The Export-Import (EXIM) License is a mandatory registration required to conduct international trade in India.
Export Import License: A Guide to Starting Your International Trade Journey
An Export Import (EXIM) License is essential for businesses that wish to engage in the import and export of goods and services globally. It is issued by the Directorate General of Foreign Trade (DGFT), an agency under the Ministry of Commerce and Industry, Government of India. The EXIM license facilitates a smooth and legal process of international trade, ensuring compliance with various international regulations and standards.
Types of Export Import Licenses
License Type
Description
IEC (Import Export Code)
The Import Export Code (IEC) is a 10-digit unique identification number issued by the DGFT. It is mandatory for any entity engaging in international trade.
Advance Authorization Scheme
Allows duty-free import of inputs required for the export of products, subject to export obligations.
Export Promotion Capital Goods Scheme (EPCG)
This scheme allows import of capital goods at zero duty for export production purposes.
Duty Drawback Scheme
Provides duty refunds on customs duties paid on goods that are exported, helping businesses lower their costs.
Benefits of Export Import License
Benefit
Description
Access to International Markets
With an Export Import license, businesses can expand their reach and export their products to global markets.
Tax Benefits
Businesses can enjoy benefits such as duty drawbacks, exemption from customs duty, and subsidies under government schemes.
Credibility and Legitimacy
Holding an EXIM license adds credibility to your business in the eyes of international partners, suppliers, and clients.
Trade Facilitation
The license simplifies the import-export process, ensuring that businesses comply with global trade regulations and standards.
Eligibility Criteria for EXIM License
Criteria
Description
Business Entity
The applicant must be a legally registered entity, such as a company, partnership, or proprietorship.
Resident of India
The applicant must be an Indian citizen or a person of Indian origin.
Valid PAN Card
A valid PAN card is required as a proof of identity and for tax-related documentation.
No Prohibition
The applicant must not be prohibited from engaging in export or import activities by any government regulations.
Documents Required for Export Import License
Document
Details
PAN Card
A valid Permanent Account Number (PAN) card of the applicant.
Passport-sized Photographs
Recent passport-sized photographs of the applicant or authorized person.
Aadhaar Card
The Aadhaar card of the individual applying for the license or of the directors in case of a company.
Business Registration Proof
Proof of registration such as a partnership deed, certificate of incorporation, or trade license.
Bank Account Details
The applicant must provide bank details to ensure smooth transactions in the case of payments or receipts.
Import Export Code (IEC) Application Form
A completed application form for IEC submission to DGFT.
Process of Obtaining an Export Import License
Step
Description
Step 1: Register with DGFT
Apply to the Directorate General of Foreign Trade (DGFT) by creating an account on their website.
Step 2: Submit Documents
Submit the required documents, such as PAN card, business registration proof, Aadhaar, and others.
Step 3: Application for IEC
Fill and submit the IEC application form on the DGFT portal. The application is reviewed for accuracy.
Step 4: Payment of Fees
Pay the application fee as per the DGFT guidelines. The payment can be made online.
Step 5: Approval
Once the application is approved, the DGFT issues the Export Import License (IEC).
Compliance and Renewal
Compliance Requirement
Details
Annual Filing
Businesses with an EXIM license need to file annual returns with DGFT, ensuring their trade activities are legal and updated.
Renewal of License
The IEC does not need to be renewed annually, but businesses must ensure that their details are up to date with DGFT.
Maintain Records
Proper record-keeping of import-export activities, bills of entry, shipping bills, and invoices is crucial for compliance.
Why Choose Sahyog Tax and Finance Advisory Limited for EXIM License?
Sahyog Tax and Finance Advisory Limited is committed to simplifying the process of obtaining an Export Import License. With our expertise, we ensure a smooth application process by assisting you in all stages—registration, documentation, application, and compliance. Our team works with the Directorate General of Foreign Trade (DGFT) to ensure your EXIM license is approved promptly and without hassle.
Contact Sahyog Tax and Finance Advisory Limited for Export Import License
This format provides a clear and organized overview of the Export Import License process, including requirements, benefits, and why Sahyog Tax and Finance Advisory Limited is a trusted partner for obtaining the license.
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