What Is An Import-Export License?
When considering importing or exporting from India, one of the requirements is an IEC (Import Export Code) license. It also goes by the name Importer-Exporter Code. Anyone wishing to begin their import/export firm in the nation must get an IEC (Import Export Code).
Import-Export License Documents List
Governmental entities can legally send items usually forbidden when they grant registered corporations or individuals with import-export licenses. Learn what kinds of things are prohibited and what export license requirements are mandatory to comply. Also, how to submit an export license application online on the website.
Learn what is forbidden and what documents are needed to comply with import-export license requirements.
1. The Bill Of Lading, commonly known as B/L, is a legal document that the Carrier or its representative issues to the shipper of goods as a contract for the carriage of goods. Additionally, it serves as a receipt for goods approved for delivery. It must be shown to receive the items at the destination.
2. Packing List And Commercial Invoice– The packing list is delivered to the consignee, who will receive the products, whereas the commercial invoice is given to the person who will pay for them. These could be distinct or the same.
3. Shipping Bill – The details of the shipments that are being exported are contained in the “Shipping Bill (SB).” Customs processing is required for every export. The SB includes information about the products that will be exported, as well as the tariffs and taxes that will apply to the exported commodities and related fees for this export, including freight, insurance, and commission.
4. Bill Of Entry – Upon or before the arrival of imported goods, importers or customs clearance agents must file a bill of entry, a legal document. The customs clearance process includes submitting it to the Customs department. The importer will then be entitled to submit an ITC claim for the products after this is completed
Fees For Import-Export Licenses
According to the most recent notification, IEC code Application fees is Rs 500 and can be paid online with e-wallets, Net Banking, credit, or debit cards. Therefore, the government or official fee to obtain an IEC code in India is Rs. 500.
For applications for import and export, the government levies import-export license costs of Rs 500. Your own IEC can be created by visiting the DGFT website and paying the Rs 500 application fee.
However, submitting an IEC application requires you to have at least “Class 2” DSC. Between Rs 1200 and Rs 2000 is what class 2 DSC costs. Thus, the import-export license cost ranges from Rs. 1700 to Rs. 2500.
However, if you decide to do it through an agent, the commission will range from Rs. 500 to 4000 Rs.
In that case, the import-export license cost in India reaches Rs. 4000.
It is advised for one to visit the DGFT website, complete the application independently, and pay Rs 500. You must attach all the documents required for the import-export license and pay the import-export license cost in India.
Get An Import-Export License
If the Department of Commerce’s regulations say that you require a license to export your goods, you must apply for one through the department’s website.
Each nation you intend to export to requires an import license, which you must get. Various procedures apply, but you can obtain assistance by retaining legal counsel in that nation or contacting its embassy or consulate office.
It’s crucial to understand how to obtain an import-export business license in India if you want to operate a company that has to import or export items.
Get An Import-Export License In India
The procedure for import-export licenses may vary from nation to nation. If you want a permit, you must follow the export license procedure. You need to follow the steps and make sure to go through the export license application.
The Foreign Trade (Development & Regulation) Act of 1992 and India’s Export-Import (EXIM) Policy oversee the import and export systems in India.
All commodities, except those covered by the EXIM policy or other current laws, may be imported or exported without charge. Before importing and exporting goods, one must register with the regional licensing authority. Without an Import Export Code (IEC) from the provincial government, the customs will not permit the clearance of goods.
The Food Safety and Standards Authority of India, or FSSAI, is a self-governing organization created by the Food Safety & Standards Act of 2006 and the Ministry of Health & Family Welfare.
For exporting food goods from India to any other country, FSSAI’s license is required. The FSSAI, a regulatory organization under the Health Ministry, authorizes exporters of food items to engage in their export business.
Apply For An Import-Export License
An IEC is required for anyone wishing to launch an import/export company in the nation (Import Export Code). Its DGFT is responsible for issuing it (Director General of Foreign Trade). You need to follow the steps below if you want an import-export license in India.
- Step 1: Go to the DGFT website.
- Select the ‘Services’ tab on the home page.
- From the drop-down list, choose ‘IEC Profile Management.’
- There will be a new page loaded where you must select “Apply for IEC.”
- Choose “Register” from the menu. Click on the “Send OTP” button after entering the necessary information.
- After providing the OTP, press the “Register” button.
- When the OTP is successfully validated, you will receive a notice with the temporary password, which you can modify once you’ve logged into the DGFT website.
- Login to the website using your user name and password after enrolling on the DGFT website.
- Apply for IEC on the DGFT website.
- Click the “Submit and Generate IEC Certificate” button when you have completed the application form (in ANF 2A format), upload the necessary paperwork, and make the required payment.
The DGFT will produce the IEC code. Once the IEC code is generated, you can print your certificate.
What Is An Advance License For Export?
A duty-free importation program known as an advance authorization scheme enables the incorporation of inputs into export products (making a standard allowance for wastage). Additionally, it is permitted to use and consume fuel, oil, energy, and catalysts used to produce an exportable good.
The DGFT (Director General of Foreign Trade) is the authorized body that gives IEC a 10-digit code with lifetime validity.
Use the DGFT website to apply for an import-export license. You must follow the entire procedure on the DGFT website. The DGFT website has a form for the online application process. The applicant must navigate to the “Services” section of the homepage and then click “Online ECOM Application,” where they must choose “Restricted Item Import License/Restricted Export Item.”
Digital Photograph (3x3cms) of the Managing Partner, Copy of Passport Voter’s I-Card /UID (Aadhar Card) /Driving Licence/PAN (any one of these) of the Managing Partner signing the application, Copy of Partnership Deed, shipping bill, bill of entry, Packing List and Commercial Invoice and bill of lading.
IEC code application fees are Rs 500 and can be paid online with credit or debit cards, e-wallets, or net banking. So, in India, the government price or official fee to obtain an IEC code is Rs. 500. Consequently, Rs. 500 is the government or the official charge to receive an IEC code in India.
Sales of export incentives licenses like MEIS, SEIS, and IEIS are under heading 4907 and are subject to a 12 percent GST rate.
Any items on this ITC-HS list that are categorized as “restricted products” must have an export license to be exported. Except for limited or prohibited products, all products are considered exportable under the Foreign Trade Policy (FTP).
The license duration is renewable, and the import licenses are valid for 24 months for capital items and 18 months for raw materials, components, consumables, and spares.