How to Process Your First Export Order Easily?

An export order refers to a formal request placed by an international buyer to purchase goods or services from a seller in another country. Processing an export order involves multiple steps, including documentation, regulatory compliance, packaging, shipping, and payment collection. It is essential for first-time exporters to understand each step to ensure successful global trade. Venturing into international trade for the first time is exciting but requires thorough preparation and attention to detail. One of the most critical tasks as an exporter is learning how to process your first export order. Whether you’re sending small packages or bulk shipments cross-border, you must understand each step involved to avoid common pitfalls and bring a seamless customer experience to your global clients.

This guide will explain how to process your first export order, from launching your export business to shipping your goods and receiving payments. 

What Are the Steps to Launch Your Export Business?

Exporting involves more than just shipping products overseas. It requires understanding legal requirements, building strong relationships with carriers, and ensuring your product meets international market standards. Here’s a step-by-step guide you can follow: 

Get the Necessary Licences

The first thing you’ll need to get your products across borders without legal trouble is a relevant licence and permit. Certain types of licences or permits you may need depending on what kind of product you’re exporting and the country you’re exporting it to. You may require an Export License, Certificate of Origin, or other mandatory documentation. You need to review your country’s export regulations and policies to comply with them before processing your first export order.

How Can You Register with Export Promotion Councils?

The Export Promotion Council (EPC) is an authorised body that provides guidance, support, and access to international markets. India has about 14 Export Promotion Councils under the Department of Commerce’s administrative control.

So, when you register with one of these government-approved councils, you get access to many valuable resources that help you stay informed and updated about industry changes and opportunities.

How Do You Identify and Prepare for Your Target Market?

The export process does not have a one-size-fits-all approach. Every country has its own set of export-import regulations or policies, customer behaviour, preferences, and restrictions of types of goods, which you need to know and adhere to for successfully exporting the right products to those nations.

So, consider conducting thorough market research to know your best customers or target markets for your offerings, paying attention to demand, competition, and trade restrictions.

Get Your Product Export-Ready 

Now that you’ve identified and selected your target market customise your product to meet the local standards and customer expectations. It might ask for a slight or major modification in packaging labelling or product features. Besides that, your product must also comply with the importing country’s regulations, including health, safety, and environmental standards.

For instance, imagine you’re an Indian manufacturer who wants to export organic skincare products to the European Union. Now, the EU has strict regulations on ingredient transparency and eco-friendly packaging. So, you may need to reformulate your product to exclude certain chemicals banned in Europe and switch to biodegradable packaging to comply with these regulations. Plus, they require the labelling to include specific details like ingredient lists in multiple languages and certification symbols to indicate compliance with the EU standards.

What Should You Check While Reviewing Export Orders?

When your export business starts running, you must shift your focus on how to process your first export order, which involves reviewing the terms of the order carefully and making sure you and your buyer agree on the details. Here’s how you can review export orders: 

Confirm the Export Contract

After receiving your export order, review the contract thoroughly. Scan through all the important details, including the type and quantity of goods, payment terms, delivery timelines, and responsibilities of the buyer and shipper regarding shipping and insurance. Clear your doubts about the export order promptly with your buyer before moving forward.

Agree on Payment Terms

Setting clear payment terms is crucial. Depending on your agreement with the buyer, payments can be made in advance, via a letter of credit, or upon delivery. Different payment modes have merits and demerits. Some may entail more risk than others. So, you must understand those terms and determine the most secure payment options to protect your interests.

Check Compliance with Import Regulations

Ensure you comply with any regulations imposed by the countries you’re exporting to because each one has some. If you fail to fulfill these regulatory requirements or don’t abide by the restrictions, your shipment could be withheld by concerned authorities or cause trouble at customs. So, double-check those customs duties, import taxes, and any specific regulations related to the product you’re shipping to avoid delivery delays due to negligence. 

Arrange for Shipping and Insurance

Shipping is one of the most important aspects of export orders and must be done correctly for successful and timely deliveries. Therefore, you either need proper knowledge and experience in overseas shipping, or you can collaborate with a reliable, well-known, and experienced logistics provider, such as ShiprocketX, to deliver your international shipments in the best condition and on time. Additionally, take insurance cover to avoid possible financial losses due to theft, loss, or shipment damage on the way. 

What Steps Are Involved in Processing the Export Order?

The next phase involves executing everything from packing and shipping to handling documentation and involves the following steps:

Pack Your Goods Securely

Packaging plays a critical role in ensuring the safety of your shipment. The security of your products depends on how well you package and the type of materials you use for different items. For example, you’d need more protection for fragile items, leak-proof packaging for liquid products, and so on.

International shipments can be long and may face rough handling, so your packaging must be durable enough to protect the products during transit. You must use high-quality materials and ensure that your shipment’s packaging complies with international shipping standards, as the destination country may have established norms.

