Registration formalities of export in India


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  • Documents required for IEC Code are as follows: Pancard, passport Size Photo, Adhaar/ Voter card and cancelled cheque. For further assistance, call us @ 9953318433 IMPORT EXPORT CODE/ LICENSE (IEC) IN 1999/-
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  • FOR GETTING IMPORT EXPORT CODE LICENSE (IEC) IN INDIA, CALL US @ +91 9953318433. IEC CODE IN JUST 1999/- IN JUST TWO DAYS. Documents required for IEC Code are as follows: Pancard, passport Size Photo, Adhaar/ Voter card and cancelled cheque. For further assistance, call us @ 9953318433 IMPORT EXPORT CODE/ LICENSE (IEC) IN 1999/-
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Registration formalities of export in India

  1. 1. Lecture By: Sneha Sharma
  2. 2. Selection of Name of Firm Approval to Name of Firm Registration of Organisation Opening of Bank Account Obtaining Permanent Account Number
  3. 3. Registration with Sales Tax Authorities Importer-Exporter Code number Registration cum Membership Certificate Registration with ECGC
  4. 4. Registration under Central Excise Law Registration with other Authorities Registration for Business Identification Number Export Licensing
  5. 5.  Exporter need not pay sales tax while making purchases, meant for export.  For availing the benefit, firm has to register with sales tax authorities and secure sales tax number.  Exporter/purchaser has to give Form-H to the seller/manufacturer. ▪ For this purpose, exporter has to make an application along with copy of letter of credit or export order to the Sales Tax Office that has jurisdiction to his office for issuance of Form-H.  Exporter prepares Form-H, in triplicate, and issues two copies to the seller and retains one copy for his record.
  6. 6.  No export or import transaction can be made without obtaining an importer-exporter code number.  IEC number is a pre-condition for exports from and imports into India.  This code number is made compulsory, now.
  7. 7.  IEC Code is unique 10 digit code issued by DGFT  Full From of IEC Code is :“Importer Exporter Code ”  To import or export in India, IEC Code is mandatory. ▪ No person or entity shall make any Import or Export without IEC Code Number.
  8. 8.  An application for grant of IEC number shall be made by the Registered/Head Office of the applicant and apply to the nearest Regional Authority of Directorate General Foreign Trade,  the Registered office in case of company and Head office in case of others, falls in the ‘Aayaat Niryaat Form ANF2A’ and shall be accompanied by documents prescribed therein.  Only one IEC would be issued against a single PAN number. ▪ Any proprietor can have only one IEC number and in case there are more than one IECs allotted to a proprietor, the same may be surrendered to the Regional Office for cancellation.
  9. 9.  The application can be download Form in PDF or Word.  Along with IEC Code Number Application Form it is necessary to submit Appendix-18B Attested by Applicant's Banker in his letter head with two passport size photo.  Validity of IEC Code No  An IEC number allotted to an applicant shall be valid for all its branches/divisions/units/factories .
  10. 10.  Where an IEC Number is lost or misplaced,  the issuing authority may consider requests for grant of a duplicate copy of IEC number, ▪ if accompanied by an affidavit.  Surrender of IEC Number  If an IEC holder does not wish to operate the allotted IEC number, he may surrender the same by informing the issuing authority. ▪ On receipt of such intimation, the issuing authority shall immediately cancel the same and electronically transmit it to DGFT for onward transmission to the Customs and Regional Authorities.
  11. 11.  Application Fee : Rs 250.00  Mode of Payment  In Demand Draft of any Bank or  Payment through EFT or  Application fee can deposited by TR6 Challan with Duplicate Copy in any branch of Central Bank of India and TR6 Challan need to be submit along with IEC Code Application.  Territorial Jurisdiction of Regional Authorities  Every application, unless otherwise specified, shall be submitted to the Regional Authority of Directorate General Foreign Trade, as per the territorial jurisdiction of the Regional authorities.
