1. What License is Required for Exporting? What is IEC?

For exporting, no specific licenses are required. Since 1991, all types of export licenses have been abolished. To export, only a registration with DGFT (Directorate General of Foreign Trade) is needed, known as Importer Exporter Code (IEC). To obtain IEC registration, you need to provide a PAN card, bank account details, Aadhaar card, and pay a fee of INR 500. You can apply for IEC registration online at the DGFT website (dgft.gov.in). Any Indian citizen or business entity with a PAN card can apply for IEC registration.

2. What Should Be Considered When Exporting?

Exporting is a commercial process involving business relations between exporters and buyers. Decisions include finding buyers, determining which products to sell, setting prices, and managing product quality and quantity. These decisions are business-related and not influenced by the government. Exporters are legally able to conduct business with buyers from any country.

3. What Benefits Does the Government Provide for Exporting?

The most significant benefit is that exporting is free from taxes or fees. Exporting is tax-free under the WTO (World Trade Organization) guidelines, which state that products should be exported without any country-specific taxes. In India, exporters can receive a GST refund on exported products or export goods without GST. Various indirect taxes like customs duty, VAT, electricity duty, and stamp duty are refunded under schemes such as RoDTEP, RoSCTL, and DBK. For ongoing exports, raw materials can be imported duty and GST-free under the Advance Authorization scheme, and necessary machinery can be imported duty and GST-free under the Export Promotion Capital Goods (EPCG) scheme.

4. Which Organizations Should You Be Aware Of for Exporting?

   • DGFT (Directorate General of Foreign Trade): Under the Ministry of Commerce, DGFT regulates and promotes all types of imports and exports in India. DGFT offices are located in major cities across India, including Indore in Madhya Pradesh. For more information, visit dgft.gov.in.
   • Customs: Customs, under the Ministry of Finance, is necessary for importing and exporting products. Customs offices are located at major ports and Inland Container Depots (ICDs) where no sea ports exist. For more information, visit icegate.gov.in.
   • GST (Goods and Services Tax): Exports are GST-free. If exporters have purchased products with GST, they can get a refund during the export process. It is also possible to export products without paying GST. The CGST (Central Goods and Services Tax) and SGST (State Goods and Services Tax) departments manage these processes.
   • Banks: Various banking services are required for export transactions, including advance payments from buyers, export finance, Letters of Credit, insurance, and Bank Realization Certificates. Major banks like SBI, PNB, BoB, and private banks like HDFC, ICICI, Axis, Kotak, and Yes Bank provide these services. For more information, contact your bank’s branch or website.
   • Export Promotion Councils: The Ministry of Commerce has established export promotion councils for each sector over the past 70 years. These councils organize exhibitions, seminars, and provide support to exporters. For example, registration with FIEO (Federation of Indian Export Organisations), APEDA (Agricultural and Processed Food Products Export Development Authority), and EEPC (Engineering Export Promotion Council) is recommended. Information about these councils can be found on commerce.gov.in > About Us > Export Promotion Council.
   • Insurance on Export: Export insurance protects against non-payment by buyers due to country or buyer default. The ECGC (Export Credit Guarantee Corporation) provides such insurance, compensating exporters for unpaid amounts. ECGC offices are in major cities, including Indore. For more information, visit ecgc.in.
   • Logistics Companies: Products are generally shipped via sea, air, or land. For international shipments, sea routes are commonly used, and logistics services are provided by private companies. These companies transport goods to ports in Dubai, Hong Kong, Singapore, etc.
   • State Government Agencies: State governments, including Madhya Pradesh, promote exports through various departments like the Industry Department, MSME Department, and Agriculture Department. MPIDC (Madhya Pradesh Industrial Development Corporation) has an Export Cell and organizes workshops under the “One District – One Product” scheme. For more information, visit invest.mp.gov.in.
5. Which Products Should Be Exported?

Before exporting, it is essential to know the product category. If a product is ‘prohibited,’ it cannot be exported. If it is ‘restricted,’ an IEC license from DGFT is required. Products in the ‘free’ category can be exported without any license. In India, about 96% of products fall into the ‘free’ category. You can choose products based on your experience, capability, interest, and financial capacity, such as agro-products, engineering products, chemical products, and plastic products.

6. How to Obtain Information About Products? How to Get Export Data?

After selecting a product, knowing its HS (Harmonized System) code is crucial. Domestic trade now operates under HS codes. Data about product categories, export destinations, and quantities can be found on dgft.gov.in > Trade Statistics. This data is official and free. Export data is also available in ODOP (One District One Product) booklets.

7. How to Find Buyers for Exporting?

Finding buyers is a common challenge for exporters. The government and export promotion councils facilitate buyer connections by organizing exhibitions and buyer-seller meetings. The WTO provides buyer lists via trademap.org. Private websites and e-commerce platforms also offer buyer lists. Exporters can attract buyers by creating websites, social media pages, and registering with export promotion councils.

Disclaimer: This is generalized information for starting export. The readers are advised to check all information with official sources.

**For more details visit https://mptradeportal.org/

One District One Product (ODOP) in Madhya Pradesh

Brief Summary: One District One Product (ODOP) is an initiative by the Government of Madhya Pradesh aimed at fostering economic growth and promoting local products unique to each district. The program focuses on identifying, promoting, and providing support to a product from each district that has potential for large-scale production and export. This initiative not only boosts local economy and employment but also helps in branding and marketing these products globally.

Elaboration on ODOP:

1. Objective:
   • The primary objective of ODOP is to turn each district of Madhya Pradesh into a manufacturing and export hub by promoting products that are unique to the district.
   • It aims to create sustainable employment and self-reliance by enhancing the local skill set and providing market access.
2. Product Selection:
   • Each district identifies one product that is traditionally or uniquely produced in that area.
   • The selection process involves assessing the product’s historical significance, production capacity, and market potential.
3. Implementation Strategy:
   • Skill Development: Training programs are conducted to improve the quality and production efficiency of the chosen products.
   • Infrastructure Development: Upgrading infrastructure to support production, storage, and transportation.
   • Marketing and Branding: Creating a strong brand identity for the products and facilitating their marketing on national and international platforms.
   • Financial Assistance: Providing access to credit and financial assistance for local producers and small-scale industries.
4. Support Mechanisms:
   • Collaboration with various government schemes and policies to provide comprehensive support.
   • Partnerships with private sector entities and industry experts for technology transfer, quality control, and market linkage.

Data on ODOP in Madhya Pradesh:

1. Economic Impact:
   • The ODOP initiative has significantly contributed to the local economy by increasing the demand for district-specific products.
   • Employment opportunities have risen due to the increase in production and export activities.
2. Examples of ODOP Products:
   • Chhindwara: Handloom sarees and fabrics
   • Indore: Namkeen (savory snacks)
   • Bhopal: Zardozi embroidery
   • Gwalior: Stone crafts and sculptures
3. Growth Metrics:
   • Production Increase: Districts have reported an average production increase of 20-30% since the inception of ODOP.
   • Export Growth: Many ODOP products have found new markets internationally, leading to a rise in exports by approximately 15% annually.
   • Skill Development: Over 10,000 artisans and craftsmen have received specialized training under the ODOP scheme.

List of ODOP products of Madhya Pradesh

**For more details visit https://mptradeportal.org/