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Best Answer: An export license is a document issued by the appropriate licensing agency after which an exporter
is allowed to transport his product in a foreign market. The license is only issued after a careful review of the facts
surrounding the given export transaction. Export license depends on the nature of goods to be transported as well
as the destination port. So, being an exporter it is necessary to determine whether the product or good to be
exported requires an export license or not. While making the determination one must consider the following
necessary points:
(1) What are you exporting?
(2) Where are you exporting?
(3) Who will receive your item?
(4) What will your items will be used?
Canalisation is an important feature of Export License under which certain goods can be imported only by
designated agencies. For an example, an item like gold, in bulk, can be imported only by specified banks like SBI
and some foreign banks or designated agencies.
To determine whether a license is needed to export a particular commercial product or service, an exporter must
first classify the item by identifying what is called ITC (HS) Classifications. Export license are only issued for the
goods mentioned in the Schedule 2 of ITC (HS) Classifications of Export and Import items. A proper application
can be submitted to the Director General of Foreign Trade (DGFT). The Export Licensing Committee under the
Chairmanship of Export Commissioner considers such applications on merits for issue of export licenses.
For every first time exporter, it is necessary to get registered with the DGFT (Director General of Foreign Trade),
Ministry of Commerce, Government of India.
DGFT provide exporter a unique IEC Number. IEC Number is a ten digits code required for the purpose of export
as well as import. No exporter is allowed to export his good abroad without IEC number.
However, if the goods are exported to Nepal, or to Myanmar through Indo-Myanmar boarder 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.
Application form which is known as "Aayaat Niryaat Form - ANF2A" can also be submitted online at the DGFT
web-site: http://dgft.delhi.nic.in
While submitting an application form for IEC number, an applicant is required to submit his PAN account
number. Only one IEC is issued against a single PAN number. Apart from PAN number, an applicant is also
required to submit his Current Bank Account number and Bankers Certificate.
A amount of Rs 1000/- is required to submit with the application fee. This amount can be submitted in the form of
a Demand Draft or payment through EFT (Electronic Fund Transfer by Nominated Bank by DGFT.
Registered under the Indian Company Act, Export Promotion Councils or EPC is a non-profit organisation for the
promotion of various goods exported from India in international market. EPC works in close association with the
Ministry of Commerce and Industry, Government of India and act as a platform for interaction between the
exporting community and the government.
So, it becomes important for an exporter to obtain a registration c u m membership certificate (RCMC) from the
EPC. An application for registration should be accompanied by a self certified copy of the IEC number.
Membership fee should be paid in the form of cheque or draft after ascertaining the amount from the concerned
EPC.
The RCMC certificate is valid from 1st April of the licensing year in which it was issued and shall be valid for
five years ending 31st March of the licensing year, unless otherwise specified.
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.
Goods exported out of the country are eligible for exemption from both Value Added Tax and Central Sales Tax.
So, to get the benefit of tax exemption it is important for an exporter to get registered with the Tax Authorities.
Finally, you may visit the website or the office of the Director General of Foreign Trade (DGFT), New Delhi or
any of its regional offices at Mumbai, Chennai, Kolkata, New Delhi (CLA), Hyderabad, Ahmedabad, Ludhiana
and Pune for a more detailed and specific answer to your question.
Source(s): 1. http://www.infodriveindia.com/Exim/Guide...
2. http://www.infodriveindia.com/Exim/Guide...
3. http://dgft.delhi.nic.in
What is IEC code and How to obtain Import Export Code number?
I have explained briefly about Import Export Code number under my article - How to set up an export import
firm in India. However, some of the readers need more clarifications about IE code and here, I have included
their doubts about IEC number explain below about Import Export Code number in detail.
What are the documents needed for an Importer Exporter Code application ?
Document are listed below (Please reconfirm with the authorities, as these information can be changed amended
time to time)
1.Bank Receipt / Demand Draft details evidencing payment of application fee of Rs. 1000/-. DD should be in
favour of Zonal JDGFT, New Delhi.
2. Certificate from the Banker of the applicant firm in the format given in Appendix 18 A (Part B).
3. Self-certified copy of Permanent Account Number (PAN) issued by Income Tax Authorities.
4. Two copies of passport size photographs of the applicant. Photograph on the bankers certificate should be
attested by the banker of applicant.
5. Self-addressed envelope duly stamped for Rs.25/- (Amount may differ time to time; you may get exact amount
from issuing authority)
6. These documents may be kept securely in a file cover.
Can Bank Certificate be from any of my current accounts in the same name of firm to apply for IEC number?
No, such bank certificate should be the bank through which you are going to transact your export import
procedures and formalities with foreign buyers.
Why is addressed and stamped envelope required along with application for Import Export Code number?
The letter containing the IEC number is sent to the applicant in such envelope.
Should I need to attest PAN number from any gazette officers/notary while applying for Import Export Code
number?
No, you can self attest the copy of PAN, when applying for IEC code number.
authority)
Is PAN Number / PAN card is essential in IEC? What are the alternatives?
Yes, PAN is mandatory. Photocopy of PAN card has to be submitted along with the application of IEC. If PAN
card is not issued to the applicant then a copy of PAN allotment letter from I.T. Department will also be accepted.
