registration formalities
Transcript of registration formalities
REGISTRATION FORMALITIES FOR
EXPORTS
UNIT 1
Registration in India
Exporter need to register with various
authorities
Direct or indirect help in smooth conduct of
export trade
REGISTRATION
1) Registration of Organisation
2) Opening Bank Account
3) Obtaining PAN
4) Obtaining Importer-Exporter Code Number (IEC No)
5) Registration with Value Added Tax Authority and Sales Tax Authority
6) Registration with Export Promotion Council (EPC)
7) Registration with Export Credit and Guarantee Corporation of India (ECGC)
8) Registration with other authorities
Registration of Organisation
Depending on type of organisation
A Joint Stock Company – Companies Act, 1956
A Partnership Firm – Indian Partnership Act, 1932
A Sole Trader – seek permission from local authorities as
required
Opening Bank Account
Current Account in the name of firm or company
With commercial bank authorised by RBI to deal in
foreign currency transactions
All financial transactions through this account
Bank – source of pre-shipment and post-shipment
finance for the exporters
Obtaining PAN (Permanent Account Number)
Register with Income Tax Authorities
Necessary for obtaining IEC number
Also for claiming exemptions and deductions under different sections of Income Tax Act
Importer-Exporter Code Number (IEC No)
10 digit code
Mandatory for import as well as export
Until 31st December, 1997 – issued by RBI
From 1st January 1997 – issued by Director General of
Foreign Trade (DGFT), Ministry of Commerce, GOI
Importer-Exporter Code Number (IEC No)
Eligibility & Legal Provisions
No. allotted shall be valid for all its branches/divisions/units/factories
If lost or misplaced, request for duplicate IEC number on submission
of an affidavit
If does not wish to operate, surrender IEC number by informing
issuing authority
Only one IEC no. against single PAN number
Mandatory document to apply – PAN number, Current Bank Account,
Banker’s Certificate
Importer-Exporter Code Number (IEC No)
Application Procedure
New system - Online submission of application
2 options for applying –
1) physical application
2) Online application and physical submission
of copy
PHYSICAL APPLICATION PROCEDURE
Applicant – registered office in case of JSC, Head Office in
case of proprietorship, partnership concern, HUFs
‘Aayaat Niryaat Form – ANF2A’
To concerned Regional Authority (RA) of DGFT
PHYSICAL APPLICATION PROCEDURE
Documents accompanied
Covering letter on letter head
2 copies of application in prescribed format
Signature of applicant on each page of application
DD/Bank Receipt/EFT of Rs. 250 as registration fee
Banker’s certificate in prescribed format
PHYSICAL APPLICATION PROCEDURE
Documents accompanied
Self Certified copy of PAN issuing letter or PAN card
2 copies of passport size photographs of applicant duly attested by
banker of the applicant
Self addresses envelope with Rs. 25 postal stamp for delivery of IEC
certificate by registered post or challan/DD of Rs. 100 for speed post
ONLINE APPLICATION PROCEDURE
DGFT website http://dgft.gov.in
Physical application within 15 days of its online submission to DGFT Regional
Licensing Authority
Payment of Registration Fee
If by DD, IEC only after receipt of physical copy of application
If by EFT, IEC no. generates automatically and can be viewed
After submission of physical copy, Same IEC printed in 24 Hours time and
dispatched to firm
EXEMPTION FOR IEC NUMBER
1. Importers – Clause 3(1) (except sub clause (e) and (l))
2. Exporters - Clause 3(2) (except sub clause (i) and (k))
3. Ministries/Department of the Central or State Govt
4. Persons importing/exporting for consumption purpose
EXEMPTION FOR IEC NUMBER
5. Persons importing/exporting goods from/to Nepal – provided the CIF
value of single consignment not exceeding Indian Rs. 25000/-
6. Persons importing/exporting goods from/to Myanmar border areas -
provided the CIF value of single consignment not exceeding Indian
Rs. 25000/-
EXEMPTION FOR IEC NUMBER
7. Persons importing/exporting goods from/to China through Gunji,
Namgaya Shipkila and Nathula ports – provided the CIF value of
single consignment not exceeding Indian Rs. 25000/- (Nathula – Rs.
1,00,000)
Exemption not applicable for export of special chemicals, organisms,
materials, equipments and technologies as listed in Appendix 3,
Schedule 2 of ITS (HS)
REGISTRATION WITH VAT AUTHORITY AND ST AUTHORITY
Compete exemption for VAT and CST to goods manufactured or
purchased from local market for export purpose
Provided the registration of firm with VAT authority of state
concerned
and obtain exemption as per the procedure laid down in the
concerned act
REGISTRATION WITH EXPORT PROMOTION COUNCIL (EPC)
Obligatory for every exporter
Registration with appropriate EPC
Obtain ‘Registration-cum-Membership Certificate’ (RCMC)
Presently 21 EPCs dealing with various commodities
Benefits of new FTP 2009-2014 only to registered exporters
REGISTRATION-CUM-MEMBERSHIP CERTIFICATE (RCMC)
Required by any firm or company
Applying for any import/export license
To avail any other concession or benefit
Validity – 5 years from 1st April of licensing year to 31st March of licensing
year
De-registration – on the ground of violation of conditions of registration -
first show cause notice – reasonable opportunity against proposed de-
registration
Issuing Authorities of RCMC
Option for exporter - Federation of Exporters Organisations (FIEO)
or relevant Export Promotion Council (EPC)
Option for status holder- FIEO
Export not covered by any EPC –FIEO
Exporters of forest produce – Shellac and Forest Products Export
Promotion Council
Software exporters – Electronic and Computer Software EPC (ESC)
Exporters of 14 services – (listed in handbook of procedure) EPC
Other service exporters - FIEO
Issuing Authorities of RCMC
APPLICATION FOR RCMC
Application in specified format for becoming a member of EPC
Registration as Manufacturer Exporter – need to furnish
evidence to that effect
APPLICATION FOR RCMC
Documents required
Application of Registration-cum-Membership
A self certified copy of IEC number issued by the licensing authorities
concerned
Bank certificate in support of applicant’s financial soundness
SSI/IEM certificate in case of registration as Manufacturer Exporter
APPLICATION FOR RCMC
Documents required
A declaration regarding exports and imports effected during the preceding
financial year
A copy of M/A and A/A in case of companies and Partnership Deed in case of
partnership firms
EXPORT LICENSE
Export items regulated by ITC (HS) classification
Restricted items permitted under license
A document issued by the appropriate licensing agency to allow
export
Issue of license only after careful review of facts related to given
export transactions
EXPORT LICENSE
Export license – only for Goods mentioned in Schedule 2 of ITC (HS)
classification
Submission of proper application to DGFT
Consideration of application by Export Licensing Committee under
the chairmanship of Export Commissioner
EXPORT LICENSE
DGFT – specifies terms and conditions related to ITC (HS)
classification from time to time
Examples – Live horses, Rice bran, raw and boiled, Urea, Sand and
Soil, Live cattle, camel, etc.
REGISTRATION WITH ECGC
Exporters – commercial as well as political risk in international market
Protection against such risk
Necessary registration with Export Credit and Guarantee Corporation of
India (ECGC)
Also helps in obtaining financial assistance from commercial banks and other
financial institutions
REGISTRATION WITH OTHER AUTHORITIES
Federation of Indian Export Organisation (FIEO)
Indian Trade Promotional Organisation (ITPO)
Chambers of Commerce (COC()
Productivity Councils, etc.