Tamil Nadu has been a leading state for export from early times and has transitioned itself with modern
requirements. The state’s advanced infrastructure has made it home for various export-oriented
manufacturers. Tamil Nadu is a traditional exporter of Textiles & Garments, Leather Goods, Automobiles &
Components and Electronic Hardware among others.
3rd
Largest Exporting State in India
9.25%
Constitutes of overall India’s Exports
USD 30.5 bn
Overall Export Volume
70%
Contributing to nearly of Export Basket
Export Clusters in Tamil Nadu
Select Clusters
Ariyalur
Chengalpattu
Chennai
Coimbatore
Cuddalore
Dharmapuri
Dindigul
Erode
Kallakurichi
Kancheepuram
Kanyakumari
Karur
Krishnagiri
Madurai
Mayiladuthurai
Nagapattinam
Namakkal
Nilgiris
Perambalur
Pudukottai
Ramanathapuram
Ranipet
Salem
Sivagangai
Tenkasi
Thanjavur
Theni
Thiruvallur
Thiruvarur
Thoothukudi
Tiruchirappalli
Tirunelveli
Tirupattur
Tiruppur
Tiruvannamalai
Vellore
Viluppuram
Virudhunagar
The major exportable items from the
district comprise :
Tamil Nadu in world map
View Tamil Nadu in Google Maps
Class A District*
Class B District*
Class C District*
*Disclaimer: Districts are categorized into three classes based on the sector-wise
incentives
offered to them. To learn about the sector-wise incentives offered to various
district-class,
click here.
How to Export
1
Establishing an Organisation
To start the export business, first a sole Proprietary concern/ Partnership firm/
Company has to be set up as per procedure with an attractive name and logo.
2
Opening a Bank Account
A current account with a Bank authorized to deal in Foreign Exchange should be opened.
3
Obtaining Permanent Account Number (PAN)
It is necessary for every exporter and importer to obtain a PAN from the Income Tax
Department.
4
Obtaining Importer- Exporter Code (IEC) Number
Application for obtaining IEC Number can either be submitted at the Directorate General
of Foreign Trade (DGFT) website (http://dgft.gov.in/) or with the regional authority of
DGFT
5
Registration Cum Membership Certificate (RCMC)
For availing authorization to import/ export or any other benefits under Foreign Trade
Policy (FTP), exporters are required to obtain RCMC granted by the concerned Export
Promotion Councils (EPCs)/ FIEO/Commodity Boards/ Authorities.
6
Selection of Product
All items are freely exportable except a few that appear in the prohibited/ restricted
list. Proper selection of the product(s) to be exported may be made after studying the
export trends.
7
Selection of Markets
An overseas market should be selected after a comprehensive study of market size,
competition, quality requirements, payment terms and export benefits available for a few
countries under the FTP, among others.
8
Finding Buyers
Trade fairs, buyer seller meets, exhibitions, B2B portals are quite effective to find
buyers. A multilingual product catalogue would also help. One may also take advantage of
EPCs, Indian missions abroad, overseas chambers of commerce.
9
Sampling
Provide customized samples as per the demands of foreign buyers to get orders. Exports
of bonafide trade and technical samples of freely exportable items shall be allowed
without any limit.
10
Pricing/Costing
The goal should be to sell maximum quantity at competitive price with maximum profit
margin. Preparing an export costing sheet for every export product taking into
consideration all expenses from sampling to realization of export proceeds on the basis
of terms of sale.
11
Negotiation with Buyers
After determining the buyer’s interest in the product, future prospects and continuity
in business, demand for giving reasonable allowance/discount in price may be considered.
12
Covering Risks through ECGC
Where an overseas buyer is placing order without making advance payment or opening
Letter of Credit (L/c), it is advisable to procure credit limits on the foreign buyer
from Export Credit Guarantee Corporation Ltd (ECGC) to protect against risk of
non-payment.
Incentives provided by Government
Central Government
State Government
Merchandise Exports from India Scheme (MEIS)
Percentage of realised FOB (Free on Board) value (2, 3, or 5%) of the exports are payable
as incentives. The rewards are paid in the form of the MEIS duty credit scrip that can
be used to pay for a number of taxes/duties including excise
Service Exports from India Scheme (SEIS)
Service providers of eligible services shall be entitled to duty credit scrip at
notified rates on the net foreign exchange earned.
Export Promotion Capital Goods (EPCG)
Facilitates import of capital goods for pre- production, production and post-production
at Zero customs duty
Transport and Marketing Assistance (TMA) for Specified Agriculture Products
Assistance for the international component of freight and marketing for export of
specified agriculture products to specified destinations/ countries
Advance Authorization Scheme
Inputs imported are exempted from payment of customs duties ( i.e Basic Customs Duty,
Additional Customs Duty, Antidumping Duty, Countervailing Duty, etc.)
