The first requirement before you start an import/ export
business in India is to obtain an IEC. An IEC is necessary for import/export of
goods. In case the import/export is of services or technology, IEC is required
in only limited circumstances, when import/export is in ‘specified services’ or
‘specified technologies’, i.e. services or technologies in which international
trade is restricted by the Government of India as they pertain to national
security, such as dealing in nuclear weapons, automatic guns, etc.
Registration Cum Membership Certificate
Cum Membership Certificate (RCMC) is issued by Export Promotion
Councils/Commodity board/Development authority or other competent authority as
prescribed in FTP or HBP Vol1. Any firm applying for an Authorisation to
import/export or avail any other benefits / concession under FTP is required to
furnish valid RCMC.
Digital Signature Certificate
The digital equivalent of a handwritten signature or stamped
seal, but offering far more inherent security, a digital signature is intended
to solve the problem of tampering and impersonation in digital communications.
Digital signatures can provide the added assurances of evidence to origin,
identity and status of an electronic document, transaction or message, as well
as acknowledging informed consent by the signer.
Export Incentive Under Chapter 3
Merchandise Export India Scheme (MEIS License)
Merchandise Exports from India Scheme (MEIS) under Foreign
Trade Policy of India (FTP 2015-20) is one of the two schemes introduced in
Foreign Trade Policy of India 2015-20, as a part of Exports from India Scheme.
Duty Credit Scrips shall be granted as rewards under MEIS. The Duty Credit
Scrips and goods imported / domestically procured against them shall be freely
transferable. The Duty Credit Scrips can be used for the following
Payment of Customs Duties for import of inputs or goods, except items listed in
Payment of excise duties on domestic procurement of inputs or goods, including
capital goods as per DoR notification.
Payment of service tax on procurement of services as per DoR notification.
Payment of Customs Duty and fee as per paragraph 3.18 of this Policy.
Service Export India Scheme (SEIS License)
Services Exports from India Scheme introduced as per Foreign Trade
Policy of India 2015-2020 from 1st of April 2015 to 31st of March, 2020. SEIS,
Services Exports from India Scheme under Foreign Trade Policy of India 2015-20
is a modification of SFIS, Served from India Scheme under Foreign Trade Policy
2009-14. The rates of reward are 3% and 5%. Free Foreign Exchange earned
through international credit cards and other instruments, as permitted by RBI
shall also be taken into account for computation of value of exports under
SEIS. As per Foreign Trade Policy 2015-20, SEIS is also eligible to units of
SEZs, Special Economic Zones.
Incremental Export Incentive Scheme (IEIS License
The objective of the Scheme is to incentivize incremental exports.
The duty credit scrip will be freely transferable and shall also be
eligible for domestic sourcing. An exporter would be entitled for a duty credit
scrip @ 2% on the incremental growth (achieved by the exporter) on the FOB value of exports.
Incremental growth shall be in respect of each exporter (IEC holder) without
any scope for combining the exports for Group Company. Incentive will be
admissible only if the IEC holder has achieved growth in the FY 12-13 / 13-14
compared to FY 11-12 / 12-13 respectively. Quantum of benefit will be
calculated on the incremental growth achieved subject to eligibility criteria.
Focus Market Scheme (FMS License)
Focus Market Scheme is
introduced on 11th September, 2009 with
supplement later on 13th October, 2011 in annual
supplement to Foreign Trade Policy with a vision to support exporters in
competing with foreign export market against high freight cost and other
externalities. The exporters of all products to countries, as notified in
Appendix 37C of HBP Vol.1 are entitled for Duty Credit Scrip equivalent to 3%
of FOB value of exports in free foreign exchange.
As per annual supplement to
the Foreign Trade Policy announced by DGFT on 13th October, 2011, SFMS, Special Focus Market Scheme has
been introduced by extending 1% duty credit for all exports to 41 countries
with effect from 01st April, 2011.
This duty credit of 1% is
apart from 3% under FMS. In other words, if an exporter effects shipments to
the above referred 41 countries listed, duty credit would be 4%.
Focus Product Scheme (FPS License)
The main objective of this
scheme is to incentivize export of products, which have high employment
intensity and other advantages. FPS aims to promote these products in the
international Market. The scheme was launched in 2006. Later several amendments
were made to the scheme by adding more products eligible for export incentives
under the scheme and giving different rate of duty credit scrip concessions.
As per the FPS policy,
exports of notified products to all countries shall be entitled for duty credit scrip equivalent to 2 -5 % of the value of exports for each
licensing year. Duty credit scrip is a license to import commodities in a duty
free manner for the scrip value (2-5% of exports).
Market Link Focus Product Scheme (MLFPS License)
This article is a
continuation of export schemes and incentives provided by Government of India
to exporters to earn foreign exchange to strengthen India’s balance of trade
Some of the export sectors or
some of the export products could be left out under Focus Product Scheme list
to enjoy reward scheme, but those sectors/products perform high intensity and
provide employment potential. Such exporters are eligible for 2% incentives on
FOB value of exports in foreign exchange under Focus Product Scheme when
exported to the Linked Markets and countries, which are not covered in the
present FMS list.
To promote exports of
Agricultural Produce, Minor Forest Produce, Gram Udyog Products, etc Vishesh
Krishi And Gram Udyog Yojana is introduced. Duty Credit Scrip benefits are
granted with an aim to compensate high transport costs, and to offset other
Exporters, of products
notified in Appendix 37A of HBPv1, shall be entitled for Duty Credit Scrip
equivalent to 5 % of FOB value of exports (in free foreign exchange) for
exports made from 27.8.2009 onwards, unless a specific date of export / period
is specified by public notice / notification.
