Who Are the Various Stakeholders in the Export Process?

Did you know that exports involve multiple stakeholders and require coordination across various stages to complete a transaction? Each step involves careful coordination with stakeholders, from generating the purchase order and managing export compliance to arranging trade finance.

The export process starts when the exporter identifies that the goods or services their business produces are in demand internationally and decides to expand internationally. To do that, the exporter must work on three main aspects. The first step is to start the business registration process, the second is to scale the production facilities, and the third is to connect with potential customers.

While we have assigned an order to these steps, they are often executed simultaneously. Here are the various stakeholders involved at each step.

Registration process

For this aspect, the key stakeholders include the following:

Legal and consultancy firms

The first step toward registering as an exporter business is ensuring all the company paperwork is in place. The legal and consultant teams will advise you on the optimal business structure for your company and advise on the required documentation

Taxation professionals

As an export business, your business will need to register for tax reliefs, discounts, and incentives so that you can benefit from them. You will need to consult with a professional to ensure that you can claim the right tax benefits and complete all the documentation required to get the benefit on time.

Standards and certification professionals

When exporting certain goods, obtaining specific clearances and certifications is essential to ensure a smooth process and avoid complications. You will need to provide the necessary certifications and proof of the quality of the goods being exported. Professionals in this field can assist you with acquiring the right certifications, ensuring compliance, and facilitating the import of machinery needed to uphold quality standards

Export promotion council

Another key stakeholder to consider when registering your business for exports is the Export Promotion Council (EPC) relevant to your industry. These councils play a crucial role in supporting exporters by helping identify suitable target markets for your products, providing access to potential customer databases, assisting in marketing efforts, and guiding you on the various benefits and incentives available for exporters. Engaging with your industry-specific EPC can significantly enhance your export strategy and success

Directorate General of Foreign Trade

This is the government body in India that implements policies related to international trade. This stakeholder is essential because it issues the IEC (Import Export Code). The DGFT will also continue to monitor whether your business is in compliance with FTP or the Foreign Trade Policy.

Production Formalities

Key stakeholders during production include:

Legal and consultancy firms

The first step toward registering as an exporter business is ensuring all the company paperwork is in place. The legal and consultant teams will advise you on the optimal business structure for your company and advise on the required documentation

Taxation professionals

As an export business, your business will need to register for tax reliefs, discounts, and incentives so that you can benefit from them. You will need to consult with a professional to ensure that you can claim the right tax benefits and complete all the documentation required to get the benefit on time.

Standards and certification professionals

When exporting certain goods, obtaining specific clearances and certifications is essential to ensure a smooth process and avoid complications. You will need to provide the necessary certifications and proof of the quality of the goods being exported. Professionals in this field can assist you with acquiring the right certifications, ensuring compliance, and facilitating the import of machinery needed to uphold quality standards

Export promotion council

Another key stakeholder to consider when registering your business for exports is the Export Promotion Council (EPC) relevant to your industry. These councils play a crucial role in supporting exporters by helping identify suitable target markets for your products, providing access to potential customer databases, assisting in marketing efforts, and guiding you on the various benefits and incentives available for exporters. Engaging with your industry-specific EPC can significantly enhance your export strategy and success

Directorate General of Foreign Trade

This is the government body in India that implements policies related to international trade. This stakeholder is essential because it issues the IEC (Import Export Code). The DGFT will also continue to monitor whether your business is in compliance with FTP or the Foreign Trade Policy.

Production Formalities

Key stakeholders during production include:

Supply Chain Partners A robust supply chain with reliable credit terms ensures smooth production and high-quality raw materials with necessary certifications.

Transportation and Logistics Providers Efficient logistics ensure that goods are safely transported to exit points, such as ports or airports.

Shipping Agents Shipping agents assist with booking cargo capacity and handling the paperwork required for international shipping.

Custom House Agents (CHAs) Custom House Agents (CHAs) manage customs clearance by ensuring your documentation is complete, expediting the process, and ensuring export compliance with regulations.

Insurance Agents Exporting involves risks such as damage during transit. Insurance agents help protect your goods with tailored coverage.

Banks and Financial Institutions Exporters often require financing to maintain cash flow while offering buyers flexible export payment terms. Banks and financial institutions play a crucial role here.

Customer networking steps

Let’s look at the various stakeholders involved during this process.

Importer’s team

As an exporter, managing your customer’s team effectively is crucial to the success of your business. This team may comprise multiple key stakeholders, such as operations managers, finance heads, and executive decision-makers. After finalizing a deal, it’s essential to maintain clear and consistent communication with these stakeholders to facilitate smooth transactions and ensure timely payments.

Shipping agents

Shipping agents in the customer’s country will help you negotiate the receipt of goods at the importer’s end and ensure that they are further transported to the final destination. This stakeholder will require the proper paperwork and documentation from the exporter to facilitate the process.

Custom authorities

You must engage with the customs authorities in the importer’s country. Compliance with customs regulations in the buyer’s country is essential. This process is often managed in collaboration with the importer’s team.

Regulatory bodies

Compliance requirements differ for different countries, and to negotiate with this aspect, you may need to engage with a local agent or consultant. This stakeholder will help you prepare the documents and meet the regulatory requirements to complete the transaction.

Now that we have looked at all the stakeholders involved in the export process, the next logical step is to seek and leverage an export document management system. At LeRemitt, we are geared to meet exporters’ requirements. Want to know how we help? Click here to get in touch with us!