Export Procedure

EXPORT PROCEDURE • Registration with Director General of Foreign Trade (DGFT) •   Registration with Export Promotion Council •   Registration with Commodity Boards •   Registration with Income Tax Authorities

• Registration with Director General of Foreign Trade (DGFT) Ministry of commerce, Govt. of India 

DGFT provide exporter a unique IEC Number. IEC Number is a ten digits code required for the purpose of export as well as import. No exporter is allowed to export his good abroad without IEC number.

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• Registration with Export Promotion Council 

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It becomes important for an exporter to obtain a registration cum membership certificate (RCMC) from the EPC. An application for registration should be accompanied by a self certified copy of the IEC number.

• Registration with Commodity Boards 

Commodity Board is registered agency designated by the Ministry of Commerce, Government of India for purposes of export-promotion. At present, there are five statutory Commodity Boards under the Department of Commerce. These Boards are responsible for production, development and export of tea, coffee, rubber, spices and tobacco.

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• Registration with Income Tax Authorities 

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Goods exported out of the country are eligible for exemption from both Value Added Tax and Central Sales Tax. So, to get the benefit of tax exemption it is important for an exporter to get registered with the Tax Authorities.

Export License. • An export license is a document issued by the appropriate licensing agency after which an exporter is allowed to transport his product in a foreign market. Export license depends on the nature of goods to be transported as well as the destination port. So, being an exporter it is necessary to determine whether the product or good to be exported requires an export license or not. While making the determination one must consider the following necessary points: •  What are you exporting? • Where are you exporting? • Who will receive your item? • What will your items will be used? •

• Canalisation 

Canalisation is an important feature of Export License under which certain goods can be imported only by designated agencies. For an example, an item like gold, in bulk, can be imported only by specified banks like SBI and some foreign banks or designated agencies.

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• Application for an Export License 

To determine whether a license is needed to export a particular commercial product or service, an exporter must first classify the item by identifying what is called ITC (HS) Classifications. Export license are only issued for the goods mentioned in the Schedule 2 of ITC (HS) Classifications of Export and Import items. A proper application can be submitted to the Director General of Foreign Trade (DGFT). The Export Licensing Committee under the Chairmanship of Export Commissioner considers such applications on merits for issue of export licenses.

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• Exports Free unless regulated 

The Director General of Foreign Trade (DGFT) from time to time specifies through a public notice according to which any goods, not included in the ITC