Export and import are two of the most lucrative ways to do business. It is also known to be one of the most secure transactions, where both the buyer or seller of the goods or services and the exporter or importer are able to access the money. It is simple to import-export in India if you adhere to certain criteria.
There are many topics to be covered, including what documents are required for India’s import process, how India imports and exports, as well as the procedures involved in each. We wrote this blog because many people are looking for answers to questions such as how to register for India’s imports and export.
It is easy to start an import or export business. However, it is important to follow the rules of each country in order for material flow and transactions to be smooth.
Different methods and procedures are required to import goods from abroad or sell domestically made products on foreign markets. Let’s take a closer look at Indian EXIM Procedures.
Here’s the procedure of Import and Export business in India:
1. Get an Import Export Code.
An Import Export Code (or an IEC) is the first and most important thing you need to have your import-export transactions recorded. The DGFT website can provide the information. The IEC code is generally obtained in around 15 days.
This website can also be used to help you understand the different products and services that are available to different countries. The website also contains information about products that are not allowed in certain countries. When a business or company wants to be registered in the buying and selling of goods on an international market, the IEC is the first step in the Import-Export procedure.
2. IEC Registration Documents
An IEC is only possible if you have a PAN Card, a canceled bank cheque, and a photo of your applicant. These are just a few of the documents you need to have handy when you apply for registration. You must ensure that the documents are accurate.
3. Assuring Product Legal Compliance
As stated above, the IEC must be obtained by a business that follows the Foreign Trade Policy and Section 11 of the Customs Act of 1962. It allows for a better understanding of which products are allowed to be imported from other countries and which are prohibited.
4. The Harmonized System of Coding (HS Code).
Information about the HS Code (or the Harmonized System of Coding) is also required when dealing with the Import-Export Procedure. The HS code is important in the identification and export of products or services.
It is simply an 8-digit code. Different products and services are classified under their own harmonized coding system, which is available from the Directorate General of Foreign Trade.
5. License for import
Importers must know the Import License before they can start an import-export enterprise. This is necessary to have a better understanding of their products and services. The Import License can be further divided into two types.
- A general license
- Individual license
General licenses allow anyone to import goods from any country. Individual or specific licenses permit only specific goods and services to be imported. These licenses are for the renewal and clearance of imported materials.
Similar to the process used for imports, the same applies to exports. An export license must be applied for by the Directorate General of Foreign Trade office.
Also, it is necessary to register the company at the ICC, also known as the Indian Chamber of Commerce. It must mention that the products being manufactured are of Indian origin. This will allow easy export of goods and/or services to the international markets.
Documents needed for the Import/Export Procedure
India has specific requirements to manage the Export and import procedures in an efficient and easy way.
If a company has been registered to carry out import or export activities, it will need to submit documents, such as commercial and regulatory documentation.
A commercial document is one that deals in the exchange of goods or services between buyers and sellers. These are the required documents under the category of the commercial document according to the Foreign Trade Policy (2015-2020).
- Packing bill for commercial invoice
- Bill of lading/Airway bill
- Shipping bill, or bill of exports
- Bill of entry/bill of imports
On the other hand, regulatory documentation refers to the regulatory authorities. These regulatory authorities cover all licensing, customs, excise, and export promotion councils.
Other import duties
According to the Indian GST laws, basic duty is levied on imports as specified under the Customs Tariff Act of 1975. Depending on how the material is classified under the IGST law, an IGST is also levied.
Every business owner must adhere to the Indian Import and Export Procedures. You must also thoroughly research your target market to ensure that you have an in-depth understanding of the products and services that are in demand in that particular country. Good knowledge of the market and government regulations will help any company succeed and make huge profits.
There are many DGFT Consultancy Services available to help you make your first international trade. They can answer all your questions and provide information about the process, documentation, and recommendations to manage your import-export business while maximizing profits.
Hope you are like this article about What is the procedure of the import and export business in India?
