How To Export From India To USA? A 2024 Updated Guide

Embarking on the step-by-step journey of how to export from India to the USA opens up a world of opportunities for businesses seeking to expand their market reach. Navigating the intricacies of global trade can feel overwhelming without the right support and direction.

In this comprehensive guide, we’ll explore the step-by-step process of exporting from India to the USA, shedding light on essential documentation, regulations, and logistics involved.

Additionally, we’ll highlight the invaluable support provided by Artemus Transportation Solutions, a leading provider of ISF (Importer Security Filing) and AMS (Automated Manifest System) software solutions tailored for compliance in this transcontinental trade route.

Importance Of Trade Between India And The USA

The trade relationship between India and the USA holds significant importance on both economic and geopolitical fronts. Economically, bilateral trade serves as a crucial engine for growth, fostering job creation and bolstering industries in both nations. India’s burgeoning market offers immense opportunities for American exporters, while Indian consumers benefit from access to high-quality American goods and services. 

Moreover, trade between the two countries encourages innovation and technological exchange, driving competitiveness and productivity enhancements in various sectors.

Beyond economic benefits, the trade ties between India and the USA play a vital role in strengthening diplomatic relations and fostering mutual understanding. As two of the world’s largest democracies, their partnership promotes shared values of democracy, the rule of law, and respect for human rights. 

Furthermore, robust trade relations serve as a stabilizing force in the Indo-Pacific region, contributing to regional security and prosperity. By deepening economic engagement, both countries can collaborate more effectively on global challenges, such as climate change, terrorism, and public health crises, reinforcing their strategic partnership on the world stage.

Related: What Is Bill Of Lading? A Comprehensive Overview

Top Trends In Exporting From India To USA

The economic ties between India and the USA have been growing stronger, with India emerging as a significant exporter to the world’s largest consumer market. Let’s unpack the top trends driving this trade relationship:

1. The Allure Of The USA’s Vast Consumer Market

• The USA stands tall as the world’s largest consumer market, offering a diverse and dynamic landscape for global exporters. 
• his vast market is characterized by its high purchasing power, varied consumer preferences, and a culture that embraces global products.
• For Indian exporters, the USA represents a golden opportunity to tap into this lucrative market and cater to the diverse needs of American consumers.

2. India’s Growing Export Footprint

• India’s export prowess is evident in its substantial contribution to the US market. A striking 17.69% of India’s total exports are directed towards the USA, amounting to an impressive $905 billion in trade.
• This substantial volume underscores the importance of the USA as a key destination for Indian products, spanning across sectors such as textiles, pharmaceuticals, IT services, and more.

3. E-commerce: The Digital Gateway To North America

• The digital revolution has transformed the way business is conducted globally, and the USA is at the forefront of this e-commerce wave. 
• As North America gears up for an expected surge in e-commerce sales in 2024, Indian exporters are leveraging this digital platform to expand their reach and connect directly with American consumers. 
• Online marketplaces, direct-to-consumer platforms, and digital marketing strategies are becoming increasingly pivotal in driving India’s exports to the USA, offering a seamless and efficient channel for trade.

Related: What Is Freight Forwarder Vs Broker: 6 Key Differences

How To Export From India To USA? India-Governed Process

Exporting goods from India to the USA can be a lucrative endeavor, but it requires careful planning and adherence to regulations. Whether you’re a seasoned exporter or just starting, understanding the process is crucial. In this guide, we’ll walk you through the India-governed process of exporting from India to the USA in easy-to-follow steps:

1. Market Research & Product Selection

Begin by conducting thorough market research to identify demand trends and potential opportunities in the US market. Select products that have a market demand in the USA and are allowed for export from India.

2. Obtain An Import Export Code (IEC)

The Import Export Code (IEC) is a mandatory prerequisite for exporting goods from India. Apply for an IEC online through the DGFT (Directorate General of Foreign Trade).

