In the world of export-import, each shipment counts. And you cannot afford to make any “uninformed investment”. So, if you have any doubt or a question, ask us. Our team of experts at The Dollar Business Intelligence Unit will be happy to answer your queries. Your question(s), if approved, will also be published on www.thedollarbusiness.com, and/or in forthcoming issue of 

The Dollar Business

I want to export charcoal. What is its HS Code and what are the countries that buy acacia wood charcoal? (Rajesh, Rajesh Enterprise, Ahmedabad, Gujarat, +91-9586091XXX, [email protected])

Dear Rajesh: We assume you are interested in exporting wood charcoal falling under HS Code: 44029090. Industry data reveals that India is not a big exporter of wood charcoal falling under the said HS Code. In fact, India ranks 26th in the world when it comes to exports of wood charcoal and accounts for just 0.81% share in global exports of the product. India’s only significant export destination for the product falling under the said HS Code is Bhutan (the country accounts for about 96% of India’s total exports of the product), though the country is also exporting the product to Netherlands, Czech Republic and Sri Lanka in small quantities. Further, sadly, India’s exports under the HS Code: 44029090 has only been falling over the last few years.

More of such pure, researched data is available to members of The Dollar Business GROW Programme. (You can read more on TDB Membership Programme on https://in.thedollarbusiness.com/memberships). Besides detailed product/product group reports, TDB GROW Programme members get access to unique advanced intelligence features like Heat Map, Opportunity Index, Competition Index, Pricing Index, Export Incentive Calculations, estimated freight rates, trade fairs related to your product/product group, World Consumption Pattern, SWOT Analysis, names of recommended ports, etc. – all such compilation of researched facts that make for a tailor-made solution for an inspired and determined entrepreneur like you. In case our assumptions about intended export products isn’t exact, please write to us. The Dollar Business Intelligence Unit would like to hear from you.

Response by: Steven Philip Warner, President (VMPL) & Editor-in-Chief, The Dollar Business

I would like to start a merchant exports firm in Mumbai. How much of capital investment would I require to start one? (Shãdäb, Mumbai, +91-8286963XXX, [email protected])

Dear Shãdäb: We are happy to hear of your decision to head into the world of foreign trade. Well, to start an export-import business, first you need to obtain an Importer-Exporter Code (IEC) from the DGFT. An IEC is a 10-digit number allotted to a person that is mandatory for undertaking any export/import activities. Application for obtaining IEC can be filed online on the DGFT website. DGFT only accepts online applications for IEC issuance or modification and requires only three documents: (i) PAN; (ii) Cancelled cheque bearing entity’s pre-printed name or Bank Certificate; and (iii) Digital Photograph (3X3 cm). All you need to ensure is that details filled in the application should match with details in the uploaded documents. Having said that, an online application for IEC, however, can only be made using Digital Signature Certificate (DSC; Class II type). You can type the following URL in your browser – www.thedollarbusiness.com/memberships and subscribe to TDB GROW Programme that gives you a Dedicated Account Manager who ensures that your applications for both Digital Certificates and Importer-Exporter Code (IEC) is hassle-free.

Interestingly, cost incurred towards obtaining IEC and DSE is the only investment you need to make to start a merchant exports firm. You can work with supplier’s credit, and sell to your buyer for cash up front or at pick up. And then you can pay your supplier. We would like to point out though, no manufacturer/supplier would sell goods to a new buyer on credit. If the supplier is ready to sell goods to you on credit, you can play with the float i.e. the credit cycle. If not, the initial capital investment and working capital requirements will depend on the product you choose to deal in and the place where you would want to operate from. Hence, we would request greater details of the product and the point of supply for us to advice you better. The Dollar Business Intelligence Unit would like to hear from you. Your question means a lot to us.

Response by: Manish K. Pandey, Editor, The Dollar Business

I am a resident of Andhra Pradesh. I would like to invest in agricultural lands in Australia, and cultivate and sell cereals in Australia. Can you explain the process? (Surekha, Andhra Pradesh, +91-9963724XXX, [email protected])

Dear Surekha: Proposed investments in agricultural land in Australia generally require approval where the cumulative value of a foreign person’s agricultural land holdings exceeds $15 million (with exceptions applying to investors from Australia’s trade agreement partners). Having said that, all acquisitions of interests in agricultural land by foreign persons, regardless of whether they require approval and regardless of value, must be notified to the Australian Taxation Office Register of Foreign Ownership. Australian government’s Foreign Investment Review Board, has a ‘Guidance Note’ for foreign investors proposing to invest in Australian agricultural land. You can type the following URL in your browser: https://firb.gov.au/resources/guidance/gn17 and go through the document to have a detailed understanding of what you need to do to own agricultural land in Australia. In case you have further queries, we would like to hear from you.

Response by: Indranil Das Executive Editor, The Dollar Business

I have been into pharmaceuticals retail business for the past 30 years. Going forward, I want to participate in government tenders by importing or procuring medicines or salts from various international sources. How do I do it? Also, I want to start an export-import arm. How do I proceed? (Ayush, Director, Bahubali Enterprises, +919660418XXX, [email protected])

Dear Ayush: If you want to start an export-import business, the first thing you need to obtain is an Importer-Exporter Code (IEC) from the DGFT. An IEC is a 10-digit number allotted to a person that is mandatory for undertaking any export/import activities. DGFT only accepts online applications for IEC issuance or modification and requires only three documents: (i) PAN; (ii) Cancelled cheque bearing entity’s pre-printed name or Bank Certificate; and (iii) Digital Photograph (3X3 cm). All you need to ensure is that details filled in the application should match with details in the uploaded documents. Having said that, an online application for IEC however, can only be made using Digital Signature Certificate (DSC; Class II type). You can type the following URL in your browser – www.thedollarbusiness.com/memberships and subscribe to TDB Grow Programme that gives you a Dedicated Account Manager who ensures that your applications for both Digital Certificates and Importer-Exporter Code (IEC) is hassle-free.
You can also approach your concerned EPCs – Pharmaceutical Export Promotion Council of India (Pharmexcil) and Chemical and Allied Export Promotion Council of India (CAPEXIL) – to understand if there are any specific requirements with respect to the products or chemicals you want to deal in.

When it comes to participating in government tenders, your participation would depend on the eligibility criterion mandated by government agencies floating the tender. Hence, the requirements will vary with product and the tender type.
Additionally, since you desire to venture into the world of foreign trade, we would also suggest you to take The Dollar Business Export Potential Test to evaluate how ready you are to take the plunge into a world of business that’s wide and exciting! You can find the test on https://in.thedollarbusiness.com. Of course, the test is completely free! In case you have further queries, do write back to us.

Response by: Dr. A. K. Sengupta, Chief Consulting Editor, The Dollar Business