  no nation can survive totally on its own without interaction with other countries. Interaction of such activity is always a need to relate and engage in exchange of goods, it can either be in terms of raw materials, semi-finished goods or finished goods.

This gap can be monetized by you in a form of movement of goods from where it is in abundance and above the demand to a nation where there is a high demand for such products. Trade exists because one group or country has a supply of some commodity or merchandise that is in demand by another as the world becomes more and more technologically advanced, as we shift in subtle and not so subtle ways toward one-world modes of thought, international trade becomes more and more rewarding, both in terms of profit and personal satisfaction.

If you think that starting an export and import business is what you want to do, then you may want to consider starting an import export business. Here are some business ideas that you can begin to act on.