| 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
Related Links:
Source: FAIDA
- Newsletter on Business Opportunties from India and Abroad
Vol: 6, Issue 2
; July 8' 2005
Author :
Dr. Amit K. Chatterjee
(Amit worked in blue-chip Indian and MNCs for 15 years in various
capacities like Research and Information Analysis, Market Development,
MIS, R&D Information Systems etc. before starting his e-commerce
venture in 1997. The views expressed in this columns are of
his own. He may be reached at amit@infobanc.com
) |
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