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Export Import Registration

Export from India requires special documentation depending upon the type of product and destination to be exported. These documents not only give details about the product and its destination port but are also used for the purpose of taxation and quality control inspection certification. In this blog, we will look into the documents required to export goods in general:

Please note, the list is an extensive one, some documents are applicable to a specific category of goods.

  1. Shipping Bill: This is the main document required by the Customs Authority for allowing shipment. A shipping bill is issued by the shipping agent and represents some kind of certificate for all parties, including ship’s owner, seller, buyer and some other parties.
  2. Customs Declaration Form: It is prescribed by the Universal Postal Union (UPU) to be prepared in quadruplicate and signed by the sender.
  3. Dispatch Note: It is filled by the exporter to specify the action to be taken by the postal department at the destination in case the address is non-traceable or the parcel is refused to be accepted.
  4. Commercial Invoice: Issued by the exporter for the full realizable amount of goods as per trade terms. 
  5. Consular Invoice: It is prepared in the prescribed format and is signed/ certified by the counsel of the importing country located in the country of export. 
  6. Customs Invoice: Mainly needed for countries like USA, Canada, etc. It is prepared on a special form presented by the Customs authorities of the importing country. It facilitates entry of goods in the importing country at preferential tariff rate.
  7. Legalized Invoice: This shows the seller’s genuineness before the appropriate consulate/chamber of commerce/embassy.
  8. Certified Invoice: It is required when the exporter needs to certify on the invoice that the goods are of a particular origin or manufactured/ packed at a particular place and in accordance with the specific contract.
  9. Packing List: It shows the details of goods contained in each parcel/shipment.
  10. Certificate of Inspection: It is a type of document describing the condition of goods and confirming that they have been inspected.
  11. Black List Certificate: It is required for countries which have strained political relation. It certifies that the ship or the aircraft carrying the goods has not touched those country(s).
  12. Certificate of Chemical Analysis: It is required to ensure the quality and grade of certain items such as metallic ores, pigments, etc.
  13. Certificate of Shipment: It signifies that a certain lot of goods have been shipped.
  14. Health/ Veterinary/ Sanitary Certification: Required for export of foodstuffs, marine products, hides, livestock etc. 
  15. Certificate of Conditioning: It is issued by the competent office to certify compliance of humidity factor, dry weight, etc.
  16. Antiquity Measurement: It is issued by Archaeological Survey of India in case of antiques.
  17. Shipping Order: Issued by the Shipping (Conference) Line which intimates the exporter about the reservation of space of shipment of cargo through the specific vessel from a specified port and on a specified date.
  18. Cart/ Lorry Ticket: It is prepared for admittance of the cargo through the port gate and includes the shipper’s name, cart/ lorry No., marks on packages, quantity, etc. 
  19. Shut Out Advice: It is a statement of packages which are shut out by a ship and is prepared by the concerned shed and is sent to the exporter. 
  20. Short Shipment Form: It is an application to the customs authorities at a port which advises short shipment of goods and required for claiming the return.

 

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Export Import Registration, Start up Lessons

The Foreign Trade (Development and Regulation) Act 1992, defines export as “taking out of India any goods by land, sea or air

 

Export is completed once the goods have left the territorial water of India. In order to qualify as a transaction of export, the following conditions must be satisfied:

  • Goods must go out of India
  • The foreign exchange must come into India.

 

Exports are beneficial for a country as they bring in profit; promote economic development and overall growth. For this reason, the government of a country always promotes exports.

To operate the business, an entrepreneur needs to form an organization which can be a sole proprietorship, partnership firm under the Indian Partnership Act, a public limited company or a private limited company registered under the Companies Act, 2013 or even a Limited Liability Partnership.

The most recommended course is to get registered as a private limited company since it offers many benefits such as limited liability protection for promoters, transferability, easy access to bank loans, etc. Furthermore, clients always prefer dealing with a registered corporate entity.

 

There are a few registrations that are to be done on a mandatory basis to start exporting, these are:

  1. Registration with Director General of Foreign Trade (DGFT): DGFT provides the exporter with a unique Import-Export Code (IEC), a ten digit code required for the purpose of export as well as import. No exporter is allowed to export his goods abroad without IEC number. It is a one-time registration, valid for the lifetime of the organization or proprietor.


However, if the goods are exported to Nepal or Myanmar through Indo-Myanmar border or to China through Gunji, Namgaya, Shipkila or Nathula ports then it is not necessary to obtain IEC number provided the CIF value of a single consignment does not exceed Indian amount of Rs. 25, 000 /-.


