How to get Import Export licence and do import export business in India as Exporters India.
Registration of Exporters India. (How to get Import Export licence to do import export business in India)
1. Registration with Reserve Bank of India no more required.
Prior to 1.1.1997, it was compulsory for every exporter India to obtain an exporters’ code number from Reserve Bank of India before engaging into export. This has since been dispensed with and registration with the licensing authorities is sufficient before commencing export or import export.
2. Registration of Exporters India with Regional Authorities of Director General of Foreign Trade (Obtaining Importer-Exporter Code Number)
The Customs Authorities will permit you to import export or export goods into or from India only if you are holding goods to Nepal or to Myanmar through Indo-Myanmar through Indo-Myanmar Border areas or to China through Gunji, Namgaya, Shipkila or Nathula ports, you are not required to obtain IEC ONLINE CODE number provide the CIF value of a single consignment does not exceed Indian Rs. 25000/-
Application for Grant of IEC ONLINE CODE (import and export licence number) Code.
An application for grant of IEC CODE i.e. imports and export licence number shall be made by the Registered/Head Office of the applicant to the Regional Authority (list given in Appendix II) under whose jurisdiction the Registered Office in case of company and Head office in case of others, falls in the ‘Aaayaat Niryaat Form (ANF 2 A) given in Appendix 1 (in duplicate) and shall be accompanied by documents prescribed therein.
In case of STPI/EHTP/BTP units, the Regional Office of the DGFT having jurisdiction over the district in which the Regional / Head Office of the STPI UN it is located shall issue or amend the IECs.
Only one IEC CODE would be issued against a single PAN number. Any proprietor can have only one IEC number and in case there are more than one IEC ONLINE CODE i.e. import and export licence code allotted to a proprietor, the same may be surrendered to the Regional Office for cancellation.
Before applying for IEC CODE number it is necessary to
(i) obtain Permanent Account Number from the Income Tax Authorities and
(ii) open a bank account in the name of your company/firm with any commercial bank authorized to deal in foreign exchange. The procedure of application for IEC CODE No. has been simplified since August 2006.
The new system also allows online submission of the application. An applicant may now choose:-
1) To file on online application and submit a physical copy of the application by taking print out of the online application.
2) To submit the application in physical form directly at the regional DGFT Office.
Process of Online Application how to get import export licence..
i) Applicants can file an on-line application at the DGFT website http://dgft.gov.in online form has been designed to ensure feeding of all the required information by prompting user wherever a field is left blank. Applicant has to submit scanned copies of PAN and bank certificate along with their application.
ii) There are two options for payment of fee (A) If fee is paid by Demand Draft, IEC CODE will be generated only after receipt of the physical copy of the application (B) If IEC CODE application fee is paid through Electronic Fund Transfer facility, IEC CODE number will be generated by the licensing office automatically and the number can be viewed online by the applicant.
iii) On the receipt of physical copy of the application, the same IEC will be printed in 24 hours’ time and dispatched to the firm.
Procedure for Physical Application i.e. how to get import export licence.
The duly signed application form should be supported by the physical documents:
1) Bank Receipt (in duplicate) /Demand Draft/ EFt details evidencing payment of application fee of Rs.1000 (Rs.500 for Electronically filed application ) in terms of Appendix 21 B of the Foreign Trade Handbook of Procedure, April 2007 Ed.
2) Certificate from the banker of the application firm in Part B of the form.
3) Self-certified copy of Permanent Account Number (PAN) issued by Income Tax Authorities.
4) Two copies of passport sixed photographs of the applicant.
5) Photograph on the banker’s certificate should be attested by the banker of the applicant.
6) Self-addressed envelope and stamp of Rs.30.
7) These documents may be kept secured in a file cover.
The Regional Authority concerned shall grant an IEC CODE number to the applicant in the prescribed format. A copy of such IEC ONLINE CODE number shall be endorsed to the concerned format. A copy of such IEC ONLINE CODE number shall be endorsed to the concerned banker.
The number should normally be given within two working days provided the application is complete in all respects and is accompanied by the prescribed documents.
An IEC CODE number allotted to an applicant shall be valid for all its branches/divisions/units/ factories as indicated on the IEC CODE number.
Hints for filling IEC CODE Applications.
