Highlights of EXIM laws & provisions in India
EXIM Laws is a set of guidelines, regulations for liberalization of foreign trade and indicate measures for export promotion issued under the Foreign Trade Development & Regulation Act.
The main governing body with respect to export and import of goods is the Directorate General of Foreign Trade (“DGFT”). The EXIM Policy is generally framed for 5 years tenure (2015-2020 is in effect) and aimed at Enhancing the country trade for economic growth, export promotion, and employment generation amongst other benefits.
Features of EXIM Registration & IEC Code:
- The exporters can expand its business globally and grow its business widely.
- The exporters can get specified government concessions under the Export Promotion Council.
- The IEC Code is valid for a lifetime, so there is no cost of the renewal. The IEC code can be obtained by any person of any legal entity.
- There is no routine compliance on a monthly, quarterly or annual basis like return filing, etc. after registering under this act.
To obtain IEC Code electronically and keeping in view the jurisdiction of the place of business, the application shall be made through http://dava.gov.in:8080/dgftiec/panSearch.jsp
- Select your business type.
- Open Current Account in Bank which is authorized in dealing in foreign exchange as per Foreign Exchange Management Act (“FEMA”).
- Enter PAN obtained from the Income Tax Department in the PAN Section.
- Enter your name for the business.
- After filling and attaching the relevant documents on the online portal, one can obtain the IEC code. Complete the form and pay the requisite fee for the IEC registration.
- Once the application is approved within a given time frame, you will get the certificate in soft copy on the portal under DGFT.
List of Documents:
- Self-attested copy of Pan Card, Adhar Card of the person authorized.
- Address Proof of the business (Rent Agreement, Utility Bill, etc.).
- Pre- Cancelled Cheque from the Bank.
- Passport size photograph of the authorized person.
Registering your entity under this does not only facilitate entry into the international market but also gives relief from certain compliances and lets your entity be at good position, stability in the Indian domestic market and also leads to the development of the Indian economy.
Terms to know:
- Import Export code:
It’s a 10 digit unique identification code issued by DGFT, to start the import or export business in India for goods and/or services. It acts as a primary proof for any enterprise to do business as an importer/ exporter.
It is to be submitted to the various authorities for doing export or import, thus act as a license to do Import/ Export business.
- Export Promotion Council:
It is a setup created under Foreign Trade Policy, authorized to issue schemes intended for promoting, supporting and assisting entities entering the international market and realizing their optimum potential from the available resources.
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Also Read: Disqualification of Director under Companies Act