5 Mistakes First-Time Indian Exporters Make (And How to Avoid Them)

After working with dozens of first-time exporters across product categories, Rasp International has seen the same five mistakes repeated constantly. Every one of them is avoidable. Every one of them costs money or time when it happens.

Mistake 1: Using the Wrong HS Code

HS code classification determines your export incentive rate, your buyer country import duty, and whether your product needs any special certificates. A small difference at the sub-heading level can change your RoDTEP rate or make you ineligible for Duty Drawback. Yet most first-time exporters pick an HS code by keyword searching the customs tariff schedule without understanding the classification rules. Get this verified by a qualified EXIM professional before your first shipment. Fixing it after the fact is painful and sometimes impossible for past shipments.

Mistake 2: Skipping AD Code Registration

AD Code registration links your bank branch to the specific port you are exporting from. Without it, your CHA cannot file your shipping bill. Exporters who discover this gap 48 hours before their container loading date have a very bad day. It takes 5 to 7 working days to process. Do this before you book your first shipment, not after the container is already booked.

Mistake 3: Not Filing LUT Before Exporting

If you export without filing a Letter of Undertaking on the GST portal, you must pay IGST on your export goods upfront and wait for a refund from the GST department. Refunds can take months. Filing LUT costs nothing and takes 30 minutes. There is no logical reason to export without it, but many first-time exporters do not know it exists until their CA mentions it during a routine audit.

Mistake 4: Delaying RCMC Application

RCMC is required to claim enhanced RoDTEP rates and to access most government-funded export promotion schemes. Exporters who skip RCMC in the rush to ship their first order discover later that they received lower incentive rates on their early shipments. RCMC takes 3 to 4 weeks to process. Apply for it at the same time you apply for IEC, not months later after you have already lost incentive value on several shipments.

Mistake 5: Inconsistent Documents Across the Shipment Set

The description of goods on your Commercial Invoice must match the Packing List, must match the Shipping Bill, must match the export contract. Any inconsistency gives customs a reason to hold your shipment and gives your buyer a reason to dispute the invoice. Common errors include weight discrepancies, unit of measurement mismatches, and product descriptions that differ between documents. Run a document consistency check before every shipment until the process is second nature.

None of these are difficult problems once you know they exist. Rasp International provides a pre-shipment compliance checklist to all clients so none of these issues slip through. Contact us at sales@raspinternational.in before your first shipment goes out.