Your First Export From India: IEC, AD Code, LUT and Realising Proceeds

A first export involves several registrations and documents that domestic sales don't. Getting them in place before the order ships avoids delays at the port and with the bank. This guide walks through them.

1. Import Export Code

Get an IEC from the DGFT. It's linked to your PAN and needed for customs clearance.

2. AD Code Registration

Your bank's Authorised Dealer (AD) code must be registered with the customs ports you'll export through. This links your export shipments to your bank account, so export proceeds can be tracked. It's done through the customs system for each port.

3. GST Letter of Undertaking

File a Letter of Undertaking (LUT) on the GST portal to export without paying IGST. It's filed each financial year. Without it, you pay IGST and claim it back.

4. Export Promotion Council Registration

A Registration-cum-Membership Certificate (RCMC) from the relevant export promotion council is needed for some Foreign Trade Policy benefits.

5. The Shipment

• Commercial invoice and packing list.
• Shipping bill, filed with customs electronically, usually through a customs broker.
• Bill of lading or airway bill from the carrier.
• Certificate of origin, where the buyer's country requires it.
• Product-specific certificates, like phytosanitary or pharmaceutical documents.

6. Realising Export Proceeds

Export proceeds must be realised and repatriated to India within the time allowed under RBI rules. Your bank tracks each shipping bill against remittances received, and unrealised shipments are followed up.

7. GST Reporting

Report exports in your GST returns as zero-rated supplies, and claim refunds of unused credit if exporting under LUT.

Getting Help

Think Filing sets up first-time exporters with IEC, LUT and GST refunds, and coordinates with your bank and customs broker.