Plenty of Indian products already sell abroad without their makers ever planning it: a customer in Dubai finds a Jaipur quilt on Instagram, or a buyer in Toronto asks a Coimbatore textile unit for samples. The first enquiry is exciting. Then come the questions: do I need an export licence, what is an IEC, why does the bank keep talking about an AD code?
This guide walks a first-time exporter through the basics in order. It covers the registrations, the paperwork foundations and the first shipment decisions. It is general information, not legal advice. Export rules change, so confirm your specific case with a chartered accountant or a licensed customs broker.
Step 1: Check that your product can be exported
Before any registration, confirm that your product can leave India and enter the buyer’s country.
- India’s export policy. The DGFT’s ITC(HS) export schedule classifies items by HS code. Most goods can be exported without a licence, but some are restricted (needing an authorisation) or prohibited. Find your product’s HS code and check its policy.
- The destination’s rules. The importing country may ban the product, need certificates, or set labelling, testing or registration requirements. Food, cosmetics, supplements, plant and animal products and electronics are the usual problem areas.
- Product-specific Indian requirements. Some products need certificates or registrations with a sector body before export.
If you skip this step, everything else can be wasted effort.
Step 2: Set up the business basics
You need a business identity that banks, the DGFT and customs can all recognise:
- A PAN for the business (your own PAN if you are a sole proprietor).
- A current account in the business name with a bank that handles foreign exchange.
- A valid business address.
- GST registration, which most exporters of goods will need. Your CA can confirm.
Step 3: Get your Importer Exporter Code (IEC)
The Importer Exporter Code is the basic registration for anyone importing or exporting goods commercially. It is issued online by the Directorate General of Foreign Trade (DGFT).
What the DGFT portal states:
- To apply, the firm must have a PAN, a bank account in the firm’s name and a valid address.
- The IEC issued is the same as the firm’s PAN.
- The DGFT may physically verify the address.
How it works in practice:
- Register on the DGFT portal and log in.
- Fill in the IEC application with your business, bank and address details.
- Sign with Aadhaar e-sign or a digital signature certificate, as the portal allows.
- Pay the application fee online. The fee schedule (Appendix 2K of the Handbook of Procedures) lists Rs 500 for an IEC application at the time of writing; check the portal for the current amount.
- Download the e-IEC once it is issued.
Keep it updated. IEC holders must update or confirm their IEC details online every year during April to June, even if nothing has changed. An IEC that is not updated can be deactivated, which stops customs clearance until it is updated again. Put a recurring reminder in your calendar for April.
Step 4: Register for GST export compliance
Exports of goods are zero-rated under GST. In broad terms you have two routes:
- Export under a Letter of Undertaking (LUT) without paying IGST, filed online on the GST portal in Form GST RFD-11 before you export. You then claim a refund of input tax credit where eligible.
- Pay IGST on the export and claim a refund of that tax.
Many exporters prefer the LUT route because it avoids tying up cash in tax refunds. The conditions and refund process need care, so set this up with your CA before the first shipment.
Step 5: Register your AD code on ICEGATE
The Authorised Dealer (AD) code identifies the bank branch that will handle your foreign exchange. Your bank gives you the code, usually with a letter on its letterhead confirming your account details.
You then register it on ICEGATE, the customs e-filing portal, under bank account management. ICEGATE records the foreign remittance account against a customs location code, with the bank name, AD code and account number, and customs approves it before it becomes active. In practice:
- Register your firm on ICEGATE using your IEC.
- Add the foreign remittance (AD code) account for the port, airport or courier terminal you will export through.
- Upload the bank’s authorisation and supporting documents.
- Wait for customs approval.
If you later export through a different location, you may need to register the AD code there too. Many exporters let their customs broker handle this, but you should still understand it, because a missing AD code registration can hold up a shipment.
Step 6: Decide whether you need an RCMC
The Registration-cum-Membership Certificate (RCMC) is issued by Export Promotion Councils and commodity boards, which act as registering authorities for their product groups. According to the DGFT:
- You need an active IEC to apply for an RCMC.
- You declare your main line of business in the application, which decides the council you register with.
- An RCMC is valid for five financial years, ending 31 March of the relevant year.
An RCMC is mainly needed when you apply for certain authorisations or benefits under the Foreign Trade Policy. Not every exporter needs one on day one, but membership also gives you access to the council’s trade information, buyer-seller events and guidance. Check whether the schemes you plan to use require it.
