India is among the leading toy producer and exporters globally. BIS serves as a prime regulator of toy manufacturing and quality in India. Despite its rampant popularity, the BIS is yet to achieve international recognition. BIS-certified toys are not exportable in countries like the United States, the UK, and others nations. These countries have different standards to measure the quality of importable toys. Indian exporters need to abide by these standards before shipping their products abroad. Here’s how you can export toys from India.
Is BIS Certification Enough To Ensure The Quality Of Exportable Goods?
No, almost every country has its own directives/standards concerning toy manufacturing and import. Therefore, exporters in India must meet these standards without exception. However, BIS certification can serve as an additional certificate for product quality, helping exporters to gain more trust.
The exportation of goods in India is not that complicated or time-consuming as long as you adhere to the FTP’s norms. The real effort lies in complying with the quality standards of the country where you wish to dispatch your shipment. Below is the list of nations that follow different standards that every exporter must follow to export toys from India.
|Nation||Standards, certificate scheme to be followed by exporters worldwide|
|Kenya||PVoC program, BS 1363 (Electrical toys)|
|Kuwait||Kuwait Conformity Assurance Scheme, BS 1363 (Electrical toys)|
|Nigeria||Standards Organisation of Nigeria (SON), SONCAP Certificate, BS 1363 or BS 546 (Electrical toys)|
|Saudi Arabia||Certificate of Conformity MOCI Decree 6386 for custom clearance, SASO 1063|
|European Nations||The Toy Safety Directive 2009/48/EC|
|United Kingdom||Toy safety standard EN71|
|United States||Consumer Product Safety Improvement Act (CCPSA)|
Each directive above requires exporters to meet all the requirements before dispatching the shipment. The quality parameters should be in line with these directives. In most cases, the BIS certificate acts as additional evidence for product quality. Therefore, checking and complying with the local standards isn’t a bad idea.
Documents Required To Export Toys from India
The followings are the documents that are primarily used in the export business. If you are an exporter, you must have these documents in place without fail.
Pro Forma Invoice- This document encloses information about exportable goods such as quantity, price, type, weight, and so on.
Commercial Invoice- The commercial invoice serves as a legal dossier that reflects information about items being sold and the price to be paid by the importer.
Packing List– The packing list reflects an array of crucial information such as invoice number, importer’s details, shipment weight, packaging markings, measurements, and so on. It helps with customs clearance.
Air Waybill– An air waybill refers to legal documents that go along with the goods carried by the air carrier. It helps with shipment tracking and encloses complete information.
Import Export Code- Import Export Code is a ten-digit unique code assigned to an individual exporter or importer. Directorate General of Foreign trade grants this license against the prescribed application and documents, including PAN, current bank account number, and so on.
How to Export Toys from India? – Step-by-Step Process
Following is the detailed procedure that will let you export toys from India in a legal manner:
Step 1: Find the Importer and Secure the Purchase Order
Customer identification is one of the fundamental steps in exporting business. You can use an array of sources, including third-party agencies, to explore potential customers outside India. Once done, contact the prospect and ask them for a sample inspection.
Step 2: Secure the Purchase Order
The Indian exporter will avail purchase order from the importer after sample approval.
Step 3: Obtaining License and Quota
Upon receiving the order, the exporter must visit the Directorate General of Foreign Trade to secure the Import-export code. It is a fundamental legal document for those who wish to involve with import export business.
Step 4: Letter of Credit
In this step, the exporter prompts the importer to facilitate the letter of credit that avert any possibility of a payment default. It is a legal contract between the beneficiary and the importer’s bank that provides payment protection for exporters after the fulfilment of underlying conditions.
Step 5: Fixing the Exchange Rate
Exporter must get in touch with the importer to mutually agree on an exchange rate. Not doing so can create a conflict between the parties.
Step 5: Foreign Exchange Formalities
In light of the Foreign Exchange Regulation Act of India (FERA), the exporter must file a declaration with authority concerned about the exports of toys from India.
Step 7: Hire Forwarding Agent
In this step, the exporter must hire a forwarding agent who will perform the following tasks;
- Securing a permit from the custom
- Preparing the shipping bill
- Paying dues after devolving details about the exported goods.
Step 8: Bill of Lading
The exporter requires to share the receipt copy of the shipping company and facilitates the Bill of Lading.
Step 09: Presentation of Documents to the Bank
The exporter must affirm that he has all documents relating to shipping in place.
Step 11: The Realization of Export Proceeds
The exporter should address the banking formalities after furnishing a bill of exchange.
It is evident from the above that one must abide by various legalities to export toys from India. Toys business in India is thriving rapidly and it is certainly an ideal time to target different markets abroad. But to lay a solid foundation for an exporting house, one must fulfil all the legalities and stay in line with governing legislation.
Read Our Article: How to Start Export Business in India?