Export norms in India: licences, documents and the procedure, step by step

Export norms in India are the rules on who may export, what may leave, which papers go with it and when the money must arrive. For most goods they come down to an Importer Exporter Code (IEC) from DGFT, GST registration with a Letter of Undertaking (LUT), and a Registration-cum-Membership Certificate (RCMC) from your Export Promotion Council. Customs then clears each shipment on a shipping bill filed through ICEGATE. One illustrative container of cocopeat, the compressed coir pith this house sells, runs through every step below.

What are export norms in India?

Export norms in India are the rules for sending goods abroad: DGFT's Foreign Trade Policy 2023 and ITC(HS) export policy, customs procedure on ICEGATE, GST rules that zero-rate exports, product rules from boards and regulators, and the RBI's FEMA rules on receiving payment.

Read them as four layers: who you are (the IEC and GST), what you ship (its ITC(HS) policy), who vouches for you (the RCMC) and how it leaves (the shipping bill and the Let Export Order). FEMA then sets the deadline for the money to come home.

The Foreign Trade Policy 2023 has applied since 1 April 2023, and it has no single document called an export licence. Free goods need only the registrations below; restricted goods and SCOMET dual-use items also need a DGFT authorisation.

Step 1: Check your product's export policy

Find your product's eight-digit ITC(HS) code and read its export policy in Schedule 2: that entry decides whether you may export it, and on what terms.

Cocopeat sits at 5305 00 40 in the Indian tariff, which DGFT's Appendix 4R describes as coir pith in briquettes, coins, discs, grow bags and loose form. Its coir lines carry RoDTEP rates, which restricted and prohibited items never get, so free export is the consistent reading; confirm the live entry on dgft.gov.in. Husk chips have no line of their own, so ask customs or seek an advance ruling. The full argument is in how to export cocopeat from India.

Step 2: Get your IEC code from DGFT

Apply on the DGFT portal with a PAN, address proof, a bank account in the applicant's name and a digital signature or Aadhaar e-sign. The code never expires, but it must be updated every year.

1. Gather the papers. DGFT's FAQ lists a PAN, address proof, a bank account in the holder's name, Aadhaar matching the PAN, and a DSC or Aadhaar e-sign.
2. Apply online. Create a profile on dgft.gov.in and file the application; the portal validates the bank account through PFMS.
3. Sign and pay. Sign digitally and pay the fee, which compliance guides in 2026 give as ₹500.
4. Update every year. DGFT Trade Notice 25 (2021-22) requires a free online update between April and June. Advisers note the window shuts on 30 June; after that the code is de-activated, and nothing ships until it is reactivated.

That rule is why "IEC deactivated" is a common search each July. An April reminder costs nothing.

Step 3: GST registration and the LUT

Exports are zero-rated under GST: file a Letter of Undertaking and ship without IGST, or pay IGST and claim it back.

Rate tables for Notification 9/2025-Central Tax (Rate) put coir pith at 5% from 22 September 2025, which matters only on the IGST route. Ask your GST adviser how Rule 96A ties an LUT export to the payment deadline in Step 9.

Step 4: Register with your Export Promotion Council

Your Export Promotion Council or Commodity Board issues the Registration-cum-Membership Certificate (RCMC), which proves you are a registered exporter of your product.

RCMCs have been issued on DGFT's e-RCMC platform since 6 December 2021 (Trade Notice 27/2021-22). You need an active IEC and a DSC or Aadhaar e-sign. DGFT's e-RCMC help file gives five financial years of validity, and fees vary by council.

The official list is Appendix 2T of the Foreign Trade Policy on dgft.gov.in.

Coir is the worked example. The Coir Board's 2017 guidelines require every coir exporter to register, item by item, and list fees of ₹11,800 for registration and ₹9,450 for the RCMC. They do not name coir pith, so confirm the position and current fees with the Board's Pollachi Regional Office or at coirboard.gov.in.

Step 5: Licences and certificates for your product

Some products need their own licence or certificate: food answers to FSSAI, scheduled farm produce to APEDA, and plant material, cocopeat included, to plant quarantine.

PPQS, India's national plant protection organisation, issues phytosanitary certificates through its PQMS portal after inspecting the consignment and testing samples against the importing country's rules. Need depends on the destination: Japan requires one for coco peat, while the EU lists none for pure coir but bans blends. The detail is in cocopeat import rules by country.

Compulsory pre-shipment inspection of coir began in 1965 and was later withdrawn, the Coir Board's 2017 guidelines record; the Board now inspects on request, for a fee. Wooden pallets for the UK must meet ISPM 15.

Step 6: Contract, Incoterms and payment terms

Before anything is packed, sign a contract that fixes the product, price, Incoterms 2020 rule, payment term and documents.

• Specification with its test method: for cocopeat, the EC figure and its method, washed or buffered (see how to read an EC line).
• Incoterm and named place: FOB, CFR and CIF are the sea rules; for containers handed over before loading, the ICC points to FCA, CPT or CIP.
• Payment term: advance, letter of credit, or documents against payment or acceptance. RBI's Master Direction (para C.2) allows shipment against an advance within three years.
• Documents: every certificate the buyer's customs and bank need, named now rather than found missing at the port.

Step 7: Customs clearance, from shipping bill to sailing

Customs clearance runs on ICEGATE: shipping bill, assessment, examination if selected, then the Let Export Order. The carrier's Export General Manifest closes the shipment.

