How to Start Exporting Handicrafts from India

Exporting handicrafts from India can be an exciting venture, but it requires careful planning and adherence to specific procedures. This guide will help you understand the basics of exporting handicrafts and the steps you need to follow to get started.

Understanding Export Types

Let’s break down the term 'export' into two categories:

Retail Export: Selling individual items or small batches directly to retail customers around the world. This is a great starting point for those who want to test the market without a significant investment. Bulk Export: Selling larger volumes of products to wholesale buyers or distributors. This typically requires more legal and financial planning, but can yield greater rewards.

Key Steps to Export Handicrafts from India

Before you dive into exporting, there are several crucial steps you need to take. Below is a detailed overview of the process:

Step 1: Register Your Business and Obtain a Company PAN

Start by registering your business legally. You can choose a business structure that best suits your needs, such as a sole proprietorship, partnership, limited liability company, or another suitable legal entity. Additionally, you will need to apply for a Permanent Account Number (PAN), which is essential for tax compliance in India.

How to Apply for PAN: You can apply for PAN online through the Government’s website. The process typically takes just a few days to complete.

Step 2: Obtain a 10-Digit Import-Export Code (IEC) and Register with DGFT

The Import-Export Code (IEC) is a mandatory requirement for any exporter or importer in India. You need to register with the Director General of Foreign Trade (DGFT) to get this code. The IEC is an essential document for international business transactions.

How to Apply for IEC: You can apply for the IEC online on the DGFT website. It is a straightforward process that involves submitting the necessary documents and paying the required fee. Once your application is approved, you will receive your IEC within 15 days.

Step 3: Register with EPCH

The Export Promotion Council for Handicrafts (EPCH) is a key organization that promotes the export of handicrafts from India. They offer various benefits and support services to their members.

How to Register with EPCH: You can register with EPCH online by filling out the application form and paying the membership fee. This step can provide significant advantages in marketing and sales.

Step 4: Find Buyers and Markets for Your Handicraft Products

Identifying the right buyers and markets is crucial for successful exports. Here are some strategies:

Trade Directories: Use online directories and resources to connect with potential buyers. Online Marketplaces: Platforms like Amazon Global Selling can be a convenient way to reach 18 international marketplaces with ease. Trade Shows and Exhibitions: Participate in trade shows and exhibitions to showcase your products and establish business relationships.

Aside from the above, you will also need to comply with other requirements and formalities. These include GST registration, export documentation, packaging, labeling, shipping, and payment methods. For detailed information, you can refer to online resources or consult a business advisor.

Conclusion

Exporting handicrafts from India is a rewarding venture that can enhance your business and reach new markets. By following these steps and ensuring compliance with all legal and regulatory requirements, you can establish a successful export business.

FAQ

Q: What is the IEC?
A: The Import-Export Code (IEC) is a unique 10-digit code provided by the Directorate General of Foreign Trade (DGFT) to all importers and exporters in India. This code is necessary for all international business transactions. Q: How long does it take to get an IEC?
A: Once your application is submitted through the DGFT website, you can expect to receive your IEC within 15 days. Q: Can I export without an IEC?
A: No, an IEC is mandatory for all exporters and importers in India to carry out international trade activities.