Exporting Hosiery from India: Documentation and Compliance Guide

## Introduction: Why Indian Hosiery Has Export Potential

India is among the world's top 5 exporters of hosiery and knitted garments. The combination of competitive manufacturing costs, quality cotton availability, and decades of technical expertise makes Indian hosiery attractive to buyers in Southeast Asia, the Middle East, Africa, and even Europe.

While Vinod Hosiery Factory (VHF) primarily serves the domestic wholesale market, we receive inquiries from overseas buyers regularly. This guide covers the documentation and compliance requirements for any Indian hosiery manufacturer or dealer considering exports.

## Step 1: Register Your Import-Export Code (IEC)

An **IEC (Import Export Code)** is mandatory for any export transaction in India.

**How to get IEC:**
1. Visit DGFT portal: https://dgft.gov.in
2. Register with PAN, Aadhaar, bank details
3. Submit online application
4. **Processing time:** 2-3 working days
5. **Cost:** Rs 500 (government fee)

IEC is a one-time registration and does not need renewal. You can start exporting within days of receiving it.

## Step 2: GST Registration and Letter of Undertaking (LUT)

Exports are **zero-rated under GST**, meaning you do not charge GST on exports. But you must file a **Letter of Undertaking (LUT)** annually with your GST department to claim this benefit without paying GST upfront:

1. Log into GST portal: https://www.gst.gov.in
2. Navigate to: Services → User Services → Furnish Letter of Undertaking (LUT)
3. Fill Form GST RFD-11
4. File before the financial year begins
5. No fee. Processing: instant.

With LUT in place, you can issue export invoices with "Supply meant for export under bond/LUT without payment of IGST."

## Step 3: Identify the Correct HS Code

HS codes (Harmonized System codes) determine import duties in the destination country.

| Product | HS Code (India) | Description |
|---|---|---|
| **School slacks (woven)** | 6203.41 / 6204.61 | Men's/Boys' trousers, woven cotton-poly |
| **Knit pajamas/lowers** | 6107.11 / 6108.21 | Knitted nightwear/lounge wear |
| **Thermal wear** | 6109.10 / 6110.20 | T-shirts/jerseys, knitted |
| **School uniforms (mixed)** | 6211.20 | Track suits and other garments |
| **Fleece jackets/hoodies** | 6110.30 | Jerseys, pullovers (man-made fibres) |

Confirm the HS code with your customs agent as classification can vary by material composition.

## Step 4: Export Documentation Pack

For every export shipment, you need:

| Document | Issued By | Purpose |
|---|---|---|
| **Commercial Invoice** | Exporter | Price, quantity, buyer details |
| **Packing List** | Exporter | Item-wise weight and dimensions |
| **Shipping Bill** | Customs (via agent) | Export clearance document |
| **Bill of Lading / Air Waybill** | Shipping line/airline | Proof of shipment |
| **Certificate of Origin** | Chamber of Commerce | For preferential duty (if applicable) |
| **GST Invoice with LUT** | Exporter | Tax-free supply evidence |

**Optional but useful:**
- **Inspection Certificate:** Third-party quality check (SGS, Bureau Veritas)
- **OEKO-TEX Certificate:** Required by European buyers for textile imports
- **Test Reports:** GSM, colorfastness, shrinkage (some buyers mandate this)

## Step 5: Packaging and Labelling for Export

Export packaging must be more robust than domestic:
- **Outer carton:** Double-wall corrugated board (minimum 150 gsm)
- **Labelling:** Country of origin ("Made in India") on every piece and carton
- **Barcode:** Buyers may require EAN-13 barcodes on individual pieces
- **Care labels:** Mandatory in EU and US (washing instructions, composition %)

## Step 6: Choosing a Freight Forwarder

Do not try to manage customs clearance yourself. A licensed customs house agent (CHA) or freight forwarder handles:
- Filing the shipping bill on ICEGATE
- Customs examination and clearance
- Booking container space or air cargo
- Arranging Certificate of Origin

**Major export hubs for hosiery from Delhi:**
- Inland Container Depot (ICD), Tughlakabad, Delhi — closest to Wazirpur
- JNPT, Mumbai — for large container shipments
- Air cargo via Indira Gandhi International Airport

## Export Incentives Available

India offers several export incentives relevant to hosiery manufacturers:

| Scheme | Benefit | Eligibility |
|---|---|---|
| **RoDTEP** | Rebate on taxes embedded in export product | All exporters |
| **DFIA** | Duty-free import of raw materials | Manufacturer exporters |
| **EPCG** | Import capital goods at zero duty | Manufacturer exporters |
| **MEIS (discontinued)** | Replaced by RoDTEP in 2021 | — |

Consult a CA or export consultant to claim applicable benefits.

## Common Compliance Mistakes to Avoid

1. **Shipping without IEC** — Illegal; shipment will be detained
2. **Wrong HS code** — Causes duty disputes at destination, delays clearance
3. **Undervaluing in invoice** — Can attract customs scrutiny
4. **Not filing LUT** — Results in GST being charged on exports unnecessarily
5. **Inadequate packaging** — Damage claims in transit hurt business relationships

## VHF's Export Readiness

VHF (GST: 07AAOPG8901A1ZZ) has IEC registration and is equipped to supply overseas buyers. Our SONY Selex and RICHMAN Selex school slacks meet international quality standards.

**For export inquiries:**
WhatsApp: +91-9582245320 | Email: info@vinodhosiery.in