Trade License

Services Provided by FIEO in India and its Role in Export Trade

In FY 2022-23, India’s merchandise exports were the highest, accounting for 451.1 billion USD, and declined in FY 2023-24 to 437.1 billion USD. The FIEO has recently predicted that the exports of Indian merchandise will grow by 500-510 billion USD in FY 2025. The FIEO, amidst the Bangladesh crisis, wrote to the RBI to extend the realization of payment deadlines for the Indian exporters exporting to Bangladesh.

The FIEO recently also wrote to the Union Commerce and Industry Minister Piyush Goyal about their concerns with regard to the withdrawal of the Interest Equalisation Scheme.

Almost every issue cropping up for Indian exporters is addressed by the FIEO. What is FIEO? What is its role in Indian exports? What is its purpose, and what are its benefits? This article purports to address all these questions and provide insight into one of the most crucial pillars of Indian exports: the FIEO.

About the FIEO

The Federation of Indian Export Organisations (FIEO) is an organization established in 1965 by the Ministry of Commerce to promote and support Indian exports. Registered under the Societies Registration Act XXI of 1860, it is an organization that connects various entities involved in Indian exports, including the exporters, the government, financial institutions, railways, ports, etc., that are part of the export trade facilitation.

 It has provided a wide range of services to assist Indian exporters in navigating the complex global trade environment.

Role of FIEO in Export Trade

Below are some of the roles of FIEO in export trade for exporters such as:

1. Representative of the Indian Exporters

FIEO advocates for the needs of Indian exporters before the Indian government, voicing their grievances. It reviews, authorizes, and recommends the government’s import-export policies, seeking the best interests of the Indian exporters.

2. Platform for Global Reach

It organizes trade fairs and arranges media, publications, etc., that showcase Indian export products, helping the exporters expand globally.

3. Maintains Beneficial Global Relations

It maintains good relationships with many international entities that play important roles in international trade, such as the International Monetary Fund and the World Trade Organization.

4. Sponsor

FIEO can sponsor Indian exporters under various headings, such as Market Development Assistance grants and reimbursement of travel expenses for services related to India’s consultancy.

Core Services of the FIEO

The core services of the Federation of Indian Export Organization (FIEO) include providing guidance and support to Indian exporters through providing various core services such as:

1. Trade Promotion

One of the crucial services that the FIEO provides is the activities directed toward promoting exports. Several activities are undertaken to ensure India’s magnetic presence in the global markets, making it one of the major players in the global markets.

They are primarily focused on enhancing the visibility of Indian products and services in international markets and facilitating the establishment of profitable trade relationships. Some of these activities are:

• Export Facilitation

The FIEO helps Indian exporters identify lucrative export opportunities. It analyses global trends, demand patterns, and competitors’ landscapes to assist Indian exporters in bringing their products into global markets. It also helps identify potential markets that align with their product offerings, which can help maximize their chances of success.

• Trade Fairs and Exhibitions

The FIEO organizes and participates in trade fairs, providing a platform for Indian exporters to showcase their products to a global audience. It helps them build a network with potential buyers and secure business deals. The FIEO ensures that Indian export products are well-represented at these events, which enhances their international visibility.

• Buyer-Seller Meeting

The FIEO organizes buyer-seller meetings to provide a structured environment for Indian exporters to engage directly with international buyers. By fostering direct interactions, the FIEO helps bridge the gap between supply and demand and leads to fruitful business collaborations.

2. Capacity Building

A skilled and knowledgeable workforce is crucial to any successful export venture. Recognizing its importance, FIEO places a strong emphasis on capacity building. It organizes various programs aiming to build the capabilities of the Indian exporters. Some of them include:

• Training programs

The FIEO organizes a variety of training programs that are online as well as offline. Some of the topics dealt with in these training programs are:

International trade

A five-day web conference was arranged that provided a practical approach to understanding exports and imports. This course benefited single-proprietary businesses, small businesses, and large corporations.

Starting Export Business

A five-day online training program was arranged to guide many entrepreneurs in starting their export businesses and help them navigate the labyrinth of global market compliances.

Role of Digital Market in Business Growth

A four-day online training program helped the trainees understand the importance of digitalization in the success of exports. It educated them on the use of it in expanding their business.

FIEO offers internships for students from universities doing management studies. The head office takes 4 students, and the regional offices admit 2 students every year. The internships help the students gain insight into the trade complexities and learn to navigate them.

• Skill Development

FIEO takes several initiatives aimed at skill development that help to increase the competitiveness of Indian exporters in global markets. These initiatives include workshops on emerging trade trends, digital marketing, and supply chain management. These initiatives help Indian exporters to stay ahead of the curve in a rapidly evolving market.

