Exporting yarn or fabric from India follows the same basic route for every product. This guide lists the main registrations and documents. Rules and procedures change, so confirm the current requirements with your CA, freight forwarder or customs broker.
Registrations you need first
- Importer Exporter Code (IEC). Issued by the DGFT and needed to export.
- GST registration. Exports can be made under a Letter of Undertaking without paying tax, or with tax paid and a refund claimed.
- Bank AD code. Your bank account is registered with customs so export payments can be tracked.
- Export council membership. Cotton textile exporters often join the relevant export promotion council to claim benefits.
Documents for each shipment
- Commercial invoice. Shows the buyer, goods, value, HSN code and terms of sale.
- Packing list. Cartons, weights and marks for each lot.
- Shipping bill. Filed with customs to clear the goods for export.
- Bill of lading or airway bill. Issued by the carrier as proof of shipment.
- Certificate of origin. Needed by some buyers or for duty benefits under trade agreements.
Payment terms
Common options are advance payment, a letter of credit, or documents against payment or acceptance. Each shifts risk between buyer and seller differently. After the shipment, keep proof of the payment received for your records. Our HSN code guide helps with the invoice, and our export page explains how we support overseas buyers.
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