1. Lecture By: Sneha Sharma

2. Selection of Name of Firm
Approval to Name of Firm
Registration of Organisation
Opening of Bank Account
Obtaining Permanent Account Number

3. Registration with Sales Tax Authorities
Importer-Exporter Code number
Registration cum Membership Certificate
Registration with ECGC

4. Registration under Central Excise Law
Registration with other Authorities
Registration for Business Identification Number
Export Licensing

5. 
Exporter need not pay sales tax while making
purchases, meant for export.

For availing the benefit, firm has to register with sales
tax authorities and secure sales tax number.
 Exporter/purchaser
has
to
give
Form-H
to
the
seller/manufacturer.
▪ For this purpose, exporter has to make an application along with
copy of letter of credit or export order to the Sales Tax Office that
has jurisdiction to his office for issuance of Form-H.
 Exporter prepares Form-H, in triplicate, and issues two
copies to the seller and retains one copy for his record.

7. 
No export or import transaction can be made
without obtaining an importer-exporter code
number.
 IEC number is a pre-condition for exports from
and imports into India.
 This code number is made compulsory, now.

8. 
IEC Code is unique 10 digit code issued by DGFT

Full From of IEC Code is :“Importer Exporter
Code ”
 To import or export in India, IEC Code is mandatory.
▪ No person or entity shall make any Import or Export without
IEC Code Number.

9. 
An application for grant of IEC number shall be made
by the Registered/Head Office of the applicant and
apply to the nearest Regional Authority of
Directorate General Foreign Trade,
 the Registered office in case of company and Head office in
case of others, falls in the ‘Aayaat Niryaat Form ANF2A’ and shall be accompanied by documents prescribed
therein.
 Only one IEC would be issued against a single PAN number.
▪ Any proprietor can have only one IEC number and in case there are more
than one IECs allotted to a proprietor, the same may be surrendered to the
Regional
Office
for
cancellation.

10. 
The application can be download Form in PDF
or Word.
 Along with IEC Code Number Application Form it is
necessary to submit Appendix-18B Attested by
Applicant's Banker in his letter head with two
passport size photo.

Validity of IEC Code No
 An IEC number allotted to an applicant shall be valid
for all its branches/divisions/units/factories .

11. 
Where an IEC Number is lost or misplaced,
 the issuing authority may consider requests for grant of a
duplicate copy of IEC number,
▪ if accompanied by an affidavit.

Surrender of IEC Number
 If an IEC holder does not wish to operate the allotted IEC
number, he may surrender the same by informing the
issuing authority.
▪ On receipt of such intimation, the issuing authority shall
immediately cancel the same and electronically transmit it to DGFT
for onward transmission to the Customs and Regional Authorities.

12. 
Application Fee : Rs 250.00

Mode of Payment
 In Demand Draft of any Bank or
 Payment through EFT or
 Application fee can deposited by TR6 Challan with Duplicate
Copy in any branch of Central Bank of India and TR6 Challan
need to be submit along with IEC Code Application.

Territorial Jurisdiction of Regional Authorities
 Every
application, unless otherwise specified, shall be
submitted to the Regional Authority of Directorate General
Foreign Trade, as per the territorial jurisdiction of the Regional
authorities.

13. 
Each Importer/Exporter shall be required to file
importer/ exporter profile once with the
Regional Authority in Part 1 of ‘Aayaat Niryaat
Form - ANF2A’.
 Regional Authority shall enter the information
furnished in Part 1 of ‘Aayaat Niryaat Form ANF-2A’ in
their database so as to dispense with the need for
asking the repetitive information.
▪ In case of any change in the information given in Part 1 of
‘Aayaat Niryaat Form ANF-2A’, importer/exporter shall
intimate the same to the Regional Authority.

14. 
The following categories of importers or exporters are exempted
from obtaining Importer - Exporter Code (IEC) number:
 Importers covered by clause 3 (1) [except sub-clauses (e) and (l)]
and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of the Foreign Trade (Exemption from application of Rules in
certain cases) Order, 1993.
 Ministries/Departments of the Central or State Government.
 Persons importing or exporting goods for personal use not
connected with trade or manufacture or agriculture.
 Persons importing/exporting goods from/to Nepal provided the CIF
value of a single consignment does not exceed Indian Rs.25,000.
 Persons importing/exporting goods from/to Myanmar through
Indo-Myanmar border areas provided the CIF value of a single
consignment does not exceed Indian Rs.25,000.

15.  However,
the exemption from obtaining
Importer-Exporter Code (IEC) number shall not be
applicable for the export of
▪ Special Chemicals, Organisms,
▪ Materials, Equipments and
▪ Technologies (SCOMET)

16. 
Mandatory Requirements to apply for IEC Code Number





PAN Number
Current Bank Account
Bankers Certificate
IEC Code Number
Application Fee : Rs 250.00

The physical application containing required documents should reach
DGFT RLA concerned within 15 days of its online submission.

Covering Letter on your company's letter head for issue of new IEC Code
Number.

Two copies of the application in prescribed format

17. 
Aayaat Niryaat Form ANF 2A must be submitted to
your regional DGFT Office.
 Each individual page of the application has to be signed by
the applicant. Part 1 & Part 4 has to be filled in by all
applicants. In case of applications submitted
electronically.
 No hard copies of Part 1 may be submitted. However in
cases where applications are submitted otherwise, hard
copy of Part 1has to be submitted.
 Only relevant portions of Part 2 need to be filled in.
 Rs 250.00 Bank Receipt (in duplicate)/Demand Draft/EFT
details evidencing payment of application fee in terms of
Appendix 21B.

18. 



Certificate from the Banker of the applicant firm in
the
format
given
in
Appendix 18A.
Self certified copy of PAN issuing letter or PAN
(Permanent Account Number) Card issued by Income
Tax Authority.
Two copies of passport size photographs of the
applicant duly attested by the 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.

