{"id":33130,"date":"2021-07-19T15:57:12","date_gmt":"2021-07-19T10:27:12","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=33130"},"modified":"2021-07-20T10:50:56","modified_gmt":"2021-07-20T05:20:56","slug":"export-handicraft-from-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/export-handicraft-from-india\/","title":{"rendered":"Export Handicraft from India: Scope, Benefits, &amp; Procedure"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The handicraft sector is one of the fastest-growing sectors in India.&nbsp; Over time, this sector has made some significant contributions to the nation\u2019s economy. Also, it has played a vital role in creating massive employment in India. The Indian handicraft sector is bifurcated with more than 7 million regional artisans &amp; over 65,000 exporters promoting craftsmanship in local as well as international markets. This blog addresses those individuals who are intending to export handicraft from India and are eager to use it as a legit business option.&nbsp; Apart from legalities, this blog will also unveil some information on the scope and benefits associated with this business model. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/export-handicraft-from-india\/#An_Overview_on_Export_Destinations_and_Key_Markets\" >An Overview on Export Destinations and\nKey Markets<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/export-handicraft-from-india\/#Recent_Developments_in_the_Handicraft_sector\" >Recent Developments in the Handicraft\nsector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/export-handicraft-from-india\/#How_Export_Promotion_Council_is_helping_businesses_to_export_handicraft_with_peace_of_mind\" >How Export Promotion Council is helping businesses to export handicraft with peace of mind?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/export-handicraft-from-india\/#Compulsory_LicensesRegistration_to_export_handicraft_outside_India\" >Compulsory Licenses\/Registration to export handicraft outside India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/export-handicraft-from-india\/#Mandatory_Documents_for_Exporting_Handicraft_Goods_beyond_Indian_Territory\" >Mandatory Documents for Exporting\nHandicraft Goods beyond Indian Territory<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/export-handicraft-from-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"An_Overview_on_Export_Destinations_and_Key_Markets\"><\/span>An Overview on Export Destinations and\nKey Markets <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>Exportation of the various segment during last\nyear stood as follow: <\/em><\/strong><\/p>\n\n\n\n<ul><li>Woodwares = US$ 611.48 million<\/li><li>Art metal wares = US$ 353.92 million<\/li><li>Embroidered &amp; crocheted goods = US$ 463.13 million<\/li><li>Imitation jewellery = US$ 144.19 million<\/li><li>Handprinted textiles &amp; scarves = US$ 239.73 million<\/li><li>Miscellaneous handicrafts = US$ 714.67 million<\/li><\/ul>\n\n\n\n<p>India handicrafts are shipped globally, with the top 5 destinations being the United States, <strong><em>United Kingdom<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/United_Kingdom\"><strong><em>[1]<\/em><\/strong><\/a><\/sup>, United Arab Emirates, France, and Germany. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Recent_Developments_in_the_Handicraft_sector\"><\/span>Recent Developments in the Handicraft\nsector <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Indian Government has escalated the incentive\nrate under the ambit of Merchandise Export from India Scheme (MEIS) to 7% for\nhandicraft goods which will aid exporters to recoup the input costs and will\nlead to optimal pricing &amp; boost export. <\/p>\n\n\n\n<p>In Sep 2020, the Ministry of Textiles sanctioned Rs 2.8 crores for the Integrated project for growth and incentivization of handicrafts of Varanasi to compensate for the fiscal crisis triggered by the Covid 19 pandemic.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><\/p>\n\n\n\n<p>To aid local weavers and artisans before the advent of the festive season, the e-commerce giant Amazon launched the Handicrafts Mela from Sep 26, 2020, to Oct 10, 2020, which helped over 8 lakhs workers linked with this sector. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/guide-to-raise-iec-certification-for-a-partnership-firm\/\">Step by Step Guide to Raise IEC Certification for a Partnership Firm <\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Export_Promotion_Council_is_helping_businesses_to_export_handicraft_with_peace_of_mind\"><\/span>How Export Promotion Council is helping businesses to export handicraft with peace of mind? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Exporting is a risky business especially when\nit comes to recovering payment from clients located abroad. EPCH has various\ninsurance schemes at their disposal that enable exporters to avert such risk\nwith ease. Exporters who aren\u2019t in the condition to withstand losses incurred\nby such activities must enroll themselves under this scheme without thinking\ntwice. <\/p>\n\n\n\n<p>The Export Promotion Council for Handicrafts\n(EPCH) is a government-backed entity administered by the Ministry of Textiles,\nGovernment of India. EPCH is also recognized as a \u2018model council\u2019, a\nself-sustaining entity that self-finances all its promotional activities. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Compulsory_LicensesRegistration_to_export_handicraft_outside_India\"><\/span>Compulsory Licenses\/Registration to export handicraft outside India <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Following are the\nfundamental documents that one must arrange for venturing into the business of\nhandicrafts export. <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"998\" height=\"757\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/07\/business-of-handicrafts-export.png\" alt=\"business of handicrafts export\" class=\"wp-image-33140\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/07\/business-of-handicrafts-export.png 998w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/07\/business-of-handicrafts-export-300x228.