In today’s era of globalization, the importance of Import Export has increased immensely. Today, if there is no production of any commodity or food in the country. So that country can import that particular item, or food, from the producing country. Just the contrary, if the production of a commodity or food in a country exceeds its usefulness. So that country can export that particular item or food to outside countries. However, it is worth noting that the foreign trade policy regulates trade between international countries. In this, all the conditions, such as what goods, from which country, can be imported or exported? And which items are prohibited. And what will be the excise duty etc. on them. Etc. Everything is contained.
Perhaps this is the reason why a common trader finds the process of Import Export quite complicated, and time consuming. But despite this, a lot of people are searching on the internet, how they can start this kind of import-export business. But before that, let us give some further information about this business. Would like to tell the readers that the foreign trade policy varies with time and situation. Maybe, the country from which we can get goods, or goods, today. In the coming times, the government should ban imports from there, or increase taxes etc. so much that no one wants to buy goods from there.
On the other hand, the country from which, today we cannot ask for goods or goods, in the coming times, the foreign trade policy may allow this. This is to say that, to start an Import Export Business, the aspiring entrepreneur must be well aware of all these things.
What is Import Export?
It is one such company if we talk about the import-export business. Which provides the facility to trade goods and goods between domestic and foreign companies. In other words, we can call the Import Export unit one such company. Which imports goods from different countries and sells them in the domestic market. The process of buying goods from outside countries and selling them in the domestic market is called import. And vice versa, the process of selling domestic goods in foreign markets is called export.
It is clear from the above definition that in the import-export business, the entrepreneur seeks goods from outside countries and sells them in the domestic market. And sells household goods and goods to foreign markets.
Opportunities in Import Export Business
Although not only in India, but all over the world, Import Export Business is one of the most famous, and popular businesses. And it has also been observed that, in terms of export of products, every country has its own, unique selling proposition. Through import-export trade, the balance in trade can be maintained. Globally, the needs of the people can also be met. Suppose there is no rice in any country, and in one country there is a lot of rice. So in a situation where there is a lot of rice. The country, where there is no rice, can export rice to it.
The same rule applies to other items as well. That is to say, there is no such nation or country. Where everything is produced according to their requirement. Therefore, import-export trade is also helpful in meeting the needs of those nations. And from where the export is happening, the country is also getting foreign capital. Our country, India too, is the leader in a wide range of products. Coconut, ceramic tile, cereals and pulses, coffee, leather items etc. are the main among them.
Which are exported in large quantities to outside countries. Apart from this, many such items, such as electronic toys, machinery, fertilizers, glass, etc., are items that are imported. The entrepreneur starting the Import Export Business should be fully aware of what commodities or goods our country imports. And what goods and goods it exports.
How to start import-export business?
There are certain complexities in starting the import-export trade. But this type of business is included in the list of very well-known businesses. As it is a business connected to other countries, selling goods and getting goods from there. Therefore, it has been regulated under the Foreign Trade Policy. These foreign trade policies vary, depending on time and circumstances. That is because, business political relations with other countries, domestic demand and production, etc., continue to affect it.
Suppose there is such a thing now. Which is produced in its own country, India. And today it can be exported in large quantities. But after the next ten years, its production decreases, and that commodity is also necessary for the people of the country. So the government will have to ban the export of that commodity. So that domestic demand is met first. So let’s know how any interested person can start their own Import Export Business.
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1. Select Product
Technically speaking, the selection of product is the most important criterion for starting an Import Export business. Because, if the entrepreneur selects good products to start the import-export business, then, the chances of getting success in his business become more. To choose a product, the entrepreneur needs to do a lot of research. But the most important thing, which is for product selection, is that in the domestic market, what is the item that is in high demand, but the supply or production is very less. The product, which is more in demand in the domestic market, and the supply is less, the entrepreneur can import it from outside countries, and sell it in the domestic market. But keep in mind, that item should not be banned or illegal.
Similarly, a commodity that has more supply, or production, in the domestic market, and demand is less. The entrepreneur can export that item to outside countries. So to start Import Export Business, the entrepreneur must first select the product.
2. Manage office
To start the Import Export Business, the entrepreneur has to manage an office, and a warehouse or shop, etc. The office can be managed by the entrepreneur in any local market. And it is not necessary that in the initial stage, the entrepreneur should keep the office big. Rather small offices, in which three to four employees can work easily, entrepreneurs can start this business even by setting up such an office. But the entrepreneur will also have to take up space for the warehouse and shop, from where he can sell goods to his customers. Or exportable goods to airports or ports.
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3. Obtain the required license and registration
To start their own Import Export Business, the entrepreneur may need to complete many formalities.
- A company name search, and the need to register that name, may be required.
- The entrepreneur is required to register his business under one of the proprietorships, One Person Company, Private Limited Company, etc.
- GST registration may be required to open a current account with the bank, in the name of PAN and business.
- Shops and Establishment registration with local authority, Municipal Corporation, etc., may be required.
- For import export, import export code is required.
- From the Export Promotion Council, a registration less membership certificate may be required.
- To register your enterprise under MSME, enterprise registration may be required.
4. Select Product Supplier or Buyer
Now that the entrepreneur has completed all the processes to start Import Export Business. So now his next step should be to find the supplier or buyer of the product he has selected. If the entrepreneur wants to export something. So he has to find the domestic supplier to ensure the availability of that item. Which will deliver him, coming to his place of business. And if the entrepreneur has imported an item from outside countries, then the entrepreneur has to find a buyer in the domestic market.
Many such agencies, or consultancies, also exist in India. Those who provide training to entrepreneurs connected with import-export, to make them aware of techniques of finding supplier/buyer. The entrepreneur can also get such training if desired.
5. Start import export
To start Import Export, the entrepreneur also needs Freight Forwarder. It is a company that ships the goods or goods of the entrepreneur to outside countries. And brings it from outside countries to the country. That is to say, the entrepreneur needs to tie up with such a company. Who will bring his products to his customers? The entrepreneur can export products that are produced here in large quantities. And can import those products, which are more in demand here.
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