Export incentives look great on paper—duty benefits, smoother procurement, better operating leverage.

But exporters discover the real bottleneck somewhere else: cashflow + compliance around receiving export payments.

So yes—EOU vs SEZ matters. But the right choice is the one that fits your ops and keeps your export cycle clean end-to-end.

Export Oriented Unit (EOU): Meaning (plain English)

An EOU is a manufacturing or service unit that operates under the EOU scheme in the Foreign Trade Policy—built to promote exports by giving duty/tax-linked benefits, in exchange for export performance and compliance. 

And unlike SEZ units, an EOU is not restricted to a notified zone—your location can be chosen based on your business reality (factory, talent, suppliers, logistics).

Key EOU obligations exporters should actually understand

The core commitment is positive NFE, computed cumulatively over a 5-year block (from commencement).

Translation: the forex you earn through exports must be higher than the forex you spend on imports (over the block).

EOU compliance is mostly about proving you’re doing what you said you would:

It can feel heavy early on, but once your cadence is set, it becomes a repeatable monthly/quarterly routine.

DTA sales in EOU nuance—this is where many drafts get inaccurate.

Practical takeaway: DTA permissions are real—but your exact entitlements are best validated against your LoP conditions + current FTP/HBP and DC guidance.

A Special Economic Zone (SEZ) is a notified zone governed by the SEZ Act, 2005 and SEZ Rules, 2006. 

The defining idea is legal/tax treatment: for authorised operations, an SEZ is deemed to be territory outside the customs territory of India. 

This is why SEZs tend to feel more “contained”: gate controls, specified officer processes, SEZ documentation, zone-level administration—because the framework is designed like an export enclave.

Units in SEZ operate through approvals under the SEZ Rules framework, including Letter of Approval validity and DC administration. 

Difference between SEZ and EOU (EOU vs SEZ) — at a glance

GST &amp; duties for SEZ vs EOU (clean explanation)

SEZ under GST (what “zero-rated” actually means)

Supplies to SEZ units for authorised operations are zero-rated under the IGST Act. 
In practice, this is designed to reduce working-capital lock-up compared to pay-and-refund flows (subject to documentation/endorsements).

Under the EOU framework, domestic procurement can follow regular GST mechanics, and the benefit is not “no GST exists”—it’s that export-linked structures and scheme conditions support the unit’s export economics. 

Mistake exporters make: treating EOU like SEZ for GST. They’re not the same regime.

EOU vs SEZ: which one should exporters choose?

Use this decision logic (simple, real-world):

Don’t pick based on “allowed/not allowed”—pick based on how duties/taxes apply and how frequently you’ll use DTA as a revenue line. SEZ DTA sales are treated like imports and duty incidence can be significant

EOU/SEZ benefits don’t matter if your export payments stay messy

You can optimise duties, get the right approvals, and maintain NFE.

you still end up firefighting cashflow and compliance.

And the most frustrating part is: banks often don’t give receivers real-time clarity on incoming transfers. That creates operational drag exactly when you’re trying to run exports professionally.

Where Skydo fits (for exporters in EOU or SEZ setups)

Skydo doesn’t change your EOU/SEZ status—but it reduces the friction that makes export operations feel heavier than they should.

1) Real-time payment visibility (instead of chasing)

Skydo positions real-time tracking inside your dashboard so you can see payment status without forcing constant follow-ups. 

2) Cleaner compliance trail (FIRA without the back-and-forth)

Skydo states that FIRA is generated automatically and is available from the dashboard. 

3) Transparent fees + live FX (predictability matters in exports)

Skydo positions flat-fee pricing (instead of percentage skimming) and highlights no hidden FX markup on its materials. 

4) RBI-authorised framework (trust layer)

Skydo has publicly announced receiving RBI authorisation as a PA-CB.

Bottom line:
EOU vs SEZ decisions improve your export economics.
But your export cycle only feels “smooth” when payments + tracking + documentation stop being a daily uncertainty.

If you want your next USD/EUR receipt to come with visibility + predictable fees + downloadable documentation, Skydo is worth evaluating alongside your existing setup.

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Trade credit is when a seller lets a buyer pay later instead of paying upfront — usually on agreed terms like Net 30, Net 60, or Net 90.

For exporters, trade credit often means shipping first and receiving money later. And once you do that, the real question becomes:

How do you fund the gap safely,&nbsp; without choking your cash flow or taking on buyer default risk?

The exporter reality: “You’re stuck in the middle”

Imagine you’ve landed a bulk order from an international buyer. They ask for 90-day terms.

You ship the goods.
Your suppliers want money upfront.
Payroll doesn’t wait.
But your invoice does.