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/07\/business-of-handicrafts-export-768x583.png 768w\" sizes=\"(max-width: 998px) 100vw, 998px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Company registration<\/h3>\n\n\n\n<p><a href=\"https:\/\/corpbiz.io\/company-registration\"><strong>Company registration<\/strong><\/a> creates a legal foundation for any entities that intend to engage with EXIM or any other business domains. Remember that company registration is a mandate and one should not overlook it at any cost. Our legal framework offers the following business structures to the business owners in India <\/p>\n\n\n\n<ul><li>Private Limited company <\/li><li>Public Limited Company <\/li><li>One Person Company <\/li><li>Partnership firm<\/li><li>Limited Liability Partnership <\/li><li>Section 8 (mainly for NGOs and trust) <\/li><li>Nidhi Company <\/li><\/ul>\n\n\n\n<p>In case you opt for a business structure other than LLP and partnership, then you need to apply for the SPICe+ form available on the MCA\u2019s website. The top three companies mentioned in the aforesaid list revolve around plenty of legal formalities and seeks tedious post-registration compliances. Thus; if your scope of operation and number of members are on the lower side, then you can also opt for options like LLP and partnership firm and still functions as a legalized firm. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Permanent Account Number<\/h3>\n\n\n\n<p>Income generated via exporting activities attracts several deductions and exemptions under various sections of the Income Tax Act.&nbsp; To avail of these exemptions and deductions, exporters are mandated to register their export house with the IT department and obtain PAN.&nbsp; Remember PAN act as a mandatory document for availing IEC, Import Export Code. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Import Export Certificate <\/h3>\n\n\n\n<p>The import-export\ncode (IEC) is a basic legal document for any importers and exporters in\nIndia.&nbsp; Thus; ruling out this certificate\nis not prudent from the legal standpoint. One can hop onto the DGFT website to get\nthis certificate against a properly filled e-form and registration fees. Do not\nforget to open the current bank account in the name of your company before\nopting for this certificate. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">GST registration<\/h3>\n\n\n\n<p>The exportable goods do not attract Value Added Tax and Central Sales Tax provided the export house has VAT registration in place and obtains exemption as per norms cited under the concerned Acts. <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>GST registration<\/strong><\/a> is mandatory for every exporter with effect from the date fixed by GOI by 2017. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Registration with Export Promotion\nCouncil (EPC)<\/h3>\n\n\n\n<p>It is important that every exporter enrolls with EPC and avail of the Registration-cum-Membership Certificate&#8217; (RCMC). Presently, 21 EPCs are dealing with an array of commodities. The benefits extended to exporters are only accessible to the registered exporters having valid RCMC.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Registration with Export Credit and\nGuarantee Corporation of India (ECGC)<\/h3>\n\n\n\n<p>Exporters often encountered political and commercial risks in the global market. Thus, to avert such risks, it is pertinent for exporters to get enroll with the ECGC. This government-backed institution also aids exporters in accessing fiscal support from commercial banks and other related avenues.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Mandatory_Documents_for_Exporting_Handicraft_Goods_beyond_Indian_Territory\"><\/span>Mandatory Documents for Exporting\nHandicraft Goods beyond Indian Territory<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Pro Forma Invoice \u2013 Needed During Quality Check <\/li><li>Customs Packing List- Needed During Quality Check<\/li><li>Country of Origin or COO Certificate &#8211; <\/li><li>Shipping Bill<\/li><li>Commercial Invoice<\/li><li>Bill of Sight<\/li><li>Bill of Lading or Airway Bill<\/li><li>Bill of Exchange<\/li><li>Letter of Credit<\/li><li><a href=\"https:\/\/corpbiz.io\/iec-registration\"><strong>Import Export License<\/strong><\/a> ( for Shipping Purpose) <\/li><li>Warehouse Receipt ( If Inland Cargo Deport (ICD) is involved) <\/li><\/ul>\n\n\n\n<p>It is evident\nfrom above that one has to encounter myriad of legal implications and documentations\nto export handicraft from India. The Customs department, in particular, pays\nextra attention to shipping documents owing to the tightened law and prevailing\nActs.&nbsp; Since these documents are highly\nsusceptible to errors, it is pertinent to prepare the same under the guidance\nof a certified custom agent. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Handicraft export has witnessed sharp growth in the past few years due to ever-increasing global demand.&nbsp; To crank up this demand further, the Indian Government has introduced various schemes to boost local production and incentivize craftsmanship. Since the Indian economy is recouping swiftly after being dented by the Covid-19 Pandemic, it is certainly a good time for start-ups to engage with this sector in the form of an exporter.  <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/how-to-get-iec-code-in-india\/\">How to obtain IEC Code in India <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The handicraft sector is one of the fastest-growing sectors in India.&nbsp; Over time, this sector has made some significant contributions to the nation\u2019s economy. Also, it has played a vital role in creating massive employment in India. The Indian handicraft sector is bifurcated with more than 7 million regional artisans &amp; over 65,000 exporters promoting [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":33143,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[165],"tags":[1868],"acf":{"service_id":"16"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":11825,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/33130"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=33130"}],"version-history":[{"count":18,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/33130\/revisions"}],"predecessor-version":[{"id":33171,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/33130\/revisions\/33171"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/33143"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=33130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=33130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=33130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}