Exempted Categories and Restricted Items: IEC Code

Last Updated at: June 09, 2020
301
Exempted Categories and Restricted Items_ IEC Code
  1. What is an IEC Code?

  2. Who issues it?

  3. IEC Sample

  4. Exempted categories

  5. Restricted Items

What is an IEC Code?

Import Export License enables an individual or an entity to carry out Import or export business to and from India. Without the license, the exporter cannot avail of the benefit of export schemes. Moreover, the merchant cannot get the International transaction through a Financial Institution. Further, for customs clearance of goods, IEC Code is a must. It’s a prerequisite for international business, which helps not only in the balancing of resources across countries but also in the growth of national economies. Therefore, the Import-Export License is issued as a ten-digit code, popularly known as Import Export Code (IEC)

Who issues it?

IEC is issued by the office of Director General Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India, on receipt of ‘Import Export License online application’ along with requisite documents and prescribed fee. Additionally, Digital Signature is to file an online application. Further, IEC, once issued, has lifelong validity, not requiring renewal. Therefore, it is valid for all units/divisions/factories. One IEC Number can issue against one PAN.

IEC Sample

IEC Sample

Exempted Categories

  • Import/export of goods for personal use.
  • Import/ Export by Government and notified charitable organizations.
  • Import/Export of goods to and from Nepal or Myanmar, where CIF value does not exceed Rs. 25000/
  • It does not apply to Technology and services if the equipment does not fall on the restricted list.

Restricted/Canalized/Prohibited items

The Restricted items (as classified in ITC [HS]) can be imported only after obtaining an Import license from the relevant Regional Licensing authority. The goods to import under such permits can dispose that mentions in the permit. Additionally, Form no ANF2B (subsequently modify to ANF 2M w.e.f.18th March’2019) is the application form for Import of Restrict items from DGFT.

Moreover, canalized items such as petroleum products, bulk agriculture products can import only through Canalizing Agencies.

Moreover, the items with prohibition, that lists in ITC (HS), is strictly forbidden on all import channels in India.

Export of Restricted/Prohibited/State Trading Enterprise:

For exporting goods with restrictions, a license can obtain explicit permission. Additionally, the procedure that mentions in the permit for the Export of such products has to strictly comply with.

Moreover, there is a complete ban on the export of prohibited goods, such as wild animals, animal articles, etc.

GET Import-export code

Further, certain items can export only through state trading enterprises, under the provisions that specify in the EXIM policy.

Grant of Licence/Certificate/Permission for Export of goods in the categories that mentions here is by DGFT, which may, in turn, take the advice of representatives of Technical Authorities and Departments/ Ministries concern.

Import and Export Procedure

The first and foremost requirement is to obtain IEC. 

For Exporter:

After shipment, the following documents are to be submitted.

  • Proforma Invoice/ Commercial Invoice: 

Import and Export Procedure

  • Sale-purchase contract.
  • Non- Disclosure Agreement (NDA): It sets penalties for signatories to the agreement.
  • Packing list (PL): 

packing list

  • Bill of lading/ Airway bill (title to the goods)
  • Certificate of origin: Meant for customs authorities. The exporter needs to register with the Indian Chamber of Commerce (ICC).

Indian Chamber of Commerce (ICC)

Other relevant Regulatory Documents include GST return / Refund form; Exchange control Declaration, Bank realization Certificate, Registration cum Membership Certificate (RCMC) for availing Export benefits. 

Regulatory authority

  • Foreign trade (development and regulation) Act, 1992 is the regulator for imports and exports in India, international trade policy 2015-20  lays down the current provisions relating to Exports and Imports in India.

IMPORTS

  • Moreover, the goods to import must comply with Section 11 of the customs Act, Foreign Trade (Development and Regulation) Act, and Foreign Trade Policy 2015-20. 
  • Additionally, certain prohibited, restricted, and canalized items require additional permission and Licenses from DGFT and Government.
  • Further, identification needs under Indian Trading Classification based on harmonized system (ITC {HS}) is necessary to understand the regulations to follow for those goods.

Import Procedures

  • Applicable duties include Customs duty (as per the ‘Customs Tariff Act, 1975), anti-dumping, safeguard duty, social welfare surcharge, and IGST.

Thus prescribed Import and Export procedure is to be complied with, strictly, to carry out a hassle-free Import and Export trade. Additionally, clear cut guidelines lay down in various applicable acts, and non- compliance thereof leads to avoidable complications. Therefore, in such circumstances, the cargo may at the stuck port of the other country and may attract demurrage.

