Import and export are undoubtedly one of the most profitable platforms to perform business activities. Also, it is known to be the safest mode in terms of transaction where the money is secured by both the ends, i.e., the person purchasing or importing the good as well as the one selling or exporting the goods and services to other countries.
Import export procedure in India is easy if you follow certain criteria as it makes procedures easy and well-managed.
In this blog, we have discussed many things like what documents are needed for import procedure in India, the procedure of import and export, documents needed for export procedure in India, and how exactly export and import procedure in India. The reason that prompted us to write this blog is that many people are searching for answers to questions like explain the import and export registration procedure for India.
Starting an import and export business is not a difficult task, but it is necessary to comply with the government rules set by a particular country for a smooth flow of material and transactions.
There are different methods or procedures which are necessary to comply goods from the foreign market or to sell the domestically manufactured products in the foreign market. Let us have a wider look at the Indian EXIM Procedures.
Import And Export Procedure in India
1. Get an Import Export Code (IEC)
The very first and the most important thing to carry your import-export transactions is the registration of an IEC or an Import Export Code. It can be obtained from the DGFT website. The process generally takes around 15 days for obtaining the IEC code.
The website also helps to understand various products or services which can be provided to different countries. It also gives information about the products restricted in a particular country. IEC is the first step of the Import-Export Procedure when a business or firm wants to register itself in the process of buying and selling goods in the international market.
2. Documents Required for an IEC Registration
Obtaining an IEC requires a PAN card, a cancelled cheque and a photograph of the person applying for the license. These are some of the basic documents which should be kept handy while applying for the registration.
Make sure the documents are complete.
3. Ensuring the Legal Compliance for Products
As mentioned above, after obtaining an IEC, a business must comply with the rule mentioned in section 11 of the Customs Act of 1962, Foreign Trade Development and Regulation Act (1992) and also it should comply with the Foreign Trade Policy. It helps in getting an insight into certain products which are allowed and which are restricted to sell or import from other countries.
4. The Harmonized System of Coding (HS Code)
Another major thing which is required is the information about the HS Code or the Harmonized System of Coding when dealing with the Import-Export Procedure. The HS code helps in the identification of a product or service and plays a major role in the import-export process.
It is simply an 8 digit code. Different product or services are categorised under their own harmonised system of the coding which is obtained from the Directorate General of Foreign Trade (DGFT) office.
5. Import License
For starting an import-export business, an importer must be aware of the Import License and procuring it is important for a better understanding of their goods and services. An import license is further categorised into two types:
- A general license
- An individual license
In a general license, a person involved in the process of importing can easily import goods from any country, whereas in the individual or a specific license, the goods or services can be imported from specific countries only. These licenses are used for renewable, clearance of the imported materials.
Just like the imports, a similar process is applied for the business willing to Export. A company needs to need to apply for the export license from the Directorate General of Foreign Trade (or DGFT) office.
It is also needed to register the business at the ICC, known as the Indian Chamber of Commerce mentioning that the products manufactured are of Indian origin, thus allowing easy export of goods and services in the international market.
Documents for the Import-Export Procedure:
In India, there are certain criteria to perform the Export and Import Procedure in a well managed and easier way.
Now, when a company is registered to perform the import and export activities, it has to submit the documents, namely, commercial and regulatory documents.
A commercial document is the one which deals with the exchange of goods and services between a buyer and a seller. According to the Foreign Trade Policy, 2015-2020, following are the documents required under the commercial document category, these are:
- Commercial invoice cum packing bill
- Bill of lading / Airway bill
- Shipping bill or bill of exports
- Bill of entry or bill of imports
On the other side, regulatory documentation deals with the regulatory authorities. The regulatory authorities include all the licensing, customs, excise or the export promotion councils, etc.
Following are the regulatory documents required in the Import-Export Procedure for selling and purchasing of material in the international market, these are:
- GST returns, which includes both the GSTR 1 and GSTR 2
- GSTR refund form
- Bank Realization Certificate
- RCMC or Registration cum Membership Certificate to avail benefits in the form of concessions
Other Import Duties:
Under the new GST laws of the Indian system, basic duty on the imported items is levied as mentioned under the Customs Tariff Act, 1975, along with other duties. Also, an IGST which is an Integrated Goods and Services Tax are levied on the imported goods depending upon the classification of material under the IGST act.
So, to start with, any business owner needs to comply with the above mentioned Import and Export Procedures in India. Apart from this, one must fully study their target market so that they should be having an in-depth knowledge of the goods and services which have a demand in a particular country and vice versa. Good knowledge of the import-export market and the government rules will allow any company to successfully hit the business and earn huge profits.
Where to find the best consultant to get insight knowledge of the various Import Exports Procedure?
If you are looking to make your first break in the international market, then Impexperts is the right place to clear your queries and learn more about the process, documentations and suggestions to easily handle the import-export business, while maximising profits at the same time.
Find out more at https://www.impexperts.com and get connected with our team of experts to master your business skills.