7
General Provisions
Regarding Export/ Import
The Foreign Trade Policy Book notified by the Govt has
the following 3 Parts :
a. Foreign Trade Policy
b. Hand Book of Procedures and Appendices
c. ITC ( HS ) classification
[ Indian Trade Classification ( Harmonized System ) ]
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General Provisions
Regarding Import / Export
Part 1 ie. Foreign Trade Policy is a basic document on
the Import / Export Policy of the Govt of India
Part 2 ie. Handbook of Procedures contains the
detailed procedures and appendices which are
required to implement the policy.
Part 3 ie. ITC (HS) classification of Import Export
items is a voluminous book covering all items traded
in the International arena with an 8 digit level
classification number.
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General Provisions
Regarding Import / Export
The ITC (HS) classification book provides the
exact policy regarding import or export of every
item coming under International Trade.
Generally Exports / Imports are allowed freely to /
from any country . However the products for
exports / imports are classified as under :
1. Prohibited ( Banned ) Items
2. Channelised Items ( Items to be traded by State Trading Enterprises)
3. Restricted Items
4. Free Items [ OGL (Open General License ) Items]
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General Provisions
Regarding Export/ Import
1. Prohibited or Banned Items are those items which are prohibited or banned for
imports / exports. It can be for a product , or export or import to / from a particular
country.This restriction can be even for a particular period only .
2. Channelised items are those items which can be only imported or exported by
State ( Govt ) Trading Enterprises.
3. Restricted items are those items which are restricted for import and export. Many
of these items can be imported or exported after obtaining a License / Permit from
DGFT. This License can be for a specific product or for a specified period.
4. Free ( OGL ) items are those items which can be freely imported or exported
without any restriction. After the liberalisation of Trade almost all items all items
are coming under OGL.
From the ITC ( HS ) classification Book, one can find out whether a particular item
comes under Prohibited, Channelised, Restricted or OGL.
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Pre-Requisite of Import / Export
Any person who is desirous of importing/ exporting must
have an importer/ exporter code number. (IEC Number )
obtained from DGFT. Without IEC Number no person can
export or import. ( However, Govt Departments and
diplomatic Personnel are exempted from obtaining IEC
Number. )
In fact the definition of Importer / Exporter is that a person who imports/
exports or intend to import / export and holds an IEC Number.
Importers and Exporters who are holding the IE Code
Number should also obtain a RCMC ( Registration cum
Membership Certificate ) from the concerned Export
Promotion Council and / or FIEO for obtaining the
benefits offered by the Govt of India for Export Import
business.
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Pre-Requisite of Import / Export
Procedure to obtain IEC Number :
1. Every applicant who would like to become an Importer/Exporter
should apply to the concerned Joint DGFT in the prescribed
format .
2. As per the Foreign Trade Policy 2009-2014 the following
documents are to be submitted along with the application.
(i) Profile of the applicant in the prescribed format, (ii) DD for Rs
250 , (iii) Certificate from the Bank in the prescribed format,
(iv) Two copies of the Passport size photograph attested by the
bank , (v) A copy of the PAN (Permanent Account Number) Card
attested by the applicant , ( vi ) Application for IDENTITY CARD
with 2 Passport size photographs with a DD for Rs200 , (vii) A
self addressed envelope with postage stamp of Rs30 .
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Pre-Requisite of Import / Export
Procedure to obtain RCMC
The importers and Exporters have to obtain a Registration cum
Membership Certificate from the concerned Export Promotion
Council / Commodity Board / Export Development Authority for
availing the Export / Import benefits and incentives offered by
the Govt. They can also take RCMC from FIEO. All Status
Holders of Imports and Exports should compulsorily obtain the
RCMC from FIEO. The admission fee and the annual
subscription to Export Promotion Councils and FIEO vary
depending upon the value of Imports / Exports . The application
for RCMC is to be submitted in the prescribed format along with
copy of IEC Number.
The validity period of RCMC is 5 years.
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