The registrations at a glance
| Registration | Issued by | What it is for | When you need it |
|---|---|---|---|
| IEC | DGFT, online | Identifies you as an importer or exporter | Before your first commercial export |
| GST and LUT | GST portal | Lets you export without paying IGST upfront | Before the first export, renewed each financial year |
| AD code registration | Your bank, registered on ICEGATE | Links shipments to your foreign exchange bank account | Before filing export declarations at that location |
| RCMC | Export Promotion Council or commodity board | Needed for certain FTP authorisations and benefits | When you plan to claim those benefits |
| Product licences or certificates | Sector regulators and bodies | Product-specific compliance | Depends on the product and destination |
Step 7: Price and get paid correctly
Agree on an Incoterm with the buyer, such as EXW, FOB, CIF or DAP. It decides who pays for freight, insurance and duties and where risk passes. Our guide to international shipping costs from India breaks down the cost components and duty terms.
Receive payment through banking channels so it can be matched to your shipments. RBI rules require export proceeds to be realised within a set period, and your bank will track this against your shipping bills. Keep invoice values, shipping documents and bank credits consistent.
Step 8: Plan your first shipment
For a first export of samples or small orders, an international courier or postal export is often the simplest route. For larger consignments, air or sea freight through a freight forwarder and customs broker usually makes more sense. Our comparison of international courier, air cargo and freight helps you choose.
You will need a commercial invoice, packing list and an export declaration filed with customs, plus any product certificates. The export shipment documents guide lists them in detail.
Ready to send your first export order? With Courier Tales you can book international shipments from your dashboard: compare carriers for the destination, see an estimated price, and send the parcel to our warehouse, where it is re-measured before the final price is set.
A first-export checklist
- Product’s HS code identified and export policy checked
- Destination country’s import rules checked
- Business PAN, current account and GST registration in place
- IEC issued, with an April reminder to update it every year
- LUT filed for the current financial year (if using the LUT route)
- AD code registered on ICEGATE for your export location
- RCMC obtained, if your planned benefits need it
- Incoterm and payment terms agreed in writing
- Shipping mode chosen and documents prepared
Final thoughts
Exporting from India is mostly about doing a short list of registrations properly and keeping them current. Get the IEC, sort out GST, register your AD code, decide on RCMC, and keep your invoices, shipments and bank receipts consistent. Then take one small order to a buyer who already wants your product, learn from it, and grow from there. For the shipping side of that first order, read our guide to international shipping from India.
When you are ready to ship, create your Courier Tales account and book your first international shipment from the dashboard.
Frequently asked questions
Do I need an IEC to export from India?
For commercial exports, generally yes. The Importer Exporter Code is issued online by the DGFT and is linked to your business PAN. Some personal and specified categories are exempt, so check with a customs broker if you are unsure.
How long is an IEC valid?
An IEC does not need periodic renewal in the traditional sense, but holders are required to update or confirm their IEC details online every year, in the April to June window. If it is not updated, the IEC can be deactivated until the update is done.
What is an AD code and why do exporters need it?
The Authorised Dealer (AD) code identifies the bank branch that handles your foreign exchange transactions. Exporters register it on ICEGATE for the customs location they export from, so that shipping bills can be linked to the bank that will receive the export proceeds.
Is RCMC mandatory for all exporters?
No. An RCMC from the relevant Export Promotion Council or commodity board is needed mainly to apply for certain authorisations and benefits under the Foreign Trade Policy. Many small exporters get one anyway for the council's support and information. Check whether the benefits you plan to claim need it.
Do I pay GST on exports?
Exports are treated as zero-rated supplies under GST. You can generally export under a Letter of Undertaking without paying IGST, or pay IGST and claim a refund. Confirm the right route for your business with a chartered accountant.
Sources
- IEC Profile Management, Directorate General of Foreign Trade, Government of India (accessed 2 November 2026)
- e-RCMC, Directorate General of Foreign Trade, Government of India (accessed 2 November 2026)
- User Manual: Bank Account Management on ICEGATE 2.0, ICEGATE, Central Board of Indirect Taxes and Customs (accessed 2 November 2026)
- DGFT revises FTP 2023 to introduce registration fee for Import Monitoring Systems (text of Public Notice 02/2025-26, Appendix 2K), TaxGuru (accessed 2 November 2026)
Courier, marketplace and tax rules change. Check the current terms with your courier, marketplace or adviser before relying on them.