3. Register With Export Promotion Councils

Depending on your product category, registering with relevant Export Promotion Councils can provide various benefits such as market insights, networking opportunities, and access to export incentives.

4. Understand Export Documentation Requirements

Familiarise yourself with the required export documentation including commercial invoice, packing list, certificate of origin, bill of lading/airway bill, and any other specific documents required for your product category.

5. Compliance With Legal & Regulatory Requirements

Ensure compliance with Indian and US export laws and regulations including export licensing, customs duties, and tariffs. Familiarise yourself with trade agreements and preferential tariffs applicable to your products.

6. Customs Clearance & Documentation

Prepare all necessary customs documentation accurately and thoroughly. This includes filing shipping bills through the ICEGATE (Indian Customs Electronic Gateway) portal and obtaining necessary certificates or permits.

7. Packaging & Labelling

Ensure that your products are appropriately packaged and labeled according to US regulatory standards. This may include compliance with labeling requirements such as FDA (Food and Drug Administration) regulations for food, drugs, and cosmetics.

8. Arrange Shipping & Logistics

Choose a reliable freight forwarder or shipping company to handle the transportation of your goods from India to the USA. Coordinate with them to ensure smooth logistics operations.

9. Insurance Coverage

Consider obtaining appropriate insurance coverage for your goods during transit to protect against loss or damage.

10. Payment & Financing

Determine the payment terms with your US-based buyers and arrange for any necessary financing or payment guarantees. Consider using secure payment methods such as letters of credit to mitigate payment risks.

11. Export Declaration & Filing

File the required export declaration forms with the Indian customs authorities through the ICEGATE portal.

12. Post-Export Documentation & Compliance

Complete any post-export documentation requirements such as submitting proof of export and complying with any post-export obligations or regulations.

Related: What Is HS Code In Shipping? The Harmonised System

How To Export From India To USA? USA-Governed Process

Exporting from India to the USA involves several steps governed by regulations and procedures set by both countries. Here’s a concise guide in 8 points:

1. Market Research & Product Selection

Conduct thorough market research to identify products in demand in the USA. Consider factors like competition, regulations, and consumer preferences.

2. Obtain Import-Export Code (IEC)

Acquire an Import-Export Code from the Directorate General of Foreign Trade (DGFT) in India. This code is mandatory for all import/export transactions.

3. Understand Tariffs & Customs Duties

Familiarise yourself with the tariffs and customs duties applicable to your product in the USA. The United States International Trade Commission (USITC) or U.S. Customs and Border Protection (CBP) can provide this information.

4. Compliance With Regulations

Ensure your product complies with US regulations, standards, and labeling requirements. This may include FDA regulations for food, drugs, and medical devices, as well as FCC regulations for electronics.

5. Arrange Shipping & Logistics

Choose a reliable freight forwarder or shipping company to transport your goods to the USA. Coordinate shipping details, including mode of transportation, packaging, and delivery terms (FOB, CIF, etc.).

6. Documentation & Paperwork

Prepare necessary export documentation such as commercial invoice, packing list, bill of lading/airway bill, and certificate of origin. Some products may require additional certificates like phytosanitary certificates or sanitary certificates.

7. Customs Clearance In The USA

Submit required documentation to US Customs and Border Protection (CBP) through the Automated Commercial Environment (ACE) system or your customs broker. Pay applicable duties and taxes. Let Artemus help you!

8. Distribution & Marketing

Once customs clearance is completed, your goods can be distributed to buyers in the USA. Develop marketing strategies to promote your products, establish partnerships, and expand your presence in the US market.

Related: 10 International Shipping Documents To Must Have In 2024 

Top Products In Demand To Export From India To USA

As the trade relationship between India and the USA flourishes, a diverse array of products has found its way from Indian shores to American homes and industries. From exquisite diamonds and artisanal handicrafts to flavorful spices and innovative pharmaceuticals, let’s explore the high-demand products that are shaping this vibrant trade partnership.