Do I have to show PAN Card for verification in IEC?
No. Only one IEC would be issued against a single PAN number. Any proprietor can have only one IEC number
and in case there are more than one IECs allotted to a proprietor, the same may be surrendered to the Regional
Office for cancellation.
What is the duration of to get an IEC after filing application for Import Export Code number ?
Normally IEC number is issued within a couple of days, if all documents are in order. However, you can expect
IEC number by post within 10 days by mail.
Should I need to register Import Export Code number once again with concerned customs department to do
exports and importer?
No. However, you may cross check and confirm about such electronic transition from DGFT to CUSTOMS
about the details of your Import export code number.
Can IEC data be modified after submission of application through the website?
No, only before submission data can be modified.
Documents requited to be submitted for a foreign national for obtaining IEC (documents needed)?
Board Resolution, Memorandum of Association, copy of Passport are required.
Can I surrender Import Export Code number if I do not wish to operate as Exporter Importer?
Yes, you can surrender such Import Export Code number to the concerned authorities. The issuing authority shall
cancel such IEC and transmit electronically to DGFT and customs authorities.
In case the IEC is received undelivered, what are the documents required for proving the genuineness of the firm?
Information to Post Office, copy of Telephone Bill, Electricity Bill, copy of Rent Deed etc. (any one) is required
to confirm about the genuineness of the address.
Does one need authority letter at the time of submission of application of IEC?
No.
Can a Public Limited Co. / Private Limited Co./ Partnership obtain different IECs for different concerns owned by
it ?
No. However, the name of each concern owned by such a company may be included in the IEC of the firm in
whose name PAN exists, as a branch.
I need to export goods for personal purpose , not related to trade,agriculture or manufacture. Should I need to
obtain Import Export Code number?
No, export of personal purpose not related to trade,agriculture or manufacture is exempted to obtain Import
Export Code number.
I would like to export goods to Nepal with a CIF value of single transaction about INR 20000.00 . Should I need
an Import Export Code number?
No, export to Nepal with CIF value of single transaction below INR 25000 is exempted from obtaining IEC
number. (Please reconfirm the value, which may be amended time to time by government)
I would like to export goods to Nepal with a CIF value of single transaction about INR 20000.00 . Should I need
an Import Export Code number?
No, export to Nepal with CIF value of single transaction below INR 25000 is exempted from obtaining IEC
number. (Please reconfirm the value, which may be amended time to time by government)
I would like to export goods to Nepal with a CIF value of single transaction about INR 20000.00 . Should I need
an Import Export Code number?
No, export to Nepal with CIF value of single transaction below INR 25000 is exempted from obtaining IEC
number. (Please reconfirm the value, which may be amended time to time by government)
I would like to export goods to Nepal with a CIF value of single transaction about INR 20000.00 . Should I need
an Import Export Code number?
No, export to Nepal with CIF value of single transaction below INR 25000 is exempted from obtaining IEC
number. (Please reconfirm the value, which may be amended time to time by government)
I would like to export goods to Nepal with a CIF value of single transaction about INR 20000.00 . Should I need
an Import Export Code number?
No, export to Nepal with CIF value of single transaction below INR 25000 is exempted from obtaining IEC
number. (Please reconfirm the value, which may be amended time to time by government)
I would like to export goods to Nepal with a CIF value of single transaction about INR 20000.00 . Should I need
an Import Export Code number?
No, export to Nepal with CIF value of single transaction below INR 25000 is exempted from obtaining IEC
number. (Please reconfirm the value, which may be amended time to time by government)
I would like to export goods to Nepal with a CIF value of single transaction about INR 20000.00 . Should I
need an Import Export Code number?
No, export to Nepal with CIF value of single transaction below INR 25000 is exempted from
obtaining IEC number. (Please reconfirm the value, which may be amended time to time by
government)
I would like to export goods to Nepal with a CIF value of single transaction about INR 20000.00 . Should I
need an Import Export Code number?
No, export to Nepal with CIF value of single transaction below INR 25000 is exempted from
obtaining IEC number. (Please reconfirm the value, which may be amended time to time by
government)
I would like to export goods to Nepal with a CIF value of single transaction about INR 20000.00 . Should I need
an Import Export Code number?
No, export to Nepal with CIF value of single transaction below INR 25000 is exempted from obtaining IEC
number. (Please reconfirm the value, which may be amended time to time by government)
I would like to export goods to Nepal with a CIF value of single transaction about INR 20000.00 . Should I need
an Import Export Code number?
No, export to Nepal with CIF value of single transaction below INR 25000 is exempted from obtaining IEC
number. (Please reconfirm the value, which may be amended time to time by government)
I would like to export goods to Nepal with a CIF value of single transaction about INR 20000.00 . Should I need
an Import Export Code number?
No, export to Nepal with CIF value of single transaction below INR 25000 is exempted from obtaining IEC
number. (Please reconfirm the value, which may be amended time to time by government)
i would like to export goods to nepal with a cif value of single transaction about inr 20000.00 . should i need an
import export code number?
no, export to nepal with cif value of single transaction below inr 25000 is exempted from obtaining iec number.
(please reconfirm the value, which may be amended time to time by government)
DGFT