Decoding India's Export and Import Procedures

India stands as a bustling hub for international trade, governed by a complex web of regulations and procedures. Understanding the intricacies of import and export processes is paramount for businesses seeking to engage in cross-border trade. Let's delve into the essential procedures and regulatory frameworks shaping India's import and export landscape.

Overview of Custom Clearance Procedure in India 

India's trade regulations are anchored in the Foreign Trade (Development and Regulation) Act, 1992, and the Foreign Trade Policy, 2015-20. These statutes empower the government to regulate and facilitate foreign trade, ensuring compliance and fostering economic growth.

Import Procedures in India

Navigating India's import procedures requires diligence and adherence to regulatory protocols. From obtaining the necessary licenses to clearing customs, each step demands meticulous attention to detail.

Obtain IEC (Import Export Code)

Every business intending to import goods from India must secure an Import Export Code (IEC) from the regional joint Directorate General of Foreign Trade (DGFT). This code, with lifetime validity, serves as a prerequisite for customs clearance, shipment, and foreign currency transactions.

Ensure Legal Compliance

Compliance with the Customs Act (1962), Foreign Trade (Development & Regulation) Act (1992), and Foreign Trade Policy, 2015-20, is imperative. Items categorized as restricted, canalized, or prohibited necessitate additional permissions and licenses from the DGFT and federal government.

Procure Import Licenses

The classification of goods using the Indian Trading Clarification (ITC-HS) system is fundamental. Import licenses, which may be general or specific, are valid for varying periods and are essential for import clearance.

File Bill of Entry and Clear Customs

Importers must submit a Bill of Entry, accompanied by requisite documents, to clear customs. Payment of applicable customs duties and taxes is mandatory for the release of goods.

Determine Import Duty Rates

Basic customs duty, anti-dumping duty, safeguard duty, and Integrated Goods and Services Tax (IGST) are levied based on the classification of imported goods.

Export Procedures in India

Exporting from India entails a series of procedural requirements and documentation. Understanding the export process is crucial for businesses aiming to tap into global markets.

Obtain IEC Number

Similar to import procedures, exporters must acquire an Import Export Code (IEC) from the regional joint DGFT.

Ensure Legal Compliance

Exporters must adhere to various trade laws and regulations governing export activities.

Apply for Export License

Depending on the nature of goods, exporters may need to apply for an export license from the DGFT.

Register with Indian Chamber of Commerce (ICC)

Registration with the ICC facilitates the issuance of Non-Preferential Certificates of Origin, certifying the origin of exported goods.

Import and Export Documents

• Businesses engaging in import and export activities in India must furnish a myriad of documents to comply with regulatory requirements:
• Commercial Documents: Bill of lading, commercial invoice cum packing list, shipping bill, or bill of entry.
• Regulatory Documents: GST return forms, Exchange Control Declaration, Bank Realization Certificate, Registration cum Membership Certificate (RCMC).

Indian Customs Compliance Information Portal (CIP)

The Central Board for Indirect Taxes and Customs (CBIC) launched the Indian Customs Compliance Information Portal (CIP) to streamline customs procedures and regulatory compliance. The portal provides comprehensive information on customs procedures, regulatory requirements, and contact details of regulatory agencies, fostering transparency and ease of doing business.

The CIP allows stakeholders to:

• Access step-by-step procedures for imports and exports.
• Obtain information on licenses, certificates, and permits required for trade.
• Stay updated on customs tariffs and regulatory changes.
• Locate customs ports and regulatory agencies across India.

Promotional Measures for Exporters

India has implemented various schemes and initiatives to promote exports and facilitate international trade:

• Extension of Foreign Trade Policy: The extension of the Foreign Trade Policy 2015-20 provides stability and continuity for exporters.
• Financial Assistance Schemes: Schemes like the Advance Authorization Scheme, Export Promotion Capital Goods (EPCG) Scheme, Interest Equalization Scheme, and Remission of Duties and Taxes on Exported Products (RoDTEP) scheme incentivize exports.
• Market Access Initiatives: Initiatives like Transport and Marketing Assistance (TMA) scheme and Market Access Initiative (MAI) Scheme support exporters in penetrating new markets and enhancing brand recognition.

Conclusion

Navigating India's import and export procedures demands meticulous planning and compliance with regulatory requirements. By understanding the regulatory landscape and leveraging promotional schemes, businesses can capitalize on the vast opportunities offered by India's dynamic trade ecosystem.

As you embark on your import-export journey, consider leveraging the resources and support available on Export Portal. With its comprehensive tools and network, Export Portal provides a seamless platform to connect with global partners, streamline trade transactions, and unlock new avenues for growth.