That gap between shipping and payment can limit how many orders you can take, and turn a “growth” deal into a working-capital problem.

That’s trade credit in real life: simple in theory, stressful in operations.

Trade credit is when a supplier delivers goods/services before getting paid, and the buyer settles later on agreed terms.

And sometimes you’ll see early-payment discounts like:

Trade credit examples (exporter scenarios)

Scenario 1: Service exporter / freelancer

A digital marketing agency invoices a US client $10,000 on Net 30. Payment arrives in a month, but payroll is due next week. The work is done — cash isn’t.

A garments exporter ships a $50,000 order on Net 60. The buyer pays two months later, but the exporter needs to pay the fabric supplier now to start the next run.

An India-based seller exports via a marketplace where payouts happen on a cycle (e.g., 14 days after sales). During peak season, that payout lag ties up cash needed for restocking.

What these have in common: you’re profitable on paper, but cash gets trapped in the payment window.

Why exporters offer trade credit (and when it becomes risky)

Exporters offer trade credit because it helps them:

But trade credit gets risky fast when you don’t plan for:

If the buyer misses the deadline, disputes, or disappears, you’ve already shipped and spent the cost.

“Damaged goods.” “Short quantity.” “Quality mismatch.”
These aren’t rare — and even a partial deduction can wreck your cash forecast.

You invoice in USD today, get paid 60 days later. If INR strengthens in that window, you receive less in rupee terms when converted.

When one buyer funds most of your revenue, one delayed invoice becomes a company-wide cash crunch.

Trade credit vs export credit vs letter of credit (don’t mix these up)

These three sound similar. They aren’t.

A commercial agreement between you and the buyer: ship now, pay later. No bank guarantee. You carry the risk.

Bank financing that helps bridge the export cycle — including pre-shipment and post-shipment finance (and this applies to both goods and eligible service exports). 

In RBI’s guidance, packing credit (pre-shipment) can be liquidated using export bill proceeds, effectively converting it into post-shipment credit. 

A bank-backed payment instrument: the buyer’s bank agrees to pay if you meet documentation conditions. Lower payment risk, but more paperwork and fees.

Simple rule: If you offer Net terms without protection, you’re acting like the lender — unless you use tools that get you paid earlier or reduce default risk.

How exporters fund the trade credit gap (practical playbook)

Option 1: Pre-shipment finance (packing credit)

Use when you need cash before shipping to fund raw materials, production, or purchase.

RBI guidance explicitly covers liquidation/conversion mechanics: packing credit can be liquidated from export bill proceeds, converting it to post-shipment credit. 

Option 2: Post-shipment finance (bill purchase / bill discounting)

Use when you’ve shipped and raised the export bill,&nbsp; but you need cash before the buyer pays.

You sell invoices to a factor who pays you now and collects from the buyer later (sometimes with credit protection, depending on recourse terms).

Option 4: Forfaiting (larger / longer receivables)

Forfaiting is a trade finance method where exporters sell medium-to-long-term foreign receivables at a discount, often without recourse (meaning the forfaiter takes the non-payment risk). 

Option 5: Credit insurance (de-risk open account)

Doesn’t give upfront cash, but protects you if the buyer defaults, especially useful when you’re scaling trade credit to new buyers.

What exporters should check before offering trade credit (quick checklist)

Where Skydo fits in an exporter’s working-capital cycle

Trade credit creates the gap: you ship now, get paid later.

Skydo doesn’t provide trade credit or financing. But it targets the friction that makes waiting harder than it needs to be:

Skydo offers live FX / zero FX margin (so your “expected INR” doesn’t get quietly shaved by spreads you only notice later). 

2) Faster settlement (reduces idle time once buyer pays)

Skydo positions fast settlement (often framed as ~24-hour processing in their materials). 
(This doesn’t shrink the buyer’s Net 60, but it reduces the extra days lost after payment is initiated.)

Skydo offers instant and free FIRA&nbsp; from the dashboard as part of the receiving workflow. 

Skydo references ISO 27001 and SOC 2 compliance in its compliance communication. 

Bottom line: Trade credit stretches your cash cycle. Financing tools bridge the gap. And your payment setup determines how much extra time, FX leakage, and compliance follow-ups you lose per receipt. Skydo’s value is reducing that avoidable friction once the buyer pays.

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If you’re a new exporter, this is how it usually goes.

You’ve finally got your IEC, your first shipment is being planned, and you’re feeling on track… until someone (a consultant, a CHA, your buyer, or your internal ops person) asks:

That one question matters because RCMC is what connects your exporter identity to your industry council, and that’s what unlocks most export benefits, authorisations, and council programs.