Prepare Export Documentation

Accurate and complete documentation is what you need to pass through those customs during international shipping. The paperwork is important because it ensures that your goods reach the buyer without delay. These are some of the key documents you’ll require while exporting goods:

• Commercial Invoice: A detailed invoice outlining the goods being sold, their value, and terms of sale.
• Packing List: A document specifying the contents, packaging type, and weight of each package.
• Bill of Lading (B/L): A contract between the exporter and the shipping company that details the transportation and receipt of the goods.
• Certificate of Origin: Proof of the country where the goods were manufactured, required by customs authorities.
• Export License (if applicable): Documentation authorising the export of restricted goods.

You can avoid many potential delays by having these documents sorted and double-checking them for accuracy.

Clear Customs

Customs clearance is key to successfully processing and delivering your products. You need to take care of the intensive paperwork and duties at Central Excise. You can pay excise duty and claim a rebate later, making the clearance process quicker. You’ll have to submit an ARE-1 form to get this part done. Alternatively, the Central Excise may inspect your goods before clearance. If you’re a manufacturer-exporter, you can skip the upfront duty payment by getting a bond or letter of undertaking. However, don’t forget to have all your documents in order to avoid unnecessary trouble.

Pre-Shipment Inspection

After getting clearance from the Excise department, Customs will inspect your goods. Upon completing the inspection and getting satisfactory results, a customs officer will issue three copies of a certificate – one for the importer, one for you, and one for Customs. You may opt for a detailed inspection, in-process quality check, or even self-certification, depending on what works best for your business. This inspection will give you proof that every law is being adhered to before your goods leave the port, providing peace of mind to you and your buyer. 

Choose a Shipping Partner

In this step of the export process, you’ll need to work with a Clearing and Forwarding (C&F) agent. They manage packing, labelling, and getting your goods to the port. They also organise transportation and even tackle customs clearance and extensive paperwork throughout the process. This helps move your goods smoothly from your factory to the final destination.

Book and Track the Shipment

Once your documentation is ready, book your shipment. You can do this yourself or hire a freight forwarder to outsource the task. Partner with a reliable logistics provider offering high-quality service, global shipping experience, and reputation, whether you’re shipping by sea, air, or land. Once your shipment is booked and the shipping process has begun, start tracking it to monitor its status. 

A good shipping firm will have facilities like an advanced tracking system with real-time updates to keep you and your end customers informed. You must check on your package to see if there’s a problem in transit and fix it immediately. Ensure your shipping partner has a supportive, round-the-clock customer support team to help you deal with issues immediately or in the shortest time. 

Arrival Port and Customs Clearance

When your goods arrive at the port, your trusted freight forwarder will store them safely and prepare them for customs clearance. The shipping personnel will then prepare certain important documents, such as the Shipping Bill, Contract Form, Letter of Credit, Commercial Invoice, and more, to get your shipment through customs.

Keep Your Importer Updated

Finally, you should let your importer know their goods are on the way. Send them a shipment notice with all the necessary details, like the expected arrival date and shipment date. You’ll also send them the necessary documents, including the Bill of Lading, Commercial Invoice, Packing List, and Customs Invoice, to ensure smooth receipt on their end.

Get Paid

As your goods are on their way, you must now go ahead and collect your payment. Here’s what you’ll need to do that:

• A Commercial Invoice (shows the goods sold)
• A Packing List (list with details of contents in each package)
• A Certificate of Origin (proves where the goods are from)
• A Marine Insurance Policy (for shipment protection)
• A Letter of Credit (if applicable)
• A GR Form (to notify customs of the shipment)
• A Bill of Exchange (promise of payment)
• A Bill of Lading (proof of shipment)

After gathering all these documents, submit them to your bank. Your bank will then help you to collect payment from the importer. After completing these steps, you can claim any export incentives that may apply.

Why Choose ShiprocketX for Seamless Global Shipping?

If you’re entering the global market or already dealing with international orders, you may need a logistics partner you can rely on. ShiprocketX manages the entire export process, allowing you to concentrate on growing your business. Here’s how ShiprocketX can help:

• Reliable shipping with a strong network of global partners covering over 220 countries on time.
• Real-Time Tracking Updates to help you monitor all your shipments with real-time tracking updates.
• Cost-effective options with budget-friendly shipping methods that fit your needs.
• ShiprocketX supports you throughout the export process. A dedicated customer service team is available to assist you with any questions or concerns that may arise.

Conclusion

Handling your first export order may seem overwhelming, but by following the above step carefully, you can manage the process smoothly. Understanding how to process your first export order involves simple steps like preparing your products, reviewing each order carefully, and ensuring smooth shipping and documentation. 

However, you may find this challenging and need a reliable and seasoned shipping partner like ShiprocketX. With the right support and attention to detail, you’ll be on your way to expanding your business into international markets.