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How to Export to USA from India – Step by Step Guide for Businesses

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Financial Analyst

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Learn how to export to the USA from India with this step by step guide. Covers IEC registration, HS code, FDA compliance, shipping, customs clearance, payment methods, and export benefits.

How to Export to USA from India: Step-by-Step Guide

The United States is one of the largest and most stable export markets for Indian businesses. India exports a wide range of products to the USA, including textiles, handicrafts, engineering goods, pharmaceuticals, food products, software services, and lifestyle goods.

While the USA offers excellent business opportunities, exporting requires strict compliance, accurate documentation, and adherence to US regulatory standards. This step-by-step guide explains how Indian businesses can successfully export goods and services to the USA.

Step 1: Register Your Business for Export

To export from India to the USA, your business must be legally registered.

Required registrations:

  • Valid business entity (Proprietorship, Partnership, LLP, or Private Limited)
  • PAN
  • Current account
  • Import Export Code (IEC) from DGFT
  • GST registration (exports are zero-rated)

IEC is mandatory for exporting goods from India.

Step 2: Choose the Right Product for the US Market

Popular Indian exports to the USA include:

  • Apparel and textiles
  • Handicrafts and home décor
  • Spices and processed food
  • Pharmaceuticals and APIs
  • Engineering and auto components
  • IT and digital services

Before exporting:

  • Confirm the product is not restricted or prohibited
  • Study US demand, quality standards, and pricing expectations
  • Check if additional US-specific compliance applies to your product

Step 3: Identify the Correct HS Code

The HS Code determines:

  • US customs classification
  • Import duty rate
  • Regulatory approvals required

Incorrect HS codes can result in heavy penalties, shipment delays, or rejection at US ports.

Step 4: Understand US Import Regulations

The USA has strict product-specific regulations.

Common US authorities involved:

  • US Customs and Border Protection (CBP)
  • FDA – food, cosmetics, drugs, dietary supplements
  • USDA – agricultural and plant products
  • FCC – electronics and wireless devices
  • CPSC – consumer products

Many products require:

  • Pre-registration
  • Compliance certificates
  • US-specific labeling and packaging

Step 5: Find and Verify a US Buyer

Buyers can be found through:

  • Trade fairs and exhibitions
  • B2B marketplaces
  • Direct online inquiries
  • Distributor or importer partnerships

Before accepting orders:

  • Verify buyer credentials
  • Sign a clear sales contract or purchase order
  • Define pricing, quantities, delivery schedule, and liability terms

Step 6: Decide Incoterms and Pricing

Select suitable Incoterms, commonly:

  • FOB (Free on Board)
  • CIF (Cost, Insurance, Freight)
  • DAP or DDP (advanced exporters)

Most US buyers prefer DAP or DDP for hassle-free delivery, while new exporters usually start with FOB or CIF.

Step 7: Arrange Shipping and Logistics

Shipping options:

  • Sea freight – cost-effective for bulk shipments
  • Air freight – faster for high-value goods
  • Courier mode – samples or small parcels

Export documents required:

  • Commercial Invoice
  • Packing List
  • Shipping Bill
  • Certificate of Origin
  • Bill of Lading / Air Waybill
  • Insurance certificate (if applicable)

Step 8: Indian Customs Clearance

Exports are filed online through ICEGATE.

Ensure:

  • Correct HS code and value declaration
  • Accurate documentation
  • Compliance with DGFT and customs rules

After clearance, the shipment is handed over for international transit.

Step 9: US Customs Clearance

The US importer or customs broker handles:

  • Entry filing with CBP
  • Duty and tax payment
  • Regulatory clearances
  • Examination or inspection if required

Non-compliance with FDA, FCC, or labeling rules can result in shipment detention or rejection.

Step 10: Receive Export Payment

Common payment methods for USA exports:

  • Advance payment
  • Letter of Credit (LC)
  • Wire transfer (TT)
  • PayPal or Stripe for small shipments

Indian exporters must:

  • Realize export proceeds within FEMA timelines
  • Obtain eBRC or FIRC
  • Maintain proper banking and GST records

Step 11: Claim Export Benefits in India

Exporters to the USA may claim:

  • Zero-rated GST benefits (LUT or refund)
  • RoDTEP incentives (if applicable)
  • Duty Drawback (for eligible products)

Proper documentation and timely filings are essential to claim benefits.

Common Mistakes to Avoid When Exporting to USA

  • Incorrect HS code classification
  • Non-compliant FDA or FCC requirements
  • Improper labeling or packaging
  • Weak buyer verification
  • Incomplete documentation
  • Delayed export payment realization

Conclusion

Exporting from India to the USA can be highly profitable when done correctly. Success depends on product compliance, accurate documentation, reliable logistics, and strong buyer agreements.

By following this step-by-step guide, Indian exporters can reduce risks, avoid customs delays, and build a sustainable export business with the US market.

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