This guide breaks the process down in plain steps: what EPC/RCMC means, how to pick the right council, how to apply online through DGFT e-RCMC, what documents you’ll need, and what to do for renewal/amendment.

Export Promotion Council registration vs IEC (what’s the difference?)

Your IEC is your base license to export/import. FTP 2023 states that no export/import of goods should be done without an IEC (unless exempted). Think of IEC as your trade ID.

Your RCMC is your sector registration + membership certificate issued by your EPC/commodity board/development authority (the “Registering Authority”). Think of RCMC as the proof that you belong to a recognised export body for your main line of business.

You generally need an active IEC first, then you apply for RCMC.

What is an Export Promotion Council (EPC)?

An EPC is a sector-specific body (engineering, textiles, gems &amp; jewellery, services, etc.) that supports exporters with things like industry programs, trade events, market access support, and policy representation.

DGFT recognises multiple “Registering Authorities”, including EPCs and commodity boards, and also publishes the official list in Appendix 2T.

What is RCMC (and why do exporters care)?

RCMC stands for Registration-Cum-Membership Certificate.

It becomes important when you do anything that touches export benefits/concessions/authorisations, because DGFT clarified that RCMC must be valid on the date you apply to DGFT for benefits/concessions under FTP.&nbsp;

So even if your export operations are running, RCMC is what keeps your “benefits track” clean

How to pick the correct council (without overthinking it)

Step 1: Decide your main line of business

DGFT’s policy circular makes it explicit: while obtaining RCMC, an exporter declares their main line of business and must obtain RCMC from the council concerned with that line.

Step 2: Match it to the official DGFT list (Appendix 2T)

DGFT’s Appendix 2T lists Export Promotion Councils / Commodity Boards / Development Authorities and their jurisdictions.&nbsp;

If you’re unsure, search: “DGFT Appendix 2T RCMC” and match your product category.

Step 3: What if you export multiple categories?

If your exports don’t cleanly fall under one council, DGFT’s e-RCMC user guide mentions that:

(There are also specific notes for exporters based in North-Eastern states in the same DGFT guide.)&nbsp;

Quick examples (so you can self-check fast)

How to do Export Promotion Council registration online (DGFT e-RCMC)

This is the clean “do it yourself” path.

DGFT’s e-RCMC page lists key prerequisites:

DGFT’s user help file maps the flow like this:&nbsp;

Documents required for EPC/RCMC registration (practical checklist)

DGFT’s portal flow is standard, but document requests can vary by council. Here’s what most exporters keep ready so the application doesn’t get stuck mid-way:

Often asked (especially for fee slabs/membership categories)

Practical tip: Most delays come from mismatches (IEC address ≠ GST address ≠ business proof) and unreadable scans, not from “complex rules”

Engineering Export Promotion Council registration (EEPC) — what’s different?

If your main line is engineering exports, EEPC India is typically the registering authority you pick inside DGFT e-RCMC.

If you export engineering categories such as industrial machinery, automobiles/components, iron &amp; steel and related engineering products, EEPC is usually the fit (again — “main line of business” is the test).&nbsp;

You apply through DGFT e-RCMC and choose EEPC as the Registering Authority. The DGFT application flow stays the same.&nbsp;

EEPC publishes slab-based subscription tied to export turnover. One page shows slabs like up to ₹30 lakhs = ₹6,500 and scaling upwards by turnover.&nbsp;

Here’s the slab table you already have (kept intact), but with one important fix:

Important correction: This fee table is typically framed as “Subscription for FY ____ based on export turnover of previous FY ____.” One EEPC page format shows “Export during previous year 2024-25 → Subscription for 2025-26”.

In practice, EEPC membership is useful for:

Fees, validity, and timelines (what to actually expect)

DGFT states: RCMC is deemed valid from 1 April of the licensing year and valid for 5 financial years ending 31 March of the final year (unless specified otherwise).&nbsp;

Fees depend on the Registering Authority and usually vary by exporter category + export turnover slabs. For engineering exporters, EEPC’s slabs are a clear example of how councils structure this.&nbsp;

DGFT’s portal makes submission straightforward; approval time depends on the council’s verification and document quality. Most “delays” are self-inflicted:

Renewal, amendment, and common problems (so you don’t get stuck)

DGFT’s help file says renewal can be done inside the portal flow:
Services → e-RCMC → Renewal of RCMC (for certificates that are expired).&nbsp;

DGFT’s v4.0 help file documents the amendment path:
Services → e-RCMC → Amendment for RCMC, and the portal pre-populates old details for editing.&nbsp;

“Main line changed” — do you need a fresh RCMC immediately?