 

0

Exempted Categories and Restricted Items: IEC Code

301
  1. What is an IEC Code?

  2. Who issues it?

  3. IEC Sample

  4. Exempted categories

  5. Restricted Items

What is an IEC Code?

Import Export License enables an individual or an entity to carry out Import or export business to and from India. Without the license, the exporter cannot avail of the benefit of export schemes. Moreover, the merchant cannot get the International transaction through a Financial Institution. Further, for customs clearance of goods, IEC Code is a must. It’s a prerequisite for international business, which helps not only in the balancing of resources across countries but also in the growth of national economies. Therefore, the Import-Export License is issued as a ten-digit code, popularly known as Import Export Code (IEC)

Who issues it?

IEC is issued by the office of Director General Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India, on receipt of ‘Import Export License online application’ along with requisite documents and prescribed fee. Additionally, Digital Signature is to file an online application. Further, IEC, once issued, has lifelong validity, not requiring renewal. Therefore, it is valid for all units/divisions/factories. One IEC Number can issue against one PAN.

IEC Sample

IEC Sample

Exempted Categories

  • Import/export of goods for personal use.
  • Import/ Export by Government and notified charitable organizations.
  • Import/Export of goods to and from Nepal or Myanmar, where CIF value does not exceed Rs. 25000/
  • It does not apply to Technology and services if the equipment does not fall on the restricted list.

Restricted/Canalized/Prohibited items

The Restricted items (as classified in ITC [HS]) can be imported only after obtaining an Import license from the relevant Regional Licensing authority. The goods to import under such permits can dispose that mentions in the permit. Additionally, Form no ANF2B (subsequently modify to ANF 2M w.e.f.18th March’2019) is the application form for Import of Restrict items from DGFT.

Moreover, canalized items such as petroleum products, bulk agriculture products can import only through Canalizing Agencies.

Moreover, the items with prohibition, that lists in ITC (HS), is strictly forbidden on all import channels in India.

Export of Restricted/Prohibited/State Trading Enterprise:

For exporting goods with restrictions, a license can obtain explicit permission. Additionally, the procedure that mentions in the permit for the Export of such products has to strictly comply with.

Moreover, there is a complete ban on the export of prohibited goods, such as wild animals, animal articles, etc.

GET Import-export code

Further, certain items can export only through state trading enterprises, under the provisions that specify in the EXIM policy.

Grant of Licence/Certificate/Permission for Export of goods in the categories that mentions here is by DGFT, which may, in turn, take the advice of representatives of Technical Authorities and Departments/ Ministries concern.

Import and Export Procedure

The first and foremost requirement is to obtain IEC. 

For Exporter:

After shipment, the following documents are to be submitted.

  • Proforma Invoice/ Commercial Invoice: 

Import and Export Procedure

  • Sale-purchase contract.
  • Non- Disclosure Agreement (NDA): It sets penalties for signatories to the agreement.
  • Packing list (PL): 

packing list

  • Bill of lading/ Airway bill (title to the goods)
  • Certificate of origin: Meant for customs authorities. The exporter needs to register with the Indian Chamber of Commerce (ICC).

Indian Chamber of Commerce (ICC)

Other relevant Regulatory Documents include GST return / Refund form; Exchange control Declaration, Bank realization Certificate, Registration cum Membership Certificate (RCMC) for availing Export benefits. 

Regulatory authority

  • Foreign trade (development and regulation) Act, 1992 is the regulator for imports and exports in India, international trade policy 2015-20  lays down the current provisions relating to Exports and Imports in India.

IMPORTS

  • Moreover, the goods to import must comply with Section 11 of the customs Act, Foreign Trade (Development and Regulation) Act, and Foreign Trade Policy 2015-20. 
  • Additionally, certain prohibited, restricted, and canalized items require additional permission and Licenses from DGFT and Government.
  • Further, identification needs under Indian Trading Classification based on harmonized system (ITC {HS}) is necessary to understand the regulations to follow for those goods.

Import Procedures

  • Applicable duties include Customs duty (as per the ‘Customs Tariff Act, 1975), anti-dumping, safeguard duty, social welfare surcharge, and IGST.

Thus prescribed Import and Export procedure is to be complied with, strictly, to carry out a hassle-free Import and Export trade. Additionally, clear cut guidelines lay down in various applicable acts, and non- compliance thereof leads to avoidable complications. Therefore, in such circumstances, the cargo may at the stuck port of the other country and may attract demurrage.

 

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