Complete Export Process Guide 2026: Steps, Payment Terms, Documents & Export Incentives
Complete Export Process Guide for Exporters
Important Steps, Precautions & Payment Terms
If you are exporting medical products, machinery, agricultural products, surgical items, or engineering goods, follow this checklist to reduce risk and maximize export benefits.
STEP 1: Verify the Buyer
Before accepting any order:
✅ Check buyer’s website
✅ Verify company registration
✅ Obtain:
- Company Profile
- Import License (if applicable)
- VAT/GST Number
- Trade References
✅ Conduct video meeting
✅ Check country risk
Precautions
❌ Never ship goods to an unknown buyer on open credit.
❌ Do not rely only on email communication.
❌ Beware of buyers requesting urgent shipment without proper documentation.
STEP 2: Send Quotation / Proforma Invoice
Include:
- Product Description
- HS Code
- Quantity
- Price
- Incoterm (FOB/CIF/EXW etc.)
- Payment Terms
- Delivery Time
Example
Product: Surgical Instruments
Quantity: 1,000 pcs
Price: USD 10 per pc
FOB Mumbai
Payment: 100% Advance
STEP 3: Negotiate Payment Terms
Safest Payment Terms
1. 100% Advance Payment ⭐⭐⭐⭐⭐
Best for new exporters.
Buyer pays before shipment.
Risk: Almost zero.
2. 50% Advance + 50% Before Dispatch ⭐⭐⭐⭐⭐
Very safe.
Suitable for customized products.
3. Letter of Credit (LC) ⭐⭐⭐⭐
Bank guarantees payment.
Best for:
- Machinery
- High-value exports
4. Documents Against Payment (D/P) ⭐⭐⭐
Buyer receives documents after payment.
Moderate risk.
5. Documents Against Acceptance (D/A) ⭐⭐
Buyer pays after agreed credit period.
Higher risk.
6. Open Account ⭐
Buyer pays after delivery.
Highest risk.
Only for trusted buyers.
STEP 4: Sign Export Contract
Contract should include:
- Product specifications
- Quality standards
- Delivery schedule
- Payment terms
- Arbitration clause
- Force majeure clause
Precautions
Never export high-value goods without a written contract.
STEP 5: Take ECGC Cover
For:
- New buyers
- African countries
- Middle East
- South America
Benefits:
- Protection from buyer default
- Political risk cover
STEP 6: Arrange Export Finance
Use:
- Packing Credit
- Export Working Capital
- Post-Shipment Finance
Benefits:
- Lower working capital burden
- Better cash flow
STEP 7: Production & Quality Check
Ensure:
✅ Product meets importing country’s regulations
✅ Correct labeling
✅ Correct packing
Precautions
Many shipments are rejected because of:
- Wrong labels
- Poor packaging
- Incorrect specifications
STEP 8: Obtain Required Certifications
Depending on product:
Medical Products
May require:
- CE Marking
- ISO 13485
- Free Sale Certificate
Agricultural Products
May require:
- Phytosanitary Certificate
- FSSAI-related compliance
- Health Certificate
Machinery
May require:
- CE Certification
- Testing Reports
STEP 9: Book Logistics
Choose:
Air Freight
- Fast
- Expensive
Sea Freight
- Cheaper
- Slower
Choose reliable freight forwarder.
STEP 10: File Shipping Bill
Through CHA (Customs House Agent).
Ensure:
✅ Correct HS Code
✅ Correct FOB Value
✅ RoDTEP Claim = YES
✅ Duty Drawback Claim = YES (if eligible)
Precautions
Wrong HS code can result in:
- Penalty
- Delayed incentives
- Customs objections
STEP 11: Customs Clearance
Documents:
- Commercial Invoice
- Packing List
- Shipping Bill
- Bill of Lading/AWB
- Certificate of Origin
STEP 12: Shipment Dispatch
After customs issues:
LEO (Let Export Order)
Goods can be exported.
STEP 13: Submit Documents to Buyer/Bank
Common documents:
- Invoice
- Packing List
- Bill of Lading
- Certificate of Origin
- Insurance Certificate
STEP 14: Receive Export Payment
RBI Requirement
Export proceeds generally must be realized within the period prescribed under FEMA/RBI regulations (check current applicable timelines with your bank and RBI updates).
Payment should come through normal banking channels.
STEP 15: Claim Benefits
RoDTEP
Generate e-Scrip through ICEGATE.
Duty Drawback
Credit received in bank account.
GST Refund
Apply through GST portal.
Major Precautions for Every Exporter
Red Flags 🚩
❌ Buyer refuses advance payment
❌ Buyer asks for shipment before payment
❌ Frequent changes in destination country
❌ Different company receiving goods than placing order
❌ Buyer insists on personal account payment
❌ Fake LC from unknown bank
Recommended Payment Terms by Order Value
| Order Value | Recommended Payment |
|---|---|
| Up to USD 5,000 | 100% Advance |
| USD 5,000–25,000 | 50% Advance + Balance Before Shipment |
| USD 25,000–100,000 | Letter of Credit (LC) |
| Above USD 100,000 | Confirmed LC + ECGC |
Exporting products internationally requires proper planning, documentation, secure payment terms, and compliance with customs regulations. This comprehensive guide explains every stage of the export process, from buyer verification and quotation preparation to shipping, customs clearance, payment realization, and claiming government incentives. Learn how to reduce risks using ECGC insurance, improve cash flow through export finance, and maximize profitability with RoDTEP, Duty Drawback, GST refunds, and other export promotion schemes available to Indian exporters in 2026.
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