DGFT clarified that if your main line of business changes after obtaining RCMC from a council, that RCMC remains acceptable till the expiry of its validity (you don’t need to rush into a fresh one immediately while the old one is valid).&nbsp;

1) Wrong council selected
RCMC is tied to the registering authority you choose. If you pick the wrong one, you may need to apply afresh with the correct authority.

2) IEC not linked / profile not updated. DGFT explicitly calls out the need for an updated IEC profile. Fix the IEC profile first, then resume e-RCMC.&nbsp;

3) Payment done, status still pending
Wait a bit and recheck payment history/status. If it’s still stuck, raise a helpdesk ticket.

4) Document format/size issues
Keep PDFs clean, readable, and consistent with the portal’s format expectations.

DGFT provides toll-free numbers and also lists the helpdesk email:

After EPC registration: Set up how you’ll get paid,&nbsp; the Skydo way

Getting your RCMC is the “registration” part of exporting.
Getting paid smoothly (and staying audit-ready) is the part that actually affects your cash flow.

This is where many new exporters hit friction with banks:

Skydo is designed to remove that friction for exporters. Instead of asking your buyer to do an international wire, Skydo gives you global bank account details in minutes (US/UK/Canada/Australia + more), so your buyer can pay you like a local transfer.&nbsp;

Proforma Invoice: Meaning, Format And Template

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India’s export engine is already huge, and still growing. In FY 2024–25, India’s total exports (merchandise + services) were about $825B (merchandise $437.5B, services $387.5B).&nbsp;

If you’re thinking “How do I start an export business in India?”, the good news is: the path is predictable. The bad news is: people skip steps, and then get stuck at customs, with bank paperwork, or when the payment arrives, and the numbers don’t match.

This guide is that roadmap, written so you can actually follow it.

Step 1: Market research that actually helps you choose a product

Most first-time exporters start with a product they like. Better approach: start with where India already has export depth, then niche down.

A quick reality check from India’s recent export mix (calendar year 2024) shows where volumes concentrate: mineral fuels &amp; oils, electrical machinery, gems/precious stones, machinery, pharma, organic chemicals, cereals, etc.&nbsp;

Use that only as a starting point. Your real job is to find a product-market combo where:

Practical workflow (simple, not fancy):

Step 2: Check HS code + restrictions before you do anything else

Every export shipment is anchored to an HS code. It decides:

If your product is restricted, you’ll need the relevant permissions/licenses before shipping (DGFT and/or product-specific bodies).

This step saves you from the worst kind of delay: a shipment ready to go, but blocked because your classification or approvals weren’t ready.

Step 3: Register your business (and open the right bank account)

To start an export business in India, you need a legal business entity. Choose based on how you’ll operate:

Next: open a current account with an Authorised Dealer (AD Category-I) bank for foreign exchange transactions. This becomes your base layer for inward remittances, documentation, and reconciliations.

Step 4: Get the core IDs: PAN, GST, IEC (and then RCMC)

IEC is your passport for exporting. Without it, you can’t legally clear shipments or run export documentation workflows smoothly.

RCMC (Registration-cum-Membership Certificate)

If you want to access export incentives/benefits and participate through Export Promotion Councils, RCMC becomes relevant. Think of it as a “membership + eligibility” layer that helps you play fully in the export ecosystem.

(And yes, if you’re searching how to start import export business in India or how to start an import and export business in India, the above stack still applies. Import adds additional product and compliance checks, but IEC/GST/banking remain foundational.)

Step 5: Set up your export documentation workflow (so payments don’t get messy later)

Exports are paperwork-heavy, but you can make it systematic.

RBI/FEMA: export proceeds timeline (don’t ignore this)

Export proceeds must be realised and repatriated to India within the permitted time period. Recent FEMA export regulations reflect a 15-month realisation window (with RBI having powers around extensions/conditions).&nbsp;

So when you set payment terms with the buyer, keep this timeline in mind—especially if you’re tempted to allow very long credit periods.

Step 6: Logistics, Incoterms, packaging, insurance

This is where many new exporters lose money quietly.

Work with a freight forwarder/customs broker who has experience in your category + destination lanes. Their value is not just shipping—it’s preventing avoidable mistakes.

Understand Incoterms (without overthinking)

Incoterms decide: who pays, who insures, who bears risk, and when responsibility shifts.

If you’re new, avoid overcomplicated terms initially. Pick a model where responsibilities are clear, and you’re not accidentally taking on costs you didn’t price in.

Treat packaging as compliance, not aesthetics. And ensure shipments, especially early on, because one incident can wipe out your margin.

Step 7: Decide payment terms (this determines how safe your export business is)

Export businesses don’t fail only because of demand, they fail because cash flow breaks.

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