19. 
The Registered/Head office of the applicant shall make an
application for grant of IEC number to the Regional office of DGFT
(known as Regional Licensing Authority), having territorial
jurisdiction over the firm, along with the following documents:




(A) Profile of the exporter/importer
(B) Demand draft from a bank for Rs.1,000 as fees
(C) Certificate from the banker of the applicant
(D) Two copies of passport size photographs of the applicant, duly
attested by bank.
 (E) If there is any non-resident investment in the applicant firm and
such investment is with full repatriation benefit, full particulars of such
investment are to be disclosed and approval of RBI for such
investment is to be enclosed.
 (F) Declaration on applicant’s letterhead that there is no association of
the applicant’s firm with caution listed firms.

20. 
There are different Export Promotion
Councils such as
 Engineering Export Promotion Council,
 Chemical Export Promotion Council,
 Apparel Export Promotion Council and
 Textile Export Promotion Council etc.

21. 
However, if the export product is not covered
by any EPC, the concerned Regional
Licensing Authority of DGFT can issue RCMC
to the exporter.
 With the receipt of certificate, the exporter will be
known as “Registered Exporter”.
 The benefits provided in the current Exim policy
are available only to the registered exporters
having valid RCMC.

22. 
The exporter should also register with Export
Credit and Guarantee Corporation of India
(ECGC) in order to secure export payments
against political and commercial risks.
 It also helps to get financial assistance from
commercial
banks
organisations
and
other
financial

23. 
To encourage and facilitate globalization of India’s trade.

To assist Indian exporters in managing their credit risks by
providing timely information on worthiness of the
buyers, bankers and the countries.

To protect the Indian exporters against unforeseen losses,
 which may arise due to failure of the buyer,
 bank or problems faced by the country of the buyer by providing cost
effective credit insurance covers in the form of Policy, Factoring and
Investment Insurance Services comparable to similar covers available
to exporters in other countries.

24. 
To facilitate availability of adequate bank finance to the Indian
exporters by providing surety insurance covers for bankers at
competitive rates.

To achieve improved performance in terms of profitability,
financial and operational efficiency indicators and achieve
optimum return on investment.

To develop world class expertise in credit insurance among
employees and ensure continuous innovation and achieve the
highest customer satisfaction by delivering top quality service.

To educate the customers by continuous publicity and effective
marketing.

25. 
Central excise levy is applicable if the
following conditions are satisfied:
(a) The duty is on the goods
(b) The goods must be excisable
(c) The goods must be manufactured or produced and
(d) The goods must be manufactured and produced in
India.

26. 
Every manufacturer/producer of goods has to
submit the prescribed application form to the
jurisdictional Range officer of the Central
Excise
 for registration if the total value of the goods
cleared for home consumption, known as
Domestic turnover, exceeds the exemption limit.
▪ The exemption limit is
▪ Rs. 100 lakhs in case of SSI unit and
▪ Rs. 50 lakhs in case of non-SSI units.

27. 
Once the unit is registered with Central
Excise Authority,
 they allot Excise Control Code (ECC) Number.
 The ECC number is 15 digit code number with the
first 10 digits being the same a Permanent
Account Number.

28. 
In respect of applicability of excise duty on
exports concerned, goods enjoy exemption
from duty on the final product, meant for
export.
 Where exemption is not availed, refund of excise
duty paid is made, after actual export.
 Secondly, refund of excise duty is made on inputs
used in the manufacture of goods, meant for
export.

29.  The exporter has to submit the prescribed form
ARE-1, in six tuplicate, to the competent central
excise authority for the central excise clearance of
the goods.
 The procedure for clearance of central excise
would be discussed, in detail, in the chapter
dealing with “Excise clearance of cargo”.

30. 
It is desirable for the exporters to become
members of
 local Chamber of Commerce,
 Productivity Council or
 any other trade promotion
organisation
recognised by the Ministry of Commerce or
Industry.
 Local membership helps the exporters in different
ways, including in obtaining Certificate of Origin,
which is vital for exports to certain countries

31. 
The exporters have to obtain PAN based
Business Identification Number (BIN) from
the Directorate General of Foreign Trade prior
to filing for customs clearance of export
goods.

32.  Purpose
of BIN is to bring a common
identification number to all persons dealing with
various regulatory agencies, such as
▪ the Central Excise and Customs Department, Income Tax
Department, Offices of Director General of Foreign
Trade etc.
 All assesses would be considerably benefited if
they have to obtain just one identification number
for use by the various Government agencies.

33. Many items of goods are free for exports without
obtaining any licence, if they do not fall in the
Negative List.
 The Negative list consists of goods the import or
export of which is prohibited, restricted through
licensing or otherwise canalized.
 Part–I : Prohibited Items:

▪ These items can not be exported or imported. These
items include wild life, exotic birds, wood and wood
products in the form of logs, timber, pulp and charcoal.

34.  Part–II : Restricted Items:
▪ These are the items, export or import of which is
restricted through licence. They can be imported or
exported only in accordance with the regulations
governing in this behalf.
 Part–III
▪ Canalized Items: Goods, which are canalized, can be
imported or exported through the canalizing agency,
specified in the Negative List.

35. 
The Director General of Foreign Trade may issue a
licence to any other person to import or export those
items, which are included in the Negative List.

It is evident from the above, all goods may be
exported barring items in the Negative List.
 Items in the Negative list can be prohibited items,
imported or exported by licence or through the designated
canalizing agency or others under special conditions.
 So, it is necessary for the exporter to check the nature of
the item before he enters into the contract or even makes
efforts to secure the export order. Needless to add, the
item of export agreed upon should not fall in the banned
list.