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REGISTRATION

FORMALITIES FOR
EXPORTS

UNIT 1
Registration in India

Exporter need to register with various authorities

Direct or indirect help in smooth conduct of export

trade
REGISTRATION

1) Registration of Organisation

2) Opening Bank Account

3) Obtaining PAN

4) Obtaining Importer-Exporter Code Number (IEC No)

5) Registration with Value Added Tax Authority and Sales Tax


Authority
6) Registration with Export Promotion Council (EPC)

7) Registration with Export Credit and Guarantee Corporation of


India (ECGC)
8) Registration with other authorities
Registration of Organisation

Depending on type of organisation

 A Joint Stock Company – Companies Act, 1956

 A Partnership Firm – Indian Partnership Act, 1932

 A Sole Trader – seek permission from local authorities as required


Opening Bank Account

 Current Account in the name of firm or company

 With commercial bank authorised by RBI to deal in foreign

currency transactions

 All financial transactions through this account

 Bank – source of pre-shipment and post-shipment finance

for the exporters


Obtaining PAN (Permanent Account Number)

Register with Income Tax Authorities

Necessary for obtaining IEC number

Also for claiming exemptions and deductions under


different sections of Income Tax Act
Importer-Exporter Code Number (IEC No)

10 digit code

Mandatory for import as well as export

Until 31st December, 1997 – issued by RBI

From 1st January 1997 – issued by Director General of

Foreign Trade (DGFT), Ministry of Commerce, GOI


Importer-Exporter Code Number (IEC No)

Eligibility & Legal Provisions

No. allotted shall be valid for all its branches/divisions/units/factories

If lost or misplaced, request for duplicate IEC number on submission of an

affidavit

If does not wish to operate, surrender IEC number by informing issuing

authority

Only one IEC no. against single PAN number

Mandatory document to apply – PAN number, Current Bank Account,

Banker’s Certificate
Importer-Exporter Code Number (IEC No)

Application Procedure

New system - Online submission of application

2 options for applying –

1) physical application

2) Online application and physical submission of

copy
PHYSICAL APPLICATION PROCEDURE

 Applicant – registered office in case of JSC, Head Office in case of

proprietorship, partnership concern, HUFs

 ‘Aayaat Niryaat Form – ANF2A’

 To concerned Regional Authority (RA) of DGFT


PHYSICAL APPLICATION PROCEDURE

Documents accompanied

 Covering letter on letter head

 2 copies of application in prescribed format

 Signature of applicant on each page of application

 DD/Bank Receipt/EFT of Rs. 250 as registration fee

 Banker’s certificate in prescribed format


PHYSICAL APPLICATION PROCEDURE

Documents accompanied
 Self Certified copy of PAN issuing letter or PAN card

 2 copies of passport size photographs of applicant duly attested by banker of

the applicant
 Self addresses envelope with Rs. 25 postal stamp for delivery of IEC certificate

by registered post or challan/DD of Rs. 100 for speed post


ONLINE APPLICATION PROCEDURE

 DGFT website http://dgft.gov.in

 Physical application within 15 days of its online submission to DGFT Regional Licensing

Authority

 Payment of Registration Fee

 If by DD, IEC only after receipt of physical copy of application

 If by EFT, IEC no. generates automatically and can be viewed

 After submission of physical copy, Same IEC printed in 24 Hours time and dispatched to

firm
EXEMPTION FOR IEC NUMBER

1. Importers – Clause 3(1) (except sub clause (e) and (l))

2. Exporters - Clause 3(2) (except sub clause (i) and (k))

3. Ministries/Department of the Central or State Govt

4. Persons importing/exporting for consumption purpose


EXEMPTION FOR IEC NUMBER

5. Persons importing/exporting goods from/to Nepal – provided the CIF

value of single consignment not exceeding Indian Rs. 25000/-

6. Persons importing/exporting goods from/to Myanmar border areas -

provided the CIF value of single consignment not exceeding Indian

Rs. 25000/-
EXEMPTION FOR IEC NUMBER

7. Persons importing/exporting goods from/to China through Gunji,

Namgaya Shipkila and Nathula ports – provided the CIF value of

single consignment not exceeding Indian Rs. 25000/- (Nathula – Rs.

1,00,000)

 Exemption not applicable for export of special chemicals, organisms,

materials, equipments and technologies as listed in Appendix 3,

Schedule 2 of ITS (HS)


REGISTRATION WITH VAT AUTHORITY AND ST
AUTHORITY

 Compete exemption for VAT and CST to goods manufactured or

purchased from local market for export purpose

 Provided the registration of firm with VAT authority of state

concerned

 and obtain exemption as per the procedure laid down in the

concerned act
REGISTRATION WITH EXPORT PROMOTION COUNCIL (EPC)

 Obligatory for every exporter

 Registration with appropriate EPC

 Obtain ‘Registration-cum-Membership Certificate’ (RCMC)

 Presently 21 EPCs dealing with various commodities

 Benefits of new FTP 2009-2014 only to registered exporters


REGISTRATION-CUM-MEMBERSHIP CERTIFICATE (RCMC)

 Required by any firm or company

 Applying for any import/export license

 To avail any other concession or benefit

 Validity – 5 years from 1st April of licensing year to 31st March of licensing

year

 De-registration – on the ground of violation of conditions of registration -

first show cause notice – reasonable opportunity against proposed de-

registration
Issuing Authorities of RCMC

 Option for exporter - Federation of Exporters Organisations (FIEO)

or relevant Export Promotion Council (EPC)

 Option for status holder- FIEO

 Export not covered by any EPC –FIEO


Issuing Authorities of RCMC

 Exporters of forest produce – Shellac and Forest Products Export

Promotion Council

 Software exporters – Electronic and Computer Software EPC (ESC)

 Exporters of 14 services – (listed in handbook of procedure) EPC

 Other service exporters - FIEO


APPLICATION FOR RCMC

 Application in specified format for becoming a member of EPC

 Registration as Manufacturer Exporter – need to furnish

evidence to that effect


APPLICATION FOR RCMC

 Documents required

 Application of Registration-cum-Membership

 A self certified copy of IEC number issued by the licensing authorities

concerned

 Bank certificate in support of applicant’s financial soundness

 SSI/IEM certificate in case of registration as Manufacturer Exporter


APPLICATION FOR RCMC

 Documents required

 A declaration regarding exports and imports effected during the preceding

financial year

 A copy of M/A and A/A in case of companies and Partnership Deed in case of

partnership firms
EXPORT LICENSE

 Export items regulated by ITC (HS) classification

 Restricted items permitted under license

 A document issued by the appropriate licensing agency to allow

export

 Issue of license only after careful review of facts related to given

export transactions
EXPORT LICENSE

 Export license – only for Goods mentioned in Schedule 2 of ITC (HS)

classification

 Submission of proper application to DGFT

 Consideration of application by Export Licensing Committee under

the chairmanship of Export Commissioner


EXPORT LICENSE

 DGFT – specifies terms and conditions related to ITC (HS)

classification from time to time

 Examples – Live horses, Rice bran, raw and boiled, Urea, Sand and

Soil, Live cattle, camel, etc.


REGISTRATION WITH ECGC

 Exporters – commercial as well as political risk in international market

 Protection against such risk

 Necessary registration with Export Credit and Guarantee Corporation of

India (ECGC)

 Also helps in obtaining financial assistance from commercial banks and other

financial institutions
REGISTRATION WITH OTHER AUTHORITIES

 Federation of Indian Export Organisation (FIEO)

 Indian Trade Promotional Organisation (ITPO)

 Chambers of Commerce (COC()

 Productivity Councils, etc.

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