Do you know, India rank is the 19th rank for export of merchandize and 12th rank in import merchandize in the world. There is plenty of opportunity to establish a successful import export business in anywhere. To understand import export as a business entrepreneur must have to know that to understand of all documentation related import or export transactions.
In this article, we covered what are documents required while you go for import export procedure in India and abroad.
Benefits of Import Export
The major benefits of Import Export are with the following:
While you think for business in abroad, that is a big dream of every business man. Once your product or brand famous internationally then definitely your brand value would be high in the global market. Millions of customers will be increased by many folds when you are importing or exporting, so it definitely dilutes all your competitors and hence leading to lack of competition.
In our country, the Government also promotes export as it increases the GDP of the nation, so if you are an exporter the nation gives more benefits to you by the government in form of subsidies and other duty drawbacks.
Import Export Procedure:
Before going to get registration to get license for import and export business, you need to follow up the following procedure as well.
Get Import Data Code
First of all you need to get registered with IEC (Import Export Code). That is you will get it from Directorate General of Foreign Trade (DGFT) and online registration also available now. To achieve this code process will be taken around 15 days.
Required Documents of IEC Registration
Following documents are mandatory while you are going for import export code registration.
- PAN card which is mandatory along with,
- A cancelled Cheque,
- A passport size photograph of the person applying for the license.
- ID or Address proof
Above these are some of the basic documents which you need for applying for the registration.
Required HS Code
Next step you have a major thing required that is Harmonized System of Code (HS Code). That helps to identify the products or your service which plays a major role in terms of import-export process.
HS Code generally 8 digit code and different product or services categorized with their own HS Code as per Directorate General of Foreign Trade (DGFT).
Ensuring the Legal Compliance for Products
After getting IEC, your business must comply with the rule mentioned in section 11 of the Customs Act of 1962 as per foreign trade development and regulation act that is completely based on foreign trade policy. IEC helps in getting an insight into certain products or services allowed as well as restricted to sell or import from other countries.
Required Import License
Before starting an import-export business, the importer should have knowledge in Import License. And it’s important for a better understanding for their goods and services.
Import license categorized into two types:
- General License: an importer involved in the process of importing can easily import goods from any country of the world.
- Individual License: in case of Individual License or it is also called specific license that can be used to importing goods or services from specific countries.
However, an importer or exporter needs to apply for the export, import license from the Directorate General of Foreign Trade office. Besides that, this is also needed to register your business at Indian Chamber of Commerce (ICC) to mention that your manufactured products and services are of Indian origin that allows for easy export of goods and services in the overseas market.
When a company is being registered and going to perform import and export activities, it has to submit some certain documents such as commercial and regulatory documents.
Following documents required which comes under the commercial document category, these are:
- Commercial Invoice as well as Packaging Bill
- Shipment Bill or Exports Bill
- Bill of Lading or Airway Bill
- Entry Bill or Import Bill
- Letter of Credit
- Certificate of Origin
On the other side, regulatory documentation deals with the regulatory authorities. The regulatory authority’s means the details of licensing documents, customs, excise duty or the export promotion councils of India, etc.
Rules and regulations are changed time to time so we would suggest this is better for more information you can visit DGFT office.
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