1) Application must be made in the prescribed form in duplicate, duly accompanied by Bank Receipt/Demand Draft evidencing payment of fee.
2) Application form should be neatly typed / handwritten in bold capital letter only.
3) Each page of the application form should be signed in ink by the authorized person.
4) Supporting documents in duplicate, duly self-attested as specified earlier in this Chapter must be enclosed wherever applicable.
5) Items of information relevant to applicant should only be filled in and remaining items may be marked ‘not applicable’
6) Two copies of the passport size photograph of the applicant duly attested by the applicant’s banker shall be submitted.
7) Modifications of particulars of the applicant should also be furnished on this form by filling the relevant items.
Duplicate Copy of IEC No.
Where an IEC no. is lost or misplaced the issuing authority may considered request for grant of a duplicate copy of IEC ONLINE CODE number, if accompanied by an affidavit and a fee of Rs.200/-
Surrender of IEC No.
If an IEC ONLINE CODE holder does not wish to operate the allotted IEC ONLINE CODE 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 to DGFT for onward transmission to the Customs and Regional Authorities.
Registration with Export Promotion Councils /Commodity Board / Authorities.
In order to enable you to obtain benefits/concessions under the Foreign Trade Policy.
You are required to register yourself with the concerned Export Promotion Council or Commodity Board or Authority by obtaining registration-cum-membership (RCMC) for this purpose you should apply in the prescribed form given at Appendix III of this link to the Export Promotion Council relating to your main line of Business.
However, A status holder has the option to obtain RCMC from Federation of Indian Exporters India Organisation (EIEO). Exporters India of Drugs and Pharmaceutical shall obtain RCMC from Pharmexcil only.
Exporters of minor forest produce and their value added products shall obtain RCMC from Shellac Export Promotion Council (SHEFEXIL). Software exporters India shall register themselves with Electronic and software Export Promotion Council.
An application for registration should be accompanied by a self-certified copy of Imports exporter-Exporter Code Number issued by the Regional Authority concerned and bank certificate in support of the applicant’s financial soundness, if the applicant is already registered with any other EPC, a copy of RCMC should be furnished.
In case an exporter desires to get registration as a manufacturer exporter, he should furnish evidence to that effect. In the case of manufacturer Exporter, the licensing authority may seek copy of registration with SSI/any other sponsoring authority in addition to the application in the prescribed form.
Membership fee should be paid in the form of cheque /draft after ascertaining the amount from the EPC concerned. Service provider will furnish copy of registration/approval from the concerned authority.
If the application for registration is granted, the EPC or FIEO shall issue the RCMC indicating the status of the applicant as merchant exporter or manufacturer exporter.
Registration with Tax Authorities now applies is GST.
Goods which are to be shipped out of the country for exports are eligible for exemption from both value Added to and Central Sales Tax.
For this purpose, you should get yourself registered with the Value Added Tax Authority of your State after following the procedure prescribed under the value Added Tax Act applicable to your State.
Registration with Central Excise Authorities.
Goods meant for exports are exempt from Central Excise duty. For this purpose the manufacturer and merchant exporters India have two options. Either they can deposit Central excise duty at the time of clearance from factory and later on take refund or avail the procedure for exports of goods without payment of duty.
Obtaining Permanent Account Number (PAN)
Every person whose taxable income exceeds the basic exemption limit during an accounting year, is required to obtain Permanent Account Number (PAN).
Once for ever by making an application in Form 49 A, before 31st May of the assessment year In case the total sales, turnover or gross receipts of the business or profession of the assesse, exceeds or is likely to exceed Rs. 5,00,000/- during an accounting year the application for allotment of PAN should be made before the end of the accounting year.
It is compulsory to apply for PAN, in above cases even though the tax payable is nil.
Further, the following persons are compulsorily required to obtain PAN –
a) Exporters India and importers, who are required to obtain an importer-exporter code.
b) Assesse under the Central Excise Act.
c) Persons issuing Cenvatable invoice under rule 57AE and registered under the Central Excise Rule, 1944;
d) Service-tax assesses;
e) Persons registered under the Central Sales Tax Act, 1956 or the general sales tax law of the appropriate State or Union Territory.
All above topic has been discussed in this import export course