| Regulatory
environment for exporters and importers have considerably
been eased by successive governments over last decade.
Gone are the nightmarish days when exporters and specially
importers had to go through maze of licensing requirements,
duty structure and various documentation for every shipment.
Today, the only mandatory regulatory requirement for
anyone wishing to enter exim business is the IEC code.
However, there are a few other regulatory issues that
you should be aware of before starting your exim venture.
How to Get
IEC Code
The Customs Authorities will
not allow you to import or export goods into or from
India unless you hold a valid IEC number (short for
Import Export Code Number). Getting IEC number is easy,
specially if you have a PAN card. An application should
be made to Regional Licensing Authority supported by
the following documents:
- Bank receipts in duplicate/Demand Draft
for payment of IEC Code fee of Rs. 1,000
- Certificate from the banker of the
applicant (in prescribed form)
- Two copies of passport size photographs
of the applicant duty attested by the banker of the
applicants
- A copy of Permanent Account Number
(PAN) issued by the Income tax Authority. If PAN is
not available a copy of the application of the PAN
should be submitted
- If the application is signed by an
authorized signatory, a copy of the letter of legal
authority may be furnished
- If there is a NRI interest in the firm
and NRI investment is to be made with repatriation
benefits, full particulars thereof with photocopy
of RBI approval must be submitted. If there is no
repatriation benefits a simple declaration will do
- A declaration that the proprietors/partners/directors
of the applicant firm/company, as the case may be,
are not associated as proprietor/partner/director
with any other firm/company which has been caution-listed
by the RBI. Where the applicant is so associated with
a caution-listed firm/company the IEC no. is allotted
with a condition that he can export only with the
prior approval of the RBI. Exporter's profile should
be submitted to the Regional Licensing Authority who
will grant an IEC number to the applicant
For more information, including application
form, list of licensing authorities and their jurisdiction
etc. - please visit
Appencices Section of Export Import Policy
Registrations
with Export Promotion Councils (EPC)
The Registration cum Membership
Certificate (RCMC) from an appropriate export promotion
agency or commodity board is required to avail various
benefits/concession provided in Export Import Policy
such as Duty Drawback. Application should be made in
prescribed form to the Export Promotion Council (EPC)
relevant to your product line. However, if your product
line is such that no EPC covers it, the RCMC may be
obtained from the regional licensing authority.
The application form should be accompanied by:
- A bank certificate in support of the
applicant's financial soundness
- A self certified copy of the IEC Code
- In case you wish to be registered as
manufacturer-exporter, please furnish necessary evidence
like SSI registration or copy of registration with
any other relevant authority. Please contact licensing
authority for more details
Once your application is granted, the
EPC or FIEO will issue the RCMC. The registration, to
remain valid for 5 years, will have information on your
status as merchant exporter or manufacturer exporter
You can find here list of all necessary resources including
Trade
Promotion Organizations and Commodity Boards
Classify Your
Product
Before exporting your products
overseas, you need to determine their classification.
Unlike selling in domestic market where currency, regulatory
environment, tariff structure etc. remains uniform throughout
the country - export means dealing with various countries
with diverse cultures, languages and regulatory environments.
In such situation, standardization or harmonization
of procedures becomes essential. Towards this goal,
International organizations have devised various nomenclature,
export import documents, classification schemes etc.
Together, these procedures remove ambiguity, set standards
and ensure seamless trade among all countries in the
world.
One of the most important standardization tools is International
Trade Classification - Harmonized System (ITC-HS). This
a merchandise classification scheme that all countries
in the world have adopted. This scheme has 99 chapters
(from 01 to 99) dealing with 99 groups of merchandise.
Each chapter or group is divided into sub-groups and
each sub-group is further divided into sub-sub-groups.
Each group or sub-group is given a unique number called
ITC-HS code.
To view Indian Export Import Policy in terms of ITC-HS
classification - please visit
VANIK.COM
To locate the ITC code of your product or find description
of a given ITC code - please use
ITC Code Search Facility
The above is an overview of general regulatory requirements
for export import trade. For detail information specially
information on specific products where licensing is
required, negative list, restricted policy etc. - please
see
Export Import Policy and Handbook of Procedures
We have compiled all necessary export import documents
and many other day to day requirements in a Compact
Disk called MyInfoBanc
CD Members of The Great Indian Bazaar in Member
- Plus and above level get this CD free. Others may
order the CD for Rs. 690/-
Happy and Productive Surfing
Dr. Amit K Chatterjee
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