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Business in Tamil Nadu

Tamil Nadu Exports

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.

3^rd

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

The major exportable items from the district comprise :

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

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.

Opening a Bank Account

A current account with a Bank authorized to deal in Foreign Exchange should be opened.

Obtaining Permanent Account Number (PAN)

It is necessary for every exporter and importer to obtain a PAN from the Income Tax Department.

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

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.

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.

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.

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.

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.

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.

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.

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

Exports Overview

Filter by:

Export Value

100

Major Ports

217

Country

6226

Commodities

Yearly Export

Top Ports of Export

Top Commodities Exported [2-Digit]

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Yearly Export

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Top Commodities Exported [2-Digit]

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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.
To know more in pictorial form: Click Here

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

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Tamil Nadu Export Promotion Strategy 2014

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Tamil Nadu MSME Exporters Handbook

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Exporter Guide: Agreement on Perishment Inspection

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Exporter Guide: Importer Partner Links

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Exporter Guide: SPS Agreement

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Exporter Guide: WTO TBT

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Guidance Event List

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MTIPB Exporters Event List

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APEDA Agri Exchange

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Reach our Export Expert

Sri Ramya Y

sriramya@investtn.in