Essential Documents Required for Starting An Export Business in India

Starting an export business is undoubtedly a thrilling experience for many sellers across India. Exporting your products to the international market opens new doors of opportunities to expand your business. The government of India is always vigilant about introducing new schemes and campaigns that would help sellers and traders to establish and grow their export businesses. The first step towards that goal was reducing the number of documents required to start an import-export business. 

Before jumping into the list of essential documents like IEC code, it’s important to understand that different export product categories require different documents. Yet the basic set of documents is similar across various product categories. Now, let’s look at the essential documents that are necessary for starting an import-export business. 

IEC Certificate

IEC code, or the Import Export Code, is an essential document every import-export business legally requires to ship or receive products from international marketplaces. It is a 10-digit number that The Directorate General of Foreign Trade(DGFT), Government of India, provides. It allows importers and exporters to run their international import-export business seamlessly. There are numerous benefits of having an IEC certificate, and some of them are:

  • Access to government schemes, subsidies and campaigns
  • Strategic and financial support
  • Ease of registering an import-export business
  • Legal international trades

Whether you have a sole proprietorship, a private limited company or a partnership, it is mandatory to register for the IEC code certificate. Thankfully the process of obtaining an IE code certificate is very easy. Here are the steps to get the IEC certificate. 

  1. Visit the DGFT website. Click on the Services Tab and choose “IEC Profile Management” from the drop-down list.
  2. Enter your PAN details, mobile number and email ID.
  3. Fill out the application with necessary business and partner details.
  4. Upload essential documents like address proof and bank certificate.
  5. Once the officials review your application, the DGFT will issue your IEC certificate.

Import License

An import permit is an essential document for import customs leeway procedures. Apart from the regular import product categories, restricted product categories need special permits. The import licenses allow importers to import the products from the restricted objects category legally. It is also required in customs clearance for transporting certain products from international markets. 

The Director General of Foreign Trade, Delhi, issues the import license for conditional import of certain prohibited products. The license is valid for 2 years for capital goods and 18 months for consumables, raw material components and spares. There are two types of import licenses based on the country of import. The general license is used for importing goods from all countries except the prohibited ones. The specific license is used for importing products from a specific country.

Insurance Certificate

An insurance certificate is required for the clearing procedures in import customs. The certificate urges custom specialists to determine whether the import consignment needs protection based on the selling price. It is required to decide the accessible amount that determines the amount of import duty. 

The insurance certificate provides coverage of cargo damage or loss when in transit. In some situations, the shipper might provide documentation certifying that the consignment is insured under a particular open policy, and the certificate replaces the conditions of the open policy. It is not a mandatory document for import unless it is mandated in the trade term. The importer and exporters may choose not to insure their shipments at their own risk. Based on the commercial terms, the importer or the exporters is responsible for insuring the cargo with the insurance certificate. 

Registration cum membership certificate (RCMC)

The Registration-Cum-Membership Certificate (RCMC) confirms an exporter dealing with products registered with an Indian government-approved agency or organisation. In India, the certificate is valid for five years and is given by the Export Promotional Councils (EC) or commodities boards of a specific product category, such as handicrafts, textiles, etc. An exporter seeking an RCMC must specify his primary business in the application. This application would be presented to the Export Promotion Council/Commodity Board for that particular line of business.

A person can apply for the RCMC certificate for the following purposes:

  • To get authorised to import or export products from restricted product categories
  • To seek concessions and benefits like duty credit scripts, duty drawbacks under the Foreign Trade Policy(FTP) 

For spices importers and exporters, the Spices board issues the Certificate of Registration as an Exporter of Spices (CRES) which is considered the same as RCMC. That means the individual doesn’t have to apply for the RCMC to the Export Promotional Councils separately.

Bill of entry

The bill of entry is one of the essential documents in the import customs. It is a legal report that CHA (Customs House Agent) records and verifies. The Customs office and The Reserve Bank of India are in charge of the bill of the entrance, which is considered the absolute outwards settlement of nations. The individuals must document the bill of entry at the customs office within 30 days of the cargo influx. The customs officials evaluate and assess the products only after completing out the bill of entry and other customs documents. 

As much as it is exciting to start an import-export business, it’s also important to have these documents and paperwork in place so you won’t face any problems importing or exporting your products. Documents like the IEC code can be obtained easily from the DGFT website, while the other documents can be obtained from their respective official websites.  

Amazon Global Selling(AGS) is a revolutionary export program that empowers Indian exporters to expand their local business beyond international barriers. The program enables explorers to see their products across 18 international marketplaces in 200+ countries and territories. The $3 Billion+ ecommerce export sales can paint a picture of how promising it is to register on the Amazon Global Selling platform and expand your business into international marketplaces. Local sellers and exporters must leverage the countless benefits offered by the AGS that will create more income for business expansion opportunities.

Latest

The Different Technology Developed Because Of The Bitcoin Boom

Bitcoin is a digital creation, which means that its...

Why everyone should invest in stocks? 

It is true that the stock market has formed...

Picuki: Instagram Viewer and Editor

Instagram, one of the most important and valuable social...

Why Do Professional Athletes Invest So Heavily in NFTs?

With so much money being flitted around the sports...

Newsletter

Don't miss

The Different Technology Developed Because Of The Bitcoin Boom

Bitcoin is a digital creation, which means that its...

Why everyone should invest in stocks? 

It is true that the stock market has formed...

Picuki: Instagram Viewer and Editor

Instagram, one of the most important and valuable social...

Why Do Professional Athletes Invest So Heavily in NFTs?

With so much money being flitted around the sports...

GMA Pros Review: Making Trading Work for Everyone

GMA Pros is a well-known name on the general...

The Different Technology Developed Because Of The Bitcoin Boom

Bitcoin is a digital creation, which means that its roots were found using the technological advancements of the time. The first Bitcoin ever was...

Why everyone should invest in stocks? 

It is true that the stock market has formed up an enormous amount of wealth across the years. Since everyone wants to make more...

Picuki: Instagram Viewer and Editor

Instagram, one of the most important and valuable social networks, is an online gallery of images and videos.Sometimes it turns out to be difficult...

LEAVE A REPLY

Please enter your comment!
Please enter your name here