Director General of Foreign Trade
In India Rules/Regulations are made for Export – Import in Foreign Trade Policy (FTP). Presently Policy is amended for the period for 2015-20.
Import – Export is governed by Directorate General of Foreign Trade. It is a Govt. Organisation responsible for framing all policies regarding exports and imports in India. At present Foreign Trade Policy 2015-20 is applicable.
For convenience of general public certain power of DGFT have been transferred to concerned Regional Licensing Authorities (RLA) who function in their regions.
All/ Any License/ application regarding export – import lies only to DGFT/ RLA.
Any person desirous of import-export has to first take Importer Exporter Code (IEC) from concerned RLA.
DGFT has announced certain promotional measures including Duty Exemptions for promoting export in India.
We may assist you in identify the promotional measure suitable for your product, prepare applications, documents requires and take all necessary steps in getting the benefit of such promotion measure.
Advices That Will Take You Higher
Law Exim is a group of professional people, having an experience in the related field for more than 20yrs, provide their services and can assist you with regard to DGFT licensing and legal matters.
Exports from India Schemes (MEIS & SEIS)
Exports from India Schemes
There shall be following two schemes for exports of Merchandise and Services respectively:
(i) Merchandise Exports from India Scheme (MEIS).
(ii) Service Exports from India Scheme (SEIS).
Duty Credit Scrips shall be granted as rewards under MEIS and SEIS. The Duty Credit Scrips and goods imported / domestically procured against them shall be freely transferable. The Duty Credit Scrips can be used for :
(i) Payment of Customs Duties for import of inputs or goods, except items listed in Appendix 3A.
(ii) Payment of excise duties on domestic procurement of inputs or goods, including capital goods as per DoR notification.
(iii) Payment of service tax on procurement of services as per DoR notification.
(iv) Payment of Customs Duty and fee as per paragraph 3.18 of this Policy.
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 MEIS.
Merchandise Exports from India Scheme (MEIS) as per Import Export Policy 2015-20 (FTP 2015-20)
Objective of Merchandise Exports from India Scheme (MEIS) under Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goods/products, which are produced/manufactured in India, especially those having high export intensity, employment potential and thereby enhancing India’s export competitiveness.
Entitlement under MEIS
Exports of notified goods/products with ITC [HS] code, to notified markets as listed in Appendix 3B Table I, shall be rewarded under MEIS. Appendix 3B Table 2 also lists the rate(s) of rewards on various notified products [ITC (HS) code wise]. The basis of calculation of reward would be on realised FOB value of exports in free foreign exchange, or on FOB value of exports as given in the Shipping Bills in free foreign exchange, whichever is less, unless otherwise specified.
Ineligible categories under MEIS
The following exports categories /sectors shall be ineligible for Duty Credit Scrip entitlement under MEIS
(i) MEIS not available for EOUs / EHTPs / BTPs/ STPs who are availing direct tax benefits / exemption.
(ii)MEIS not available for Supplies made from DTA units to SEZ units
(iii) MEIS not available for Export of imported goods covered under paragraph 2.46 of FTP
(iv) MEIS not available for Exports through trans-shipment, meaning thereby exports that are originating in third country but transshipped through India;
(v) MEIS not available for Deemed Exports;
(vi) MEIS not available for SEZ/EOU/EHTP/BPT/FTWZ products exported through DTA units;
(vii) MEIS not available for Items, which are restricted or prohibited for export under Schedule-2 of Export Policy in ITC (HS), unless specifically notified in Appendix 3B.
(viii) MEIS not available for Service Export.
(ix) MEIS not available for red sanders and beach sand.
(x) MEIS not available for export products which are subject to Minimum export price or export duty.
(xi) MEIS not available for diamond Gold, Silver, Platinum, other precious metal in any form including plain and studded jewellery and other precious and semi-precious stones.
(xii) MEIS not available for ores and concentrates of all types and in all formations.
(xiii) MEIS not available for cereals of all types.
(xiv) MEIS not available for sugar of all types and all forms.
(xv) MEIS not available for crude / petroleum oil and crude / primary and base products of all types and all formulations.
(xvi) MEIS not available for export of milk and milk products.
(xvii) MEIS not available for export of Meat and Meat Products.
(xviii) MEIS not available for products wherein precious metal/diamond are used or Articles which are studded with precious stones.
(xix) MEIS not available for exports made by units in FTWZ.2018-02-20T17:00:36
Objective of Service Exports from India Scheme (SEIS) is to encourage export of notified Services from India.
(1) Service Providers of notified services, located in India, shall be rewarded under SEIS, subject to conditions as may be notified. Only Services rendered in the manner as per Para 9.51(i) and Para 9.51(ii) of this policy shall be eligible. The notified services and rates of rewards are listed in Appendix 3D for SEIS
(2) Such service provider should have minimum net free foreign exchange earnings of US$15,000 in preceding financial year to be eligible for Duty Credit Scrip. For Individual Service Providers and sole proprietorship, such minimum net free foreign exchange earnings criteria would be US$10,000 in preceding financial year.
