registration formalities

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


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


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


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


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

http://dgft.gov.in/

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


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/-


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

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

Issuing Authorities of RCMC

APPLICATION FOR RCMC

Application in specified format for becoming a member of EPC

Registration as Manufacturer Exporter – need to furnish

evidence to that effect


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


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.

registration formalities

Documents

Transcript of registration formalities