  12. 12.  Each Importer/Exporter shall be required to file importer/ exporter profile once with the Regional Authority in Part 1 of ‘Aayaat Niryaat Form - ANF2A’.  Regional Authority shall enter the information furnished in Part 1 of ‘Aayaat Niryaat Form ANF-2A’ in their database so as to dispense with the need for asking the repetitive information. ▪ In case of any change in the information given in Part 1 of ‘Aayaat Niryaat Form ANF-2A’, importer/exporter shall intimate the same to the Regional Authority.
  13. 13.  The following categories of importers or exporters are exempted from obtaining Importer - Exporter Code (IEC) number:  Importers covered by clause 3 (1) [except sub-clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and (k)] of the Foreign Trade (Exemption from application of Rules in certain cases) Order, 1993.  Ministries/Departments of the Central or State Government.  Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture.  Persons importing/exporting goods from/to Nepal provided the CIF value of a single consignment does not exceed Indian Rs.25,000.  Persons importing/exporting goods from/to Myanmar through Indo-Myanmar border areas provided the CIF value of a single consignment does not exceed Indian Rs.25,000.
  14. 14.  However, the exemption from obtaining Importer-Exporter Code (IEC) number shall not be applicable for the export of ▪ Special Chemicals, Organisms, ▪ Materials, Equipments and ▪ Technologies (SCOMET)
  15. 15.  Mandatory Requirements to apply for IEC Code Number      PAN Number Current Bank Account Bankers Certificate IEC Code Number Application Fee : Rs 250.00  The physical application containing required documents should reach DGFT RLA concerned within 15 days of its online submission.  Covering Letter on your company's letter head for issue of new IEC Code Number.  Two copies of the application in prescribed format
  16. 16.  Aayaat Niryaat Form ANF 2A must be submitted to your regional DGFT Office.  Each individual page of the application has to be signed by the applicant. Part 1 & Part 4 has to be filled in by all applicants. In case of applications submitted electronically.  No hard copies of Part 1 may be submitted. However in cases where applications are submitted otherwise, hard copy of Part 1has to be submitted.  Only relevant portions of Part 2 need to be filled in.  Rs 250.00 Bank Receipt (in duplicate)/Demand Draft/EFT details evidencing payment of application fee in terms of Appendix 21B.
  17. 17.     Certificate from the Banker of the applicant firm in the format given in Appendix 18A. Self certified copy of PAN issuing letter or PAN (Permanent Account Number) Card issued by Income Tax Authority. Two copies of passport size photographs of the applicant duly attested by the Banker of the applicant. Self addresses envelope with Rs.25/- postal stamp for delivery of IEC certificate by registered post or challan/DD of Rs.100/- for speed post.
  18. 18.  The Registered/Head office of the applicant shall make an application for grant of IEC number to the Regional office of DGFT (known as Regional Licensing Authority), having territorial jurisdiction over the firm, along with the following documents:     (A) Profile of the exporter/importer (B) Demand draft from a bank for Rs.1,000 as fees (C) Certificate from the banker of the applicant (D) Two copies of passport size photographs of the applicant, duly attested by bank.  (E) If there is any non-resident investment in the applicant firm and such investment is with full repatriation benefit, full particulars of such investment are to be disclosed and approval of RBI for such investment is to be enclosed.  (F) Declaration on applicant’s letterhead that there is no association of the applicant’s firm with caution listed firms.
  19. 19.  There are different Export Promotion Councils such as  Engineering Export Promotion Council,  Chemical Export Promotion Council,  Apparel Export Promotion Council and  Textile Export Promotion Council etc.
  20. 20.  However, if the export product is not covered by any EPC, the concerned Regional Licensing Authority of DGFT can issue RCMC to the exporter.  With the receipt of certificate, the exporter will be known as “Registered Exporter”.  The benefits provided in the current Exim policy are available only to the registered exporters having valid RCMC.