(3) Payment in Indian Rupees for service charges earned on specified services, shall be treated as receipt in deemed foreign exchange as per guidelines of Reserve Bank of India. The list of such services is indicated in Appendix 3E.
(4) Net Foreign exchange earnings for the scheme are defined as under:
Net Foreign Exchange = Gross Earnings of Foreign Exchange minus Total expenses / payment / remittances of Foreign Exchange by the IEC holder, relating to service sector in the Financial year.
(5) If the IEC holder is a manufacturer of goods as well as service provider, then the foreign exchange earnings and Total expenses / payment / remittances shall be taken into account for service sector only.
(6) In order to claim reward under the scheme, Service provider shall have to have an active IEC at the time of rendering such services for which rewards are claimed.
Ineligible categories under SEIS
(1) SEIS not availbale for Foreign exchange remittances other than those earned for rendering of notified services would not be counted for entitlement. Thus, other sources of foreign exchange earnings such as equity or debt participation, donations, receipts of repayment of loans etc. and any other inflow of foreign exchange, unrelated to rendering of service, would be ineligible.
(2) Following shall not be taken into account for calculation of entitlement under the SEIS scheme
(a) Foreign Exchange remittances:
Related to Financial Services Sector
(i) SEIS not applicable for raising of all types of foreign currency Loans;
(ii) SEIS not applicable for export proceeds realization of clients;
(iii) SEIS not applicable for Issuance of Foreign Equity through ADRs / GDRs or other similar instruments;
(iv) SEIS not applicable for Issuance of foreign currency Bonds;
(v) SEIS not applicable for Sale of securities and other financial instruments; (vi) Other receivables not connected with services rendered by financial institutions; and
SEIS not applicable for Earning through contract/regular employment abroad (e.g. labour remittances);
(b) SEIS not applicable for Payments for services received from EEFC Account;
(c) SEIS not applicable for Foreign exchange turnover by Healthcare Institutions like equity participation, donations etc.
(d) SEIS not applicable for Foreign exchange turnover by Educational Institutions like equity participation, donations etc.
(e) SEIS not applicable for Export turnover relating to services of units operating under SEZ / EOU / EHTP / STPI / BTP Schemes or supplies of services made to such units;
(f) SEIS not applicable for Clubbing of turnover of services rendered by SEZ / EOU /EHTP / STPI / BTP units with turnover of DTA Service Providers;
(g) SEIS not applicable for Exports of Goods.
(h) SEIS not applicable for Foreign Exchange earnings for services provided by Airlines, Shipping lines service providers plying from any foreign country X to any foreign country Y routes not touching India at all.
(i) SEIS not applicable for Service providers in Telecom Sector2018-02-20T17:09:22
Any person, firm or company desirous in entering into import export business requires Import Export Code unless specifically exempted. It is a unique number given to an importer and exporter by the concerned authority. If you are not a minor, lunatic or blacklisted person then you can easily apply for Import Export Code. A particular firm is eligible for only one Import Export Code. One has to apply before the concerned JDGFT for obtaining an IEC number for Export / Import. Import Export Code Service Delhi, IEC Services Delhi, Import Export Code Service in Delhi, IEC Services in Delhi
The requisites to apply for the IEC number are as follows :
Application Form NO. ANF2A, duly filled, in duplicate.
Bank Certificate with attested photo, as per Appendix 18A of Form
Two passport size photographs of the applicant
Copy of Pan Card Number
Draft of RS.250/- favoring concerned JDGFT
Self addressed envelope duly stamped with RS.30/-stamp.
In case the applicant is a partnership firm, apart from above requisites following IS also required
Self attested copy of partnership deed
An authority in favor of partner to act on behalf of the firm for obtaining IEC IS also required.
In case the applicant is a company, apart from above requisites following is also required.
Memorandum of articles of association
Details of directors at the time of applying for IEC number
Resolution in favor of a director to act on behalf of the company for obtaining IEC number.
We Assist You In :
Obtaining IEC number
Revalidation of existing IEC number
Modification in IEC with regard to any change in pre-existing address, partners, etc.2018-02-20T16:54:20
“Deemed Exports” refer to those transactions in which goods supplied do not leave country, and payment for such supplies is received either in Indian rupees or in free foreign exchange. Supply of goods as specified in Paragraph 7.02 below shall be regarded as “Deemed Exports” provided goods are manufactured in India.
Categories of Supply
Supply of goods under following categories (a) to (d) by a manufacturer and under categories (e) to (h) by main / sub-contractors shall be regarded as “Deemed Exports”:
A. Supply by manufacturer:
(a) Supply of goods against Advance Authorisation / Advance Authorisation for annual requirement / DFIA;
(b) Supply of goods to EOU / STP / EHTP / BTP;
(c) Supply of capital goods against EPCG Authorisation;
(d) Supply of marine freight containers by 100% EOU (Domestic freight containers-manufacturers) provided said containers are exported out of India within 6 months or such further period as permitted by customs
B. Supply by main / sub-contractor (s):
(e) (i) Supply of goods to projects financed by multilateral or bilateral Agencies / Funds as notified by Department of Economic Affairs (DEA), MoF, where legal agreements provide for tender evaluation without including customs duty.
