Gives you a general insight about how to start a Import - Export Business and basic setup of a business.

1. How to Start Import & Export Business
1. Introduction
a. Why Import – Export business exist
b. Types of Channels
2. Market Research
3. Setting up the business
4. Income and Billing
Introduction
International Trade has always been the cornerstones of historic civilisations, countries and businesses since
time immemorial. Expansion of nations, establishment of major trade routes catering to spices and silks have
been ancestors to modern trade today – characterised by a movement toward technologically advanced,
more rewarding and satisfying means of finding a foreign footprint for your brand.
From the most common, everyday products like buttons to niche products like watches and technical
machinery it is guaranteed that your business will find lucrative opportunities in some part of the
world!
a. Why does the world need Import-Export?
i. Availability: Not all things grow everywhere. The entire world wants to enjoy
apples from Kashmir, beers from Germany, organic fruits from Netherlands
or French cheese!
ii. Cachet: Some businesses export more than just products. They package
export the entire image and aura of a classier original that can’t be found
anywhere else.
iii. Price: Price plays a huge factor in the global flow of goods. Many products can
often be manufactured or assembled in foreign factories for far less money
than if they were made on the domestic front.

2. b. Types of channels in Import Export business
i. Manufacturing industries: These companies procure (domestic or import)
raw materials, process them and export them with added value. They have
expertise in developing a product and these products have demand abroad.
ii. Traders: These people are like wholesalers: they identify a particular need
in local market, find manufacturers/exporters abroad to supply the product
in demand buy the product from them and sell it in the local market with
their margin. The ownership of the goods is with the trader in this segment
and therefore high risk is involved if he is unable to sell the products
iii. Indenting (Commission agent): This person acts as a bridge between the
exporter/importer and the local business. They do not take ownership of the
products. They only charge a commission for the developing the market
locally for the exporter/importer
How to go about your Market Research
Here's a list of areas you need to look into during your market research:
1. Your product or service
2. Your target consumer (mass-market consumer, heavy industry, light industry, medical
or hospital use, government, business or professional)
3. The country or countries you’ll be exporting to or importing from
4. The trade channels you plan to use (direct sales, trader, indenting agent)
Setting up the business
1. Basic business setup
- Register the firm
- PAN of Firm
- Current account
- Register with GST for getting GST number
2. Get IEC code. IEC is mandatory for doing Export & Import business.
3. Apply for RCMC (Registration Cum Memorandum Certificate) from the respective Export
Promotion Councils which monitor the trade of the commodity that you are dealing with.
4. Register with Customs department of the port through which you will be doing imports /exports

3. Income and Billing:
As an international trader, you're an intermediary in the buying and selling, or importing and
exporting, transaction. Therefore, you have to determine not just the price of the product, but the
price of your services as well. These two figures are separate yet interactive.
Since the fee for your services will impact the success of the product, you may ultimately determine
to change your pricing structure. You don't want to undercharge your patron so that you can't cover
your expenses and make a profit, but you don't want to overcharge and reduce the competitiveness
of your business enterprise and the products you constitute.
Import/export management companies use two basic methods to price their services:
a. Commission: Import/export control groups usually perform on a commission basis of
about 10 percentage. Those fees are primarily based at the product fee from the
manufacturer. To give you the final fee, you'll want to add other prices to this parent: any
unique marking or packaging, shipping, insurance and any consultant or distributor
commissions that you will pay to others in the change channel. as soon as you've got
arrived at a very last charge, you'll take a look at it towards your competition' expenses. If
your product's rate is comparatively low, you could bump up your fee percent.
b. Retainer: If the manufacturer can’t bargain rate sufficiently or in case you experience
that the product could be a hard sell, you'll want to invite for a flat retainer. You'll
pass all the prices of marketplace research alongside to the manufacturer. Through
taking a retainer, you assure yourself a hard and fast profits as opposed to one tied via
commission to a "trouble" product.
i. Your salary
ii. Overheads of office
iii. Profit
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