Duty Credit Scrip benefits under VKGUY shall be granted only at a reduced rate
of 3% in certain specified cases.
Serve From India Scheme (SFIS License)
Under this scheme, all Indian
Service Providers having free foreign exchange earning of at least Rs.10 Lakhs
in preceding / current financial year can claim for Additional Duty Credit
Scrip. This Duty Credit Scrip is equivalent to 10% of free foreign exchange
earned during current financial year. Free foreign exchange earned through
International Credit Cards and other instruments as permitted by RBI for
rendering of service are also taken into account for computation of Duty Credit
Duty Credit scrip may be
used for import of any capital goods including spares, office equipment and
professional equipment, office furniture and consumables. Hotels of 1-star and
above can import consumables such as food items and alcoholic beverages in
addition to capital goods. This import can relate to any service sector
business of applicant. Entitlement / goods (imported / procured) are
transferable only within company group and managed hotels.
Duty Exemption Scheme Under Chapter 4 & 5
An Advance Licence is granted to a merchant-exporter or
manufacturer-exporter for the import of inputs required for the manufacture of
goods without payment of basic customs duty. However, such inputs shall be
subject to the payment of additional customs duty equal to the payment of
additional customs duty equal to the excise duty at the time of import, which
shall be adjusted as specified in the policy. Manufacturer-exporters as well as
merchant-exporters are also exempt advance licence and/or material imported
thereunder is not transferred even after completion of export obligation.
New Capital goods can be
imported including computer software systems with a licence under the Export
Promotion Capital Goods (EPCG) Scheme by, Manufacturer exporters with or without
supporting Manufacturer, Vendor, Merchant exporters tied to supporting
manufacturer and service providers are eligible to import capital goods. The
capital goods imported by the licence holder shall be installed at the factory
of the licence holder or his supporting manufacturer(s) / vendor(s).
Capital goods (CG),
including jigs, fixtures, dies, moulds and spares upto 20% of the CIF
value of the capital goods may be imported at 5% Customs duty subject to
an export obligation equivalent to 5 times CIF value of capital goods on
basis or 4 times the CIF value of capital goods on NFE basis to be fulfilled
over a period of 8 years reckoned from the date of issuance of licence.
Service Tax Refund
Earlier the procedure for refund of service tax paid on the services received by an
exporter and used for the export of goods
was governed by Notification No. 52/2011 dated 30-12-2011. In the new regime with the advent of the Negative list
approach the said notification has been
superseded by Notification No.41/2012 dated 29-06-2012. The rebate shall be granted by way of refund of
service tax paid on the
4% SAD Refund
India are charged with a Special counter veiling duty known as Special
Additional Duty (popularly known as SAD) at the rate of 4% and is leviable
under sub-section (5) of Section 3 of the Customs Tariff Act, 1975. This is
charged on the total value of imports including CIF + Basic Customs duty + CVD.
This duty is to countervail sales tax leviable on the sale of goods in India to
give level playing field to domestic industry.
This 4% SAD is refundable to the import traders
i.e. who sold their goods in India without changing identity of goods in
pursuance of Notification No. 102/07-Custom Dt. 14.09.2007 subject to
fulfilment of various conditions and procedure as laid down by government in
various subsequent circulars, instructions and public notices. This refund is
known as SAD Refund in commercial parlance.
Terminal Excise Duty
In respect of supply of goods to an EPCG Authorisation holder, against
Invalidation Letter, application for Advance Authorisation / DFIA shall be made
as per procedures given in Chapter 4 of HBP. In respect of supply of goods to
EPCG Authorisation holder against ARO, issued as per Paragraph 5.08 of HBP,
refund of TED shall be allowed. No TED refund shall be provided for supply of
goods to EOU / EHTP / STP / BTP.
When subsidiary company imports
from its Holding Company, custom may think that assessable value shown by
subsidiary is less than actual value, they may levied EDD on import by
subsidiary. It is refunded if importer prove assessable value is genuine. He
has to take SVB order and claim refund from customs.
Import / Export Licence of Restricted Item
Export of SCOMET items is restricted. Their export is permitted only
against an authorisation / licence. Export restriction and licence applies to
SCOMET exports from SEZ as well. All applications for licence for export of SCOMET
items are considered on merits by an Inter-Ministerial Working Group (IMWG) in
the DGFT. Once the case is approved by the IMWG, permission letter is issued to
the exporter for obtaining export authorization from the concerned
Zonal/Regional office of the DGFT.
As per the provisions of Exim Policies, The Central
Government, in public interest, regulates the import or export of goods by
means of a Negative List of Imports. This Negative Lists consist of goods whose
import is prohibited & restricted through licensing or otherwise, or
canalised and accordingly prohibited items in this Negative List of imports
shall not be imported. Such goods can only be imported or exported by the
canalising agency specified in the Negative Lists. The Directorate General of
Foreign Trade may, however, grant a licence to any company to import or export
any canalised goods. Our Service is including obtaining of Approval Head DGFT
Office at New Delhi and Final License from Regional DGFT Office.
Import / Export Clearance
-AD Code Registration -First Time Import & Export Clearance -Clearance of Import Shipment at Sea / Air -Clearance of Export Shipment at Sea / Air -All types of License Registration at all Custom -Bond & BG Cancellation of EPCG License -Bond & BG Cancellatoin of Advance License