Duty Drawback Scheme
Part of the Customs duty paid at the time of import is remitted on the export of the
imported goods, subject to their identification and adherence to the prescribed
procedure
Interest Equalization Scheme
Rebate of interest provided on pre and post shipment export credit like packing credit.
Banks provide this benefit to the eligible exporters and claim a reimbursement on the
same from RBI based on certification by an external auditor
Trade Fair Financial Assistance
Tamil Nadu Government offers financial assistance to the MSME sector for participation in Trade Fair abroad
International Trade Fare Participation Subsidy
Full subsidy on space rent and shipment of
exhibits of MSEs
MSE Market Development Assistance Scheme
Scheme (funding up to 90%) for airfare expenses for
participation of MSE entrepreneur in overseas trade fair/ trade delegation
Publicity Material Funding
Funding is also available for producing publicity material (up to 25% of the costs)
Others
Sector Specific studies (upto Rs. 2 lakhs) and contesting for anti-dumping cases (50%, up to Rs 1 lakh)
Exports Overview
Filter by:
Years
2020-21
Currency
INR Th.Cr.
USD Mn
0
Export Value
100
Major Ports
217
Country
6226
Commodities
Yearly Export
Top Ports of Export
Top Commodities Exported [2-Digit]
▲
Yearly Export
▲
Top Commodities Exported [2-Digit]
▲
Top Ports of Export
Export FAQs
What Are Major Steps in Converting Your Business Into Export
Business?
Business setup: Open a sole
proprietorship/LLP/company/trust/society in the initial stage with an attractive
name and logo.
Open a current account:After receiving
your business registration and PAN card, you need to open a current bank account
with any commercial bank exclusively for your business.
Get the Import Export Code (IEC):
issued by applying online at the DGFT website.
Obtaining the Registration cum Membership
Certificate (RCMC) granted by the concerned ExportPromotion Councils to get
authorisation to import and export, or for any other benefit.
After getting the IEC and RCMC issued, import
and export business can be set up from India.
How to Identify Potential Import Partners For Key Export Markets?
Information on potential buyers could also be
gauged from sector specific chambers, associations of the key export
market/country
Product-wise (as per HS code classification),
data of companies importing products in a particular country is also available
at ITC Trade Map database,
In addition, domestic and global
business-to-business database is available at Kompass, which is a franchise
network, created in Europe. The website can be accessed at (https://www.kompass.com/selectcountry/) or Click Here
How Are Exports Treated Under The GST Law?
Under the GST Law, export of goods or services
has been treated as:
The export of goods or services is considered
as a zero-rated supply. GST will not be levied on export of any kind of goods or
services.
What Are The Benefits Availed by Exporters in SEZs?
100 per cent FDI is permitted for all
investments in SEZs, except for activities included in the negative list.
SEZ units are required to be positive net
foreign-exchange earners and are not subject to any minimum value addition norms
or export obligations.
Goods flowing into the SEZ area from a domestic
tariff area (DTA) are treated as exports, while goods coming from the SEZ into a
DTA are treated as imports.
No import licence requirements and Exemption
from customs duties on the import of capital goods, raw materials, consumables,
spares, etc
Exemption from Central Sales Tax and Service
Tax.
Deduction of 50% to 100% of export profit for a
period of 15 years applicable for units which commence operation on or before
30th September 2020
What Are The Benefits Availed by Exporters in Export Oriented
Units?
They can procure raw materials and capital
goods through domestic sources or import without paying any duty on the
purchase.
hey can claim reimbursement on GST amounts
they pay
EOUs are allowed to claim an input tax credit
on goods and services
EOUs enjoy priority-basis clearance
facilities
Eligible for Upfront exemption of duties on
procurement of goods and Refund of duties admissible on domestic procurements of
goods.
No exemption on procurement of services
What is The Time Period For Availing The Central Government
Incentives For Exporters?
The Foreign Trade Policy 2015-20 has been
extended up to 31-3-2021, due to COVID-19 pandemic.All export promotion schemes
under the existing Foreign Trade Policy will continue until March 31,2021,
except SEIS. Existing FTP 2015-20 and Hand Book of Procedures (HBP) 2015-20 will
continue up to 31-3-2021.
Useful Links and Documents
Tamil Nadu Export Promotion Strategy 2021
Know More
Tamil Nadu Export Promotion Strategy 2014
Know More
Tamil Nadu MSME Exporters Handbook
Know More
Exporter Guide: Agreement on Perishment Inspection