1. Register on ICEGATE. With a Class 3 DSC, register your bank's AD code and account on icegate.gov.in before the first shipping bill. Refunds are paid there.
2. File the shipping bill. Yourself or through a customs broker, with the invoice and packing list.
3. Stuff and seal. Factory stuffing under self-sealing with an RFID e-seal (CBIC Circular 26/2017-Customs), or stuffing at a CFS or ICD under customs supervision.
4. Assessment and examination. Risk-based; goods are examined only if selected.
5. Let Export Order. Issued once customs is satisfied; the container may be loaded.
6. Sailing and the EGM. The carrier's Export General Manifest releases the IGST refund, drawback and RoDTEP.

Self-sealing suits a yard that palletises its own blocks: the container is sealed where it is loaded. The house films every loading, so a buyer sees what the seal vouches for.

Step 8: Documents required for export from India

The core documents are the commercial invoice, packing list, shipping bill, bill of lading and certificate of origin, plus phytosanitary, insurance or quality certificates where needed.

For cocopeat to the UK a preferential certificate saves nothing, since 5305 00 00 00 is 0% anyway. The laboratory certificate counts for more: the house publishes each lot's on its verification page.

Step 9: Getting paid and claiming incentives

Export proceeds must be realised within 9 months of export, under RBI's Master Direction as updated on 17 July 2026; goods sent to an overseas warehouse get 15 months.

The period moved twice in a year: up to 15 months in November 2025 (FEMA 23(R)/(7)/2025-RB), then back to 9 on 5 June 2026 (FEMA 23(R)/(8)/2026-RB). New FEMA regulations replace the 2015 set on 1 October 2026; as notified in January they allow 15 months, but whether the June cut carries over was unconfirmed on 13 September 2026. Check the rule in force on your shipping date with your AD bank or at rbi.org.in.

A rule without a date is a rumour on letterhead.

Banks report each export in RBI's EDPMS. Ask yours how the realisation will reach DGFT as an e-BRC.

Worked example: one cocopeat container, start to finish

Here is one illustrative container traced from registration to payment: twenty-one pallets of 180 five-kilo blocks, about 18.9 tonnes, bound for a UK buyer.

Cocopeat is the pith of coir, the fibre Tamil calls கயிறு, rope. The house is a cocopeat exporter in India working within the Pollachi coir cluster, and its published band for such a container delivered to the UK is £13,500 to £17,000 ex VAT. Times appear only where a rule fixes them.

One figure can be worked out in advance. RoDTEP at the October 2024 rate is capped at ₹1 a kilo, so this container could earn at most about ₹18,900, and only if the scheme is still notified.

Mistakes new exporters make

Six mistakes cost new exporters time or money, and anyone working out how to start an export business in India can avoid each with a calendar.

• A lapsed IEC. Miss the April to June update and nothing ships.
• The old payment deadline. It has been 9 months, not 15, since 5 June 2026.
• A guessed HS code. Guides contradict each other; cocopeat is 5305 00 40 in the Indian tariff.
• No AD code on ICEGATE. Refunds are paid only into the registered account.
• One plant-health rule for every market. Japan wants a certificate for coco peat; the EU wants none for pure coir.
• An EC figure without its method. The buyer's laboratory cannot match it.

Buyers watch for the same slips; how buyers vet cocopeat exporters in India lists what they check.

Export norms in India: your questions answered

Does IEC code expire?

No. An IEC has no expiry date, but DGFT Trade Notice 25 (2021-22) requires a free online update every year between April and June. A code left un-updated is de-activated automatically and cannot be used to ship until it is reactivated, so an April reminder is the simplest protection an exporter has.

Is IEC code mandatory for export?

Yes, for anyone exporting goods commercially from India. DGFT issues it, the shipping bill quotes it, and an RCMC needs an active one. The Foreign Trade Policy lists a few narrow exemptions; if you think one applies, check the current list on dgft.gov.in before relying on it.

What documents are required for export from India?

A commercial invoice, packing list, shipping bill filed on ICEGATE, bill of lading and certificate of origin from DGFT's eCoO 2.0 platform. Add a phytosanitary certificate for plant products where the destination requires one, marine insurance for CIF sales, and any quality certificate the contract names.

How much does an export license cost in India?

Most goods need no single export licence. The IEC costs ₹500 with a free yearly update, and council fees vary: the Coir Board's 2017 guidelines list ₹11,800 for registration and ₹9,450 for the RCMC. Restricted and SCOMET goods need a DGFT authorisation, and product licences such as FSSAI's carry their own fees.

What is the use of RCMC certificate?

An RCMC shows that an Export Promotion Council or Commodity Board has registered you as an exporter of your product. Under the Foreign Trade Policy, DGFT asks for it when you apply for an authorisation or claim a policy benefit. It runs for five financial years and, for coir, comes from the Coir Board.

Who issues phytosanitary certificate in India?

The Directorate of Plant Protection, Quarantine and Storage (PPQS). Exporters apply on its PQMS portal; officers inspect the consignment and packing, test samples against the importing country's rules and issue the certificate in the ISPM 12 format. Need depends on the destination: Japan requires one for coco peat, while the EU lists none for pure coir.

Can we start export business in India from home?

Yes, for most goods. The IEC asks for a PAN, address proof and a bank account, not a factory, and a merchant exporter can buy finished goods and export them under its own IEC. The goods still need a place to be stuffed and sealed: a factory approved for self-sealing, or a CFS or ICD.

Papers first, then the container: that is the whole of the norm. For cocopeat, the next paper is how to export cocopeat from India, which takes the Coir Board, plant health and loading to the last document, and buyers will want cocopeat import rules by country. For anyone who would rather receive a pallet than ship one, the house sells by the pallet to UK buyers at £749 to £899 ex VAT delivered kerbside; the pallet register and the sample kit are where that begins.