Overseas buyers often value proof of hand work and origin more than anyone, which makes Kasuti a natural export craft. But exporting brings registrations, paperwork and rules that change. This lesson sets out the first steps and the questions to ask – not the answers, which belong to your chartered accountant (CA) and the offices named.

What you’ll learn

  • The registrations exporters of Indian handicrafts are most often asked about.
  • What the Export Promotion Council for Handicrafts (EPCH) does.
  • Why to speak to your CA before the first shipment.
  • How to prepare samples and an export catalogue.

Four first steps

  1. Importer–Exporter Code (IEC). Issued online by the Directorate General of Foreign Trade (DGFT); it is generally needed to export as a business. Ask your CA whether you need it for the way you plan to export – for example, small parcels sold online versus larger shipments to an importer.
  2. The Export Promotion Council for Handicrafts (EPCH). EPCH is the export council for Indian handicrafts. It issues the membership certificate exporters use for many schemes (the Registration-cum-Membership Certificate, RCMC), and runs trade fairs such as the IHGF Delhi Fair. Ask EPCH about membership, what it gives you, and which fairs suit a small Kasuti business.
  3. Talk to your CA before your first shipment about GST on exports, any export benefits, how payment from abroad must be received, and what records you must keep.
  4. Prepare samples and a catalogue with sizes, materials, the stitches used, minimum quantities and lead times.

Note: rules on tax, registration and export change. Check the current position with a chartered accountant or the office named before you act – this lesson tells you what to ask, not the answer.

Is export right for you yet?

Before you begin, check:

  • Capacity. Can your team deliver a repeat order on time, at the same quality? Importers expect consistency.
  • Cash. Export orders can take a long time from order to payment. Can you fund materials and makers’ pay in between?
  • Proof. Can you show who made the work, how they are paid, and that no child labour is used? Overseas buyers increasingly ask.
  • Time. Paperwork, emails across time zones and samples take hours away from stitching.

The export catalogue

For each product: photos (front, back, detail, in use), product code, size, fabric and fibre content, thread, stitches, colours available, care, minimum order quantity, lead time for samples and for bulk, and packing details. Add a page on Kasuti, the GI and your makers.

Worked examples

Example 1: two ways to start. Path A: sell single pieces to overseas buyers through an international handmade marketplace or your own site, shipping parcel by parcel. Path B: sell in bulk to an overseas shop or importer, found at a trade fair. Path A needs less capacity but more parcels; Path B needs capacity, samples and stronger paperwork. Ask your CA what each path requires.

Example 2: lead time for an importer. Lead time = time to buy materials + (pieces × hours per piece ÷ team hours per week) + finishing and checking + packing + shipping. Quote the total, with a margin for delays, in weeks.

Example 3: a sample set. Three products in two colourways each, every one labelled with its code, size and fibre content, plus a back swatch. Send with the catalogue and keep an identical set yourself.

Tips, tricks and hacks
  • Use official websites for DGFT and EPCH; agents may charge for steps you can do yourself. Ask your CA which are official.
  • Keep one export folder with every registration, certificate and renewal date.
  • Write fibre content precisely (“100 % cotton”), because many countries require it on labels.
  • Price in one currency per buyer and agree it in writing; ask your CA and bank about receiving foreign payments.
  • Start with small orders to learn the process.
  • Talk to other craft exporters through EPCH events.
  • Keep sample costs in your price method; samples are a real cost.
  • Translate the story for key markets once you know where buyers are.
Problems and how to fix them

You don’t know where to start.

  1. Book a CA meeting with this lesson’s questions.
  2. Contact EPCH for its guidance for new exporters.
  3. Prevention: start with Path A (single parcels) while you learn.

An overseas buyer wants a price before you know costs.

  1. Give a range and a date for a firm quote.
  2. Work out shipping and paperwork costs with a freight forwarder or courier.
  3. Prevention: an export price sheet built from your method plus export costs.

The buyer asks for documents you don’t have.

  1. Ask exactly which documents, and why.
  2. Ask your CA, EPCH or a freight forwarder how to get them.
  3. Prevention: check document needs before agreeing the order.

Samples cost a lot and don’t lead to orders.

  1. Send samples only to buyers who have shown real interest.
  2. Ask whether the buyer will cover sample or shipping costs.
  3. Prevention: good photos and video first; samples second.

A large order is more than your team can make.

  1. Offer a smaller first order or staggered deliveries.
  2. Partner with a cooperative you know (Module 5).
  3. Prevention: be clear about capacity from the first conversation.
Mistakes to avoid
  • Shipping before talking to your CA.
  • Using unofficial websites or agents for registrations without checking.
  • Promising quantities you can’t make.
  • Vague fibre content on labels.
  • Forgetting export costs in your price.
What to ask your CA, lawyer or the office
  • CA: “Do I need an Importer–Exporter Code (IEC) for how I plan to export, and how do I apply through DGFT?” (Check current.)
  • CA: “How does GST apply to my exports, and is there anything I must file or claim?”
  • CA and my bank: “How must I receive payment from overseas buyers, and what records do I keep?”
  • CA: “Are there export benefits or schemes that could apply to handicrafts? Which documents would I need?” (Check current.)
  • EPCH: “Should I take membership and an RCMC? What does it give a small exporter, and what does it cost?” (Check current.)
  • EPCH or the handicrafts office: “Do my products need a certificate of origin or any other document for the countries I plan to sell to?” (Check current.)
  • Lawyer: “What should a simple sales agreement with an overseas buyer include?”
Check yourself
  • Have you asked your CA the export questions above?
  • Do you know whether you need an IEC, and how to apply?
  • Have you contacted EPCH?
  • Do you have a catalogue with fibre content, sizes and lead times?
  • Can your team deliver a repeat order on time?
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