  21. 21.  The exporter should also register with Export Credit and Guarantee Corporation of India (ECGC) in order to secure export payments against political and commercial risks.  It also helps to get financial assistance from commercial banks organisations and other financial
  22. 22.  To encourage and facilitate globalization of India’s trade.  To assist Indian exporters in managing their credit risks by providing timely information on worthiness of the buyers, bankers and the countries.  To protect the Indian exporters against unforeseen losses,  which may arise due to failure of the buyer,  bank or problems faced by the country of the buyer by providing cost effective credit insurance covers in the form of Policy, Factoring and Investment Insurance Services comparable to similar covers available to exporters in other countries.
  23. 23.  To facilitate availability of adequate bank finance to the Indian exporters by providing surety insurance covers for bankers at competitive rates.  To achieve improved performance in terms of profitability, financial and operational efficiency indicators and achieve optimum return on investment.  To develop world class expertise in credit insurance among employees and ensure continuous innovation and achieve the highest customer satisfaction by delivering top quality service.  To educate the customers by continuous publicity and effective marketing.
  24. 24.  Central excise levy is applicable if the following conditions are satisfied: (a) The duty is on the goods (b) The goods must be excisable (c) The goods must be manufactured or produced and (d) The goods must be manufactured and produced in India.
  25. 25.  Every manufacturer/producer of goods has to submit the prescribed application form to the jurisdictional Range officer of the Central Excise  for registration if the total value of the goods cleared for home consumption, known as Domestic turnover, exceeds the exemption limit. ▪ The exemption limit is ▪ Rs. 100 lakhs in case of SSI unit and ▪ Rs. 50 lakhs in case of non-SSI units.
  26. 26.  Once the unit is registered with Central Excise Authority,  they allot Excise Control Code (ECC) Number.  The ECC number is 15 digit code number with the first 10 digits being the same a Permanent Account Number.
  27. 27.  In respect of applicability of excise duty on exports concerned, goods enjoy exemption from duty on the final product, meant for export.  Where exemption is not availed, refund of excise duty paid is made, after actual export.  Secondly, refund of excise duty is made on inputs used in the manufacture of goods, meant for export.
  28. 28.  The exporter has to submit the prescribed form ARE-1, in six tuplicate, to the competent central excise authority for the central excise clearance of the goods.  The procedure for clearance of central excise would be discussed, in detail, in the chapter dealing with “Excise clearance of cargo”.
  29. 29.  It is desirable for the exporters to become members of  local Chamber of Commerce,  Productivity Council or  any other trade promotion organisation recognised by the Ministry of Commerce or Industry.  Local membership helps the exporters in different ways, including in obtaining Certificate of Origin, which is vital for exports to certain countries
  30. 30.  The exporters have to obtain PAN based Business Identification Number (BIN) from the Directorate General of Foreign Trade prior to filing for customs clearance of export goods.
  31. 31.  Purpose of BIN is to bring a common identification number to all persons dealing with various regulatory agencies, such as ▪ the Central Excise and Customs Department, Income Tax Department, Offices of Director General of Foreign Trade etc.  All assesses would be considerably benefited if they have to obtain just one identification number for use by the various Government agencies.
  32. 32. Many items of goods are free for exports without obtaining any licence, if they do not fall in the Negative List.  The Negative list consists of goods the import or export of which is prohibited, restricted through licensing or otherwise canalized.  Part–I : Prohibited Items:  ▪ These items can not be exported or imported. These items include wild life, exotic birds, wood and wood products in the form of logs, timber, pulp and charcoal.
  33. 33.  Part–II : Restricted Items: ▪ These are the items, export or import of which is restricted through licence. They can be imported or exported only in accordance with the regulations governing in this behalf.  Part–III ▪ Canalized Items: Goods, which are canalized, can be imported or exported through the canalizing agency, specified in the Negative List.
  34. 34.  The Director General of Foreign Trade may issue a licence to any other person to import or export those items, which are included in the Negative List.  It is evident from the above, all goods may be exported barring items in the Negative List.  Items in the Negative list can be prohibited items, imported or exported by licence or through the designated canalizing agency or others under special conditions.  So, it is necessary for the exporter to check the nature of the item before he enters into the contract or even makes efforts to secure the export order. Needless to add, the item of export agreed upon should not fall in the banned list.