Companies importing and exporting goods in India must be aware of the trading regulation. Goods sold from India go through different stages. Various stakeholders are involved in the process who participate in the selling and buying.
Additionally, necessary documents are required to qualify for the sale or buying of goods in the international market. Essential documents authenticate the person and business. It ensures the company participates in the trading of the goods. It shows the company is reliable in dealing in the global market and follows import procedure.
Import export procedure
Before you sell or purchase goods from the market, you must fulfill the basic norms to present your company as a merchant. Read the process of import and export and start trading goods.
Here is the outline of import export process
1) Get the IEC number
Every business that deals in the international market have to obtain the Import Export Code (IEC) number from the Government authority. It is registered under the regional DGFT office. The IEC authenticates the trader and its presence. Also, the number is directly linked to the PAN number of the company. IEC is required to clear the goods imported or exported by the customs. Besides that, you have to provide an IEC number to receive or send money through foreign currency.
2) Legal compliance
After IEC is allotted to the company, the business can start trading the goods in the international market under Section 11 of the Customs act (1962). However, a company dealing in the overseas market should keep an eye on policy changes, restrictions on the specific goods, tax benefits, and prohibitions, if any, declared by the government. The company must adhere to the country’s legal compliances and import export procedure.
3) Import licenses
Some commercial products or services require special permission to import the goods. Importing companies must submit the product information to identify the goods imported from the other country. These products should be classified based on the Harmonized System of Coding or ITC (HS) classification.
After knowing the import export procedure, you can start dealing in the international market and elevate your business.