1. Diamonds & Jewelry

• Quality Craftsmanship: India is renowned for its skilled artisans and craftsmen who produce intricately designed diamond and gold jewelry that caters to the American market’s taste for elegance and luxury.
• Competitive Pricing: With competitive pricing structures, Indian jewelers offer high-quality diamonds and jewelry at attractive price points, making them popular among American consumers.

2. Textiles

• Rich Heritage: India’s textile industry is steeped in tradition, producing a diverse range of fabrics, including cotton, silk, and handloom textiles, that appeal to the American market’s appreciation for quality and authenticity.
• Fashion Trends: Indian textiles often incorporate vibrant colors, intricate patterns, and unique designs that align with global fashion trends, making them sought-after in the USA.

3. Leather Products

• Quality Leather: India is a leading producer of high-quality leather products, including footwear, bags, and accessories, catering to the American market’s demand for durable and stylish leather goods.
• Ethical Practices: Many Indian leather manufacturers adhere to ethical and sustainable practices, resonating with American consumers’ increasing focus on sustainability and ethical consumption.

4. Handicrafts

• Artisanal Excellence: Indian handicrafts, ranging from pottery and ceramics to woodwork and metal crafts, showcase the country’s rich cultural heritage and artisanal skills, appealing to the American market’s interest in unique and handmade products.
• Cultural Appeal: The diversity and intricacy of Indian handicrafts offer a glimpse into the country’s vibrant culture and traditions, making them popular choices for home decor and gifting.

5. Food

• Culinary Delights: Indian cuisine, with its diverse flavors, spices, and aromas, has captured the taste buds of American consumers, leading to a growing demand for Indian food products, including spices, ready-to-eat meals, and snacks.
• Health & Wellness: The increasing popularity of Indian superfoods, such as turmeric, ghee, and lentils, is driven by their perceived health benefits and alignment with the growing wellness trend in the USA.

6. Organic Chemicals

• High-Quality Production: India’s chemical industry is known for its high-quality production of organic chemicals, catering to various industrial applications in the USA, including pharmaceuticals, agriculture, and manufacturing.
• Innovation & Research: Indian chemical manufacturers are investing in research and development to produce innovative and eco-friendly organic chemicals, aligning with global sustainability and regulatory standards.

7. Packaged Medicaments

• Pharmaceutical Excellence: India is a global hub for pharmaceutical manufacturing, producing a wide range of generic and branded medicaments that meet the stringent quality and safety standards of the American market.
• Affordability & Accessibility: Indian pharmaceutical products are known for their affordability and accessibility, making them essential contributors to healthcare solutions in the USA.

8. Mineral Fuels, Oils, & Distillation Products

• Energy Resources: India exports a variety of mineral fuels, oils, and distillation products to the USA, contributing to the country’s energy needs and industrial processes.
• Quality & Compliance: Indian exporters adhere to international quality standards and compliance regulations, ensuring the safe and efficient use of these energy resources in the American market.

Related: 10 International Shipping Documents To Must Have In 2024 

Documents Required To Export From India To USA?

Exporting from India to the USA requires specific documentation to comply with regulations. Here’s a concise guide in 8 points:

1. Import-Export Code (IEC)

The Import-Export Code (IEC) is a unique 10-digit number issued by the Directorate General of Foreign Trade (DGFT) in India. It is mandatory for all import/export transactions and serves as a key identification for customs authorities.

2. Commercial Invoice

A commercial invoice is a legal document issued by the exporter to the importer, detailing the transaction between both parties. It includes essential information such as the description of the goods, quantity, unit price, total value, currency, terms of sale (Incoterms), and any applicable taxes or discounts.

3. Packing List

A packing list provides a detailed inventory of the contents of each package being shipped. It includes information such as the item name, description, quantity, weight, dimensions, and packaging type (cartons, pallets, etc.). This document assists customs officials in verifying the shipment and facilitates the unloading and distribution process.

