Not sure how to go about obtaining an export license in India? We’e got you covered! Keep reading to know all you need to know about exporting from India.
Introduction
Embarking on the journey of international trade in India involves navigating through various legal requisites. Among them, obtaining an Export License stands as a crucial step. This blog aims to shed light on essential facts surrounding the Export License in India.
| For entrepreneurs planning to venture into the realm of import-export business, securing an Import-Export License is paramount. |
Export license, also known as the Import Export Code (IEC), is a 10-digit alphanumeric code issued by the Directorate General of Foreign Trade (DGFT), a part of the Ministry of Commerce and Industry. Let’s delve into the intricacies of the export license process, providing a roadmap for aspiring international traders.
Steps to Obtain Import Export License
The process of acquiring an Import Export License involves several steps, ensuring that businesses adhere to legal requirements seamlessly. Let’s walk through the essential steps to obtain an IEC:
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Product Selection and Firm Registration
Choose the specific product category you intend to export, as the IEC is issued based on the chosen product.
Decide on the name of your company, ensuring it ends with “Exports.”
Register your firm if not done already.
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Online Application for IEC
Pay a fee of ₹250 for the IEC application.
Register your company with the nearest airport or seaport through EDC (Export Data Processing and Monitoring) registration.
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Document Collection and Digital Copies
Gather all necessary documents and prepare digital copies before initiating the online application process.
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IEC Online Application Process
Log in to the official DGFT portal and submit the form for registering your firm.
Use your PAN number to create a new IEC application or open an existing one.
Fill in details such as location, PAN details, bank account, establishment date, etc.
Make the online payment of ₹250.
Upload all required documents.
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Submission of Completed IEC Form
After successful document upload and form completion, print the IEC form.
Submit the completed form to the DGFT office located in your region.
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Confirmation and Processing
Receive a confirmation screen with your Ecom Reference number, company name, and the DGFT office where your application is being processed.
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IEC Code Issuance
Within 3 days to a week, you will receive your IEC code upon successful processing.
Documents Required for IEC Application
The documents needed for IEC application vary based on the type of company. Here’s a breakdown for different business structures:
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Proprietorship
Photograph (33)
Identity cards (Voter ID, driving license, passport, or Aadhaar card)
Address proof (utility bill)
Bank certificate or cancelled cheque.
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Partnership
Photograph of managing partner (33)
PAN card of the partnership firm
ID proof (Aadhaar card, passport, driving license)
Address proof (sale deed or lease agreement with a utility bill)
Bank certificate or cancelled cheque.
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LLP and Company (both public and private)
Photographs of directors (33)
PAN card of the applicant of the LLP firm
Certificate of incorporation
ID proof (Aadhaar card, passport, driving license)
Address proof (sale deed or lease agreement with a utility bill)
Bank certificate or cancelled cheque.
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Conclusion
Navigating the intricate process of obtaining an Export License in India is a crucial step for businesses eyeing international trade. Following the outlined steps and ensuring the submission of requisite documents facilitates a seamless application process.
For further assistance or queries, feel free to leave a comment or contact us directly.
FAQs on Export License in India
What is exporting?
Exporting refers to the process of selling goods or services produced in one country to buyers located in another country.
What are the benefits of exporting for Indian businesses?
Exporting can help Indian businesses expand their customer base, increase revenue, and diversify their markets. It can also help them take advantage of economies of scale and access new technologies and resources.
What are the key export markets for Indian businesses?
The key export markets for Indian businesses include the United States, the United Arab Emirates, China, Hong Kong, and Singapore.
What are the most commonly exported products from India?
The most commonly exported products from India include petroleum products, gems and jewellery, pharmaceuticals, textiles, and engineering goods.
What are the legal requirements for exporting from India?
Indian businesses must obtain an Import Export Code (IEC) from the Directorate General of Foreign Trade (DGFT) to export goods from India. They must also comply with various export regulations and obtain necessary licenses and permits.
What are the payment methods for exporting from India?
The most common payment methods for exporting from India include advance payment, letter of credit, and open account.
What are the logistics involved in exporting from India?
Exporting from India involves various logistics such as transportation, packaging, documentation, and customs clearance. Indian businesses can use freight forwarders or logistics companies to handle these logistics.
What are the taxes and duties involved in exporting from India?
Indian businesses must pay various taxes and duties such as Goods and Services Tax (GST), customs duty, and export duty when exporting goods from India.
What are the risks involved in exporting from India?
The risks involved in exporting from India include currency fluctuations, political instability, trade barriers, and cultural differences.
How can Indian businesses get support for exporting?
Indian businesses can get support for exporting from various government agencies such as the DGFT, Export Promotion Councils (EPCs), and the Federation of Indian Export Organizations (FIEO). They can also seek assistance from trade associations and export consultants.
