Export essentials
Posted on Mar 7, 2025
Try to imagine this: You've arranged a bulk purchase from a German buyer for you business, going through all the checklist logistics are in order, payments appear seamless, and your fabrics are also ready to go.
And then disaster hits: Your delivery is halted by customs because the shipment lacked some certification. And what does it lead to? Delays, penalties, and an agitated buyer.
This isn’t just a rare case which we saw above—it is something which happens regularly to SME textile exporters in India. The truth is, export compliance isn’t a formality—it’s a business necessity now.
Without the right documentation and adherence to regulations, your exports could face unexpected roadblocks.
In this guide, we’ll try to make things simple in compliance updates, key documentation, and best practices for you to ensure your textile exports clear customs smoothly and reach global buyers without disruptions.
What It Means for Textile SMEs
Export compliance guarantees that your textile goods are compliant with the importing nation's legal, regulatory, and quality requirements.
The EU, USA, and UK impose stringent textile regulations covering the quality of fabric, safety, and ethical production. One document short can result in:
Customs rejection of your shipment.
Prolonged delays and storage charges.
Or missed business opportunities with overseas buyers.
For Indian textile SMEs, compliance is not just about rules which govern it—compliance is about securing your business and reputation in the industry.
Important Compliance Rules That Every Textile Exporter Needs to Obey
1. Import Export Code (IEC) – The First Step
You must acquire an Import Export Code (IEC) from the Directorate General of Foreign Trade (DGFT) before you can lawfully export textiles.
IEC registration is essential for customs clearance, international payment, and export incentives.
It is also necessary for exporting units to register with export promotion councils such as AEPC (Apparel Export Promotion Council).
2. Textile-Specific Certifications – Essential for International Buyers
All international purchasers always insist on having your textiles certified against environmental and safety requirements. Key among such certifications is the:
OEKO-TEX Standard 100, a mark of confidence that textiles have been certified chemical-free.
GOTS certification necessary for exportation of organic fabric.
And the REACH Compliance that tests the safety conformity of textiles under EU law.
You risk export refusal or compromise on the authenticity of your textiles if they don't carry any of these certificates.
3. BIS (Bureau of Indian Standards) Regulations
Protective Textiles (Quality Control) Order, 2022 requires BIS certification for some textile products. Without BIS certification, if you export textiles, your shipments may be detained at Indian ports itself—before they even reach your customer.
Related Read: What is a Bill of Lading and Why Does it Matter for Exports?
Key Export Documents You Shouldn’t Miss
Having your paperwork in order can be the difference between a smooth customs process and a frustrating delay.
Here are some essential documents every exporter should be familiar with:
Proforma Invoice & Purchase Order: These confirm that the buyer agrees to your pricing and terms.
Letter of Credit: A very secure way to make sure you get paid when working with international clients for your business.
Bill of Lading (B/L) or Airway Bill: Crucial for shipping and customs clearance—this tracks your shipment from origin to destination.
Certificate of Origin & Inspection Certificate: These prove where your product comes from and that it meets quality standards.
Related Read: How to Secure Export Payments: Understanding Letters of Credit
Taxation & Refunds for Textile Exporters – How to Save Money
Indian textile exporters can recover export-related taxes and duties through various schemes.
Refunds under GST for export goods are filed either by submitting an LUT Bond for free exports or submitting an IGST refund, in which taxes are remitted and eventually refunded.
The drawback of Customs duty permits the reclaiming of imported duties on material used for exports.
Compliance under forex legislation will also need compliance with RBI regulations and FEMA on foreign transactions.
How to Stay Compliant and Avoid Export Penalties
No exporter wants to deal with last-minute compliance issues or unexpected fines. Here’s how you can stay ahead of the curve:
1. Stay Updated with Trade Policies and Incentive Schemes
India’s Production Linked Incentive (PLI) scheme offers valuable financial support to textile exporters.
With the Union Budget 2025–26 boosting funding for the textile sector by over 57%, now’s a great time to make sure you're tapping into these benefits. Staying informed means you're not leaving money on the table.
2. Go Digital with Compliance Tools in the Industry
Still managing compliance across multiple spreadsheets, email threads, and half a dozen government portals? That’s a way to run into delays—or worse, costly mistakes which can harm your business.
Instead, streamline your process using official platforms like DGFT, ICEGATE, and EPCES. They help you track applications, upload documents, and stay on top of what’s due.
And if you want an even simpler way to handle international payments and stay compliant? Tools like Infinity make it easy to keep your paperwork audit-ready, without the stress of the high costs.
Compliance Recap – A Quick Checklist
To facilitate hassle-free exports, get your:
IEC Code registered.
Acquired certifications such as OEKO-TEX, GOTS, BIS, and REACH.
Remain current with evolving global textile regulations.
Employ trade finance instruments such as Letters of Credit to guarantee payments.
Last Word – Make Compliance Your Strength, Not a Roadblock
Export compliance is not simply a matter of rule-following; it's about establishing a robust, international textile business.
By remaining compliant with the latest regulations, obtaining the correct certifications, and using trade finance products, SME exporters can minimise costly delays and grow with confidence.
To make compliance and payments easier, Infinity provides digital solutions to assist textile exporters in handling documentation, monitoring transactions, and obtaining payments hassle-free.
Eager to export with ease? Discover Infinity today and take your textile business to the world.
FAQs – Answering Your Textile Export Compliance Questions
Q1: How can I check if my textile exports meet international compliance?
Verify importing country regulations and procure necessary certifications such as OEKO-TEX, GOTS, and REACH. Government websites such as DGFT and EPCES offer the latest compliance information.
Q2: What are the biggest compliance mistakes SME textile exporters make?
A few of the common errors include failing to register for an IEC Code prior to export, forgetting necessary certifications that buyers abroad demand, and furnishing incorrect or incomplete export documents, resulting in delays.
Q3: How do I apply for GST refunds on textile exports?
You can claim on the GST portal under either the LUT Bond scheme for tax-exempted exports or the IGST Refund scheme to claim back paid taxes. Your tax advisor or DGFT office will be able to assist you.