4. Certificate Of Origin

A Certificate of Origin is a document certifying the country of origin of the exported goods. It may be required to benefit from preferential tariff rates under trade agreements or to comply with import regulations in the destination country. This certificate can be issued by a Chamber of Commerce or authorized government agency.

5. Bill Of Lading Or Airway Bill

The Bill of Lading (for sea shipments) or Airway Bill (for air shipments) is a crucial shipping document issued by the carrier or freight forwarder. It serves as a contract of carriage and provides details about the shipment, including the shipper, consignee, description of goods, quantity, weight, and destination. It also acts as a receipt of goods and can be used for obtaining payment.

6. Customs Declaration

Exporters must accurately complete customs declaration forms, providing information about the exported goods, their value, quantity, classification (HS Code), and other relevant details. This information helps customs authorities assess applicable duties, taxes, and regulatory compliance.

7. Insurance Certificate

An insurance certificate confirms that the exported goods are covered by an insurance policy during transit. It provides details about the insurance coverage, including the insured value, risks covered, duration of coverage, and contact information of the insurance provider. Having insurance coverage protects the exporter against potential losses or damages during transportation.

8. Additional Certifications

Depending on the nature of the goods being exported, additional certifications or documents may be required.

For example, agricultural products may need phytosanitary certificates to ensure they meet plant health standards, while certain food items may require sanitary certificates to demonstrate compliance with health and safety regulations.

It’s essential to research and obtain any necessary certifications specific to the exported goods and the destination country’s requirements.

Related: Certificate Of Conformance (CoC): What Is It & Its Types

Export Charges From India To USA

Export charges from India to the United States are influenced by the destination port and the selected shipping partner.

These charges encompass customs duties, transportation fees, and handling costs, contributing to the overall export expenses. It’s crucial for exporters to collaborate with reputable shipping partners and obtain detailed quotes to accurately estimate these charges.

Understanding the specific requirements at the destination port can also help mitigate potential additional costs and ensure a seamless export process.

Related: ISF Form (Import Security Filling): Elements & Top Practices

Artemus: ISF & AMS Software Solutions For Compliance From India To USA

Artemus Transportation Solutions offers comprehensive ISF (Importer Security Filing) and AMS (Automated Manifest System) solutions to facilitate seamless compliance for businesses exporting from India to the USA. With a deep understanding of international trade regulations and a commitment to innovation, Artemus empowers exporters to navigate the intricate customs requirements efficiently and effectively.

Their ISF solution enables exporters to submit accurate and timely filings, ensuring compliance with U.S. Customs and Border Protection (CBP) regulations. By automating the filing process and providing real-time updates, Artemus helps businesses avoid penalties and delays, enhancing supply chain efficiency.

Additionally, Artemus’ AMS software streamlines the manifesting process, enabling exporters to transmit electronic cargo manifests to CBP before goods depart from India. This ensures compliance with advance cargo information requirements and facilitates smooth cargo clearance upon arrival in the USA.

Related: How To Choose A Freight Forwarder? 10 Critical Aspects

FAQs

1. Do I Need A License To Export From India?

Yes, you need an Import-Export Code (IEC) to export from India.

2. How Do I Find Customers For Export?

Utilize online marketplaces, trade directories, and networking to find export customers.

3. How Can I Export Goods From India To USA?

To export goods from India to the US, obtain an Import-Export Code, comply with regulations, arrange shipping, and complete customs documentation.

Conclusion

In conclusion, navigating the process of exporting from India to the USA requires careful planning, attention to detail, and adherence to regulatory requirements. By following the steps outlined in this guide and leveraging available resources such as government agencies, trade associations, and international trade consultants, exporters can successfully navigate the complexities of international trade.

Related: OTI License Requirements, Costs, Renewal, & Regulations