Application for IEC number can be submitted to the nearest regional authority of DGFT or “Aayaat Niryaat Form – ANF2A” can also be submitted online at the DGFT website: http://dgft.gov.in. Along with the form, the applicant is required to submit his PAN number, Current Bank Account number, and Bankers Certificate. An application fee is also required to be submitted.

 

  1. Registration with Export Promotion Council: EPC is a non-profit organization for the promotion of various goods exported from India in international market. It acts as a platform for interaction between the exporting community and the government.

An exporter must obtain a registration cum membership certificate (RCMC) from the EPC. For this, an application accompanied with a self-certified copy of the IEC number should be submitted. The RCMC certificate is valid from 1st April of the licensing year in which it is issued and shall be valid for five years ending 31st March of the licensing year, unless otherwise specified.

 

  1. Registration with Commodity Boards: Commodity Board is registered agency designated by the Ministry of Commerce, Government of India for purposes of export-promotion and has offices in India and abroad. 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.

 

  1. Registration with Tax Authorities: Goods exported out of the country are eligible for tax exemptions. To avail this benefit, an exporter must be registered with the Tax Authorities.

 

  1. Registration with Central Excise Department: If the items are excisable goods, registration with the Central Excise department is required.

 

  1. Registration according to Route of Export: If export is going to be carried out through the sea, registration/membership with the seaport customs is required and in case of export carried out through the air, registration with airport customs is necessary.

 

In case you need any help with these compliance works, do let us know, I am sure, we could work out an attractive package for you, just for you 🙂

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Export Import Registration

Continuous ranking of India at the bottom 10% in the ‘Ease of Doing Business’ report was a challenge that the Government took. Precisely speaking, India ranked 126 in ‘Trading Across Borders” component of “Ease of Doing Business”, out of 189 countries ranked by the World Bank, in its 2015 Report.

We as a nation are working towards positive change, and this blog will give you a real-life example of how the RBI, The Department of Commerce had set up an Inter-Ministerial Committee, The Directorate General of Foreign Trade (DGFT) and other representative departments took an initiative to tackle it out strategically.

The ranking under ‘Trading Across Borders” component of “Ease of Doing Business”, out of 189 countries ranked by the World Bank, in its 2015 Report invited immediate actions, reason being with India aiming to become big as Startup India and ‘Make in India’ it was essential for the government to start by removing glitches.

The first glitch that was resolved – Documents verified during Export and Import.

Previously the scenario was:                                                                                                                                                                                    

 

Now, to make things much simpler:

Only documents highlighted in green are mandatory.

Now, to make things much simpler: Only documents highlighted in green are mandatory.

 

The reduction in the number of mandatory documents leads to the corresponding reduction in Transaction cost and time.  It is expected that this step would not only facilitate the ‘Ease of Doing Business’ in respect of ‘Trading across Borders’ but also improve India’s ranking on this parameter and encourage Startups to involve in the Global business expansion.

Your Wazzeer is built on nationwide well established professional network, handling A2Z  of any legal or accounting or compliance works that any business would have to deal with as it grows. We would be happy to help you out while you focus on the core business. I think you and we should hustle together as a strong team!

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Agreements, Export Import Registration, Uncategorized
Importer Exporter Code (IEC) is mandatory for anyone who is Importing in India or exporting out of India. IEC Code is a unique 10 digit code that would be issued Director General of Foreign Trade, Ministry of Commerce, Government of India. No person would be allowed to import or export anything without IEC Code Number.  This article will walk you quickly through the registration process for Import Export Code.

The procedure of Acquiring Importer Exporter Code Firstly an Authorized Employee from the Company, in person, needs to go to the office and fill the application form or it can be sent through Post/Courier. On receiving the application, an acknowledgment will be generated in form of a receipt having File Number. This file number can be used at the time of any query regarding the application submitted. The application is then sent to IEC section where it is processed. IES is generated if the application is found to be complete as per the prescribed requirements). If not then a deficiency letter is generated stating the reason for deficiency and sent to the applicant. Replies are awaited in cases where deficiency letter is issued and after due compliance by the applicant, the IEC is allotted.  

Documents Required:
  • MoA, AoA and Certificate of Incorporation
  • List of Directors with residential address, Pin Code, Phone Number on letterhead
  • List of Directors of Company Letterhead
  • PAN card of Director
  • Covering Letter in Company Letterhead
  • Bank statement of the Company
  • 4 photographs of signing authority
  • Type of Exporter (Merchant/ Manufacturer/ Service/ Others/ Merchant cum Manufacturer)

Wazzeer is vouched by Entrepreneurs as the most reliable Legal and Accounting Partner. We would be super excited to see your startup kick starts seamlessly. Let’s Connect! 🙂 
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