Application Processing
WHAT IS IMPORT-EXPORT LICENSE
According to section 2(23) of Customs Act, 1962, Import means bringing into India from a place outside India, and similarly in section 2(18) of Customs Act, 1962, Export means taking out of India to a place outside India. In order to import or export an individual is required to have a mandatory license in the form of IEC (Import Export Code) which is a 10 digit key business identification number. No export or import can be made out by a person without having the IEC code. IEC code is issued by the DGFT (Directorate General of Foreign Trade) which is under the Ministry of Commerce and Industry in the form of a digital certificate. Once issued, it remains valid for a lifetime. An IEC license is to be shown by the trader at the customs authorities, at the bank when he receives the money directly from the importer when he exports shipments at the customs port, and in necessary cases as allowed by DGFT from time to time.
DGFT is the primary executive body that is responsible for the import and export policies in the country. In India, exports and imports are regulated by Foreign Trade (Development and Regulations) Act, 1992, and the Import-Export policy which is currently (2015-2020). The importer and exporter have to follow the guidelines as set out by the RBI (Reserve bank of India) from time to time relating to Import and Export.
REGISTRATION PROCEDURES
On the basis of their IEC registration, the companies could receive several benefits for their imports/exports from the DGFT, Export Promotion Council, Customs, and others. Here is the process to get these benefits.
- To begin, you must prepare an application form in the specified format - Aayaat Niryaat Form ANF-2A format - and file it with the appropriate DGFT Regional office.
- Second, you must prepare the necessary documents pertaining to your identity and legal entity, as well as address proof with your bank details and the ANF2A certificate.
- Once your application is complete, you must file it with DGFT via DSC (Digital Signature Certificate) and pay the IEC Registration fee.
- Finally, once your application is approved, you will receive a soft copy of the IEC Code from the government.
EXEMPTIONS FOR OBTAINING EXPORT-IMPORT LICENSE
There are certain categories enshrined by the Ministry of Commerce and Industry which are exempted from obtaining the mandatory requirement of IEC license in order to bring something into India or to send anything outside India –
- Anything which is taken outside or brought inside into India by the Ministries /Departments of Central or State Governments of India is exempted from obtaining the necessary license.
- Anything which individual imports or exports for personal use which is not connected with trade, manufacture or agriculture is exempted from the requisite license
- An Individual who is importing/exporting goods from/to Nepal, Myanmar through Indo-Myanmar border areas and China (through Gunji, Namgaya, Shipkila and Nathula ports), provided CIF( Cost in Freight) value of a single consignment does not exceed Rs.25,000 while in case of Nathula port, itis Rs. 1,00,000/, is exempted from having the necessary license.
- All the Diplomatic personnel, Counsellor officers in India, and officials of UNO and its specialized agencies are exempted from procuring the IEC license.