(ii) Supply and installation of goods and equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies/Funds as notified by Department of Economic Affairs (DEA), MoF, for which bids have been invited and evaluated on the basis of Delivered Duty Paid (DDP) prices for goods manufactured abroad.
(iii) Supplies covered in this paragraph shall be under International Competitive Bidding (ICB) in accordance with procedures of those Agencies / Funds.
(iv) A list of agencies, covered under this paragraph, for deemed export benefits, is given in Appendix 7A.2018-02-20T17:07:19
An Advance Authorisation is issued to allow duty free import of inputs, which are physically incorporated in export product (making normal allowance for wastage). In addition, fuel, oil, energy, catalysts which are consumed/ utilized to obtain export product, may also be allowed.
Under Advance authorization Scheme AAS, exporter can import raw-materials and related inputs under 100% duty exemption schemes. The importer has to approach DGFT who is the licensing authority under this category. Government fixes value addition as per the standard input-output norms. Once you fulfills the export obligation with the licensing authority, you can sell the manufactured products in domestic market.
Would you like to add more information about this scheme – Advance Authorization Scheme for importers and exporters in India? Share your knowledge and experience below about Advance Authorization Scheme for exports and Importers in India.2018-02-20T16:56:28
The objective of the EPCG Scheme is to facilitate import of capital goods for producing quality goods and services to enhance India’s export competitiveness.
5.01 EPCG Scheme
(a) EPCG Scheme allows import of capital goods for pre-production, production and post-production at Zero customs duty. Alternatively, the Authorisation holder may also procure Capital Goods from indigenous sources in accordance with provisions of paragraph 5.07 of FTP. Capital goods for the purpose of the EPCG scheme shall include:
(i) Capital Goods as defined in Chapter 9 including in CKD/SKD condition thereof;
(ii) Computer software systems;
(iii) Spares, moulds, dies, jigs, fixtures, tools & refractories for initial lining and spare refractories; and
(iv) catalysts for initial charge plus one subsequent charge.
(b) Import of capital goods for Project Imports notified by Central Board of Excise and Customs is also permitted under EPCG Scheme.
(c) Import under EPCG Scheme shall be subject to an export obligation equivalent to 6 times of duty saved on capital goods, to be fulfilled in 6 years reckoned from date of issue of Authorisation.2018-02-20T17:04:34
The exports by IEC holders under the following categories shall be granted double weightage for calculation of export performance for grant of status.
(i) Micro, Small & Medium Enterprises (MSME) as defined in Micro, Small & Medium Enterprises Development (MSMED) Act 2006.
(ii) Manufacturing units having ISO/BIS.
(iii) Units located in North Eastern States including Sikkim and Jammu & Kashmir.
(iv) Units located in Agri Export Zones.
Double Weightage shall be available for grant of One Star Export House Status category only. Such benefit of double weightage shall not be admissible for grant of status recognition of other categories namely Two Star Export House, Three Star Export House, Four Star export House and Five Star Export House.
A shipment can get double weightage only once in any one of above categories.
Other conditions for grant of status
Export performance of one IEC holder shall not be permitted to be transferred to another IEC holder. Hence, calculation of exports performance based on disclaimer shall not be allowed.
Exports made on re-export basis shall not be counted for recognition.
Export of items under authorization, including SCOMET items, would be included for calculation of export performance.
Duty Free Import Authorisation is issued to allow duty free import of inputs. In addition, import of oil and catalyst which is consumed / utilised in the process of production of export product, may also be allowed.
Provisions of paragraphs 4.12, 4.18, 4.20, 4.21 and 4.24 of FTP shall be applicable to DFIA also.
Duties Exempted and Admissibility of Cenvat and Drawback
(i) Duty Free Import Authorisation shall be exempted only from payment of Basic Customs Duty.
(ii) Additional customs duty/excise duty, being not exempt, shall be adjusted as CENVAT credit as per DoR rules.
(iii) Drawback as per rate determined and fixed by Central Excise authority shall be available for duty paid inputs, whether imported or indigenous, used in the export product. However, in case such drawback is claimed for inputs not specified in SION, the applicant should have indicated clearly details of such duty paid inputs also in the application for Duty Free Import Authorization, and as per the details mentioned in the application, the Regional Authority should also have clearly endorsed details of such duty paid inputs in the condition sheet of the Duty Free Import Authorization.
(i) Duty Free Import Authorisation shall be issued on post export basis for products for which Standard Input Output Norms have been notified.
(ii) Merchant Exporter shall be required to mention name and address of supporting manufacturer of the export product on the export document viz. Shipping Bill / Airway Bill / Bill of Export / ARE-1 / ARE-3.2018-02-20T16:58:36