• E-learning Platforms

Several online courses made available by the FIEO provide convenient access to training materials, certifications, and resources, enabling exporters to work on their skills at their own pace. These e-learning platforms benefit small and medium-sized enterprises with limited access to traditional training programs.

3. Information Dissemination

Being updated with the trade landscape information is very important while carrying out export practices. FIEO provides access to accurate and timely information that helps the exporters to make informed decisions. There are various channels through which they offer it. Some of them are enlisted below:

• Market Intelligence Reports

FIEO provides Market Intelligence reports that provide crucial insights into global market trends, demand-supply scenarios, and competitor strategies. These reports are especially beneficial for exporters entering new markets or looking forward to expanding their businesses further. It helps exporters better align their strategies with global trends.

• Export Guides and Handbooks

FIEO publishes various export guides and handbooks that provide step-by-step instructions on various aspects of the export process, including product classification, tariff structures, and customs procedures. These guides help simplify the export process, making it more accessible to businesses of all sizes.

• Trade Alerts

The FIEO issues trade alerts informing exporters about international trade policies, tariffs, and regulations. These alerts help exporters adhere to trade norms and avoid disruptions to their business practices.

4. Advisory Services

FIEO provides a wide range of advisory services to help exporters navigate the legal, regulatory, and financial aspects of international trade. These services include:

• Legal and Regulatory Advice

FIEO helps exporters understand the legal implications of their trade activities. It also guides them in complying with international trade laws, protecting intellectual property rights, and resolving disputes.

• Customs and Excise Assistance

FIEO helps exporters navigate complex customs regulations, manage documentation, and take advantage of duty drawbacks. It streamlines their operations and reduces the risk of delays and penalties.

5. Miscellaneous Services

The organization provides some other miscellaneous services like:

• It publishes a weekly bulletin with the latest information about international trade developments.
• It provides free access to the Indian trade portal, which offers information about Preferential tariffs, SPS/TBT, import statistics of 87 countries, and India’s contribution to imports.
• It provides an online chat service that helps to address exporters’ questions related to brand management, trademarks, copyrights, corporate legal affairs, etc.
• It also provides FOREX services like Forward calculator, Forward rates, Spot rates, etc.

Membership of FIEO under RCMC

Membership of FIEO is availed by obtaining an RCMC (Registration-cum-Membership Certificate). Several benefits follow after obtaining an RCMC. These are as follows:

1. There are several concessions and benefits that the exporter can avail under the Foreign Trade Policy.
2. After registering for RCMC, the exporter becomes a part of the worldwide network of exporters and importers.
3. They participate in international exhibitions and trade fairs, which help these exporters expand globally and showcase their products in international markets.
4. The certificate holders become eligible for various government schemes and incentives as well.

Obtaining RCMC Registration will help in getting membership of FIEO which grants exporters access to a global network, enabling the exporter’s ability to expand their business internationally,

Documents for RCMC Registration for Exporters

Exporters not registered with the Export Promotion Council are eligible for RCMC registration. The documents required for the RCMC registration are:

1. Import Export Code
2. Provide a copy of the Pan Card
3. Ensure your business is compliant with GST by submitting a GST registration certificate.
4. A Bank statement
5. Articles of Association, Memorandum of Association, Partnership deed or Trust deed.
6. SSI/IEM certificate (in case of manufacturing goods)

One can register for RCMC online. For this purpose, one must visit the Directorate General of Foreign Trade portal. One must select the “E-RCMC” option in the services section. Before applying for the RCMC, you must have an Import Export Code.

One can obtain this online from the same portal itself. Once the IEC is obtained, there is no need to renew it. However, RCMC requires it to be renewed. The members of the FIEO get to discuss their concerns with the higher authorities concerning excise, customs or with the Directorate General of Foreign Trade.

Conclusion

India is the 14th largest exporter in the world. Several factors contribute to this, including the FIEO, which is one of the important ones. Its active and robust mechanism to address the exporter’s issues and its efforts to promote Indian products in the global market has positioned India as one of the major players in global trade.

What makes it unique is its role, which acts as a bridge between the exporters and the government and many other entities that facilitate Indian exports. The knowledge that it offers regarding the markets that help make informed decisions saves several Indian exporters from risky transactions and helps them make a more calculated choice.

Don’t let the paperwork hold you back from global growth. Visit our website www.enterslice.com  and obtain your RCMC Registration with FIEO to thrive in international markets.

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