Foreign Trade Policy
December 2018
Background
Indiarsquos Foreign Trade Policy 2015-20 was announced on 1st April 2015 with the objective to supportmanufacturing and service sectors with special emphasis on improving ease of doing business in the countryThis five year foreign trade policy introduces new schemes for exporters of India including the MerchandiseExports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) Special focus on tradefacilitation is also one of the features of Foreign Trade Policy of India 2015-20 The Ministry of Commerce andIndustry undertook a mid-term review of the FTP post which a revised FTP 2015ndash20 was released on 5December 2017 The highlights included 24x7 Customs clearance facility for all types of bills of entry increasedMEIS and SEIS rates for specified products and a new Self Ratification Scheme
The objective of this toolkit is to help investors understand the Export ndashImport landscape in India as a ready touse reference toolkit with information on the existing ecosystem (including key stakeholders includingGovernment and supporting agencies) various schemes and applicable governance and legislative frameworkprocesses and procedures to start trading in India including setting up business and application processes toavail various incentives under MEIS SEIS and other schemes The toolkit also covers details on existing tradefacilitation agencies in India and mechanisms for grievance dispute redressal in India Some excerpts of theForeign Trade Policy are also provided
Readers are suggested to use this toolkit as a reference guide and refer to various links for useful websites anddocuments for further reading
Abbreviations
AA Advance Authorization
ANF Aayat Niryat Form
ASEAN Association of South- East Asian Nations and
other Allied Activities
ACD Additional Custom Duty
ASIDE Assistance to States for Developing Export Infrastructure
BCD Basic Customs Duty
BOA Board of Approval
BTP Bio-Technology Park
CAPEXIL Chemical and Allied Export Promotion Council of India
CBEC Central Board of Excise and Customs
CCI Chamber of Commerce and Industry
CDDO Cheque Drawing and Disbursing Officer
CEPA Comprehensive Economic Partnership Agreement
CIN Corporate Identification Number
CITD Capacity Building Initiative for Trade Development
CVD Countervailing Duty
DBK Drawback schedule
DEPB Duty Entitlement Passbook Scheme
DFRC Duty Free Replenishment Certificate
DGAD Directorate General Of Anti- Dumping and Allied Duties
DGCIampS Directorate General CommerceIntelligence and Statistics
DGFT Directorate General of Foreign Trade
DGSampD Director General of Supply and Disposal
DIN Director Identification Number
DIPP Department of Industrial Policy ampPromotion
DOC Department of Commerce
DPIN Designated Partnership IdentificationNumber
DTA Domestic Tariff Area
ECB External Commercial Borrowing
EHTP Electronic Hardware Technology Park
EOU Export Oriented Unit
EPCG Export Promotion of Capital Goods
EPZ Export Processing Zone
EXIM Export Import
Abbreviations
FIEO Federation of Import Export Organisation
FOB Free on Board
FTWZ Free Trade and Warehousing Zones
GATS General Agreement on Trade in Services
GOI Government of India
IEC Import Export Code
IPCS Institute Peace and Conflict Studies
ITC (HS) Indian Trade Classification based on Harmonised System
Of Coding
LAC Latin American and Caribbean
LCS Land Customs Station
LLPIN Limited Liability Partnership Identification Number
LOC Letter of Credit
MERCOSUR South American Trade Bloc
MEIS Merchandise Export from India Scheme
NAFTA North American Free Trade Agreement
PAN Permanent Account Number
PSU Public Sector Undertaking
PTA Preferential Trade Agreement
RCMC Registration cum Membership Certificate
ROO Rules of Origin
SAD Special Additional Duty
SAFTA South Asian Free Trade Area
SEIS Services Exports from India Scheme
SEZ Special Economic Zone
SPS Sanitary and Phytosanitary measures
STA Special Trade Agreement
STC State Trading Corporation of India (Ltd)
STEs State Trading Enterprises
TBT Technical Barriers to Trade
TRIPS Trade Related Aspects of Intellectual
Property Rights
VAT Valued Added Tax
WTO World Trade Organisation
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Ecosystem MappingGovernment bodies and agencies involved
Dissects and analyses information on Indiarsquos trade performance with focus on improvement of exports
Deals with international trade in tea coffee rubber and notifiedspices Also implements statutory and policy framework forproduction development and marketing of related commodities
Is responsible for matters related to agriculture NAMA disputes andrules SPS TBT TRIPS environment labour amp services tradefacilitation wrt functions of WTO amp international bodies
Deals with trade promotion policy negotiation amp other relatedactivities with regions amp countries (Africa NAFTA Latin AmericaEurope ASEAN etc)
Facilitates amp promotes exports in agriculture marine leather amp sportsgoods gems amp jewellery engineering goods etc
Deals with appointments for various positions maintenance of service records fixation of pay and grantof leave gratuity etc for Gazetted and Non-gazetted Officers
Preparation amp monitoring of budget of the Department of Commerce advice and review of financialexpenditure monitoring of schemes release of grants etc
Cadre management administration vigilance policies amp procedures relating to purchase inspections amppayments etc
Responsible for export and market development assistance tradefinance implementation amp monitoring of lsquoAssistance to States forDeveloping Export Infrastructure and other Allied Activities (ASIDE)rsquomatters related to EPZs EOUs etc
Ministry of Commerce and Industry
International Trade Policy Division
Foreign Trade Territorial Division
Export Products Division
Export Industries Division
Export Services Division
Economic Division
Administration amp General Service Division
Finance Division
Supply Division
Ecosystem MappingGovernment bodies and agencies involved
Responsible for implementing FTP with the aim of promoting exports DGFT also issues licenses to exporters and monitors their obligations All ROs provide facilitation to exporters wrt International Trade ie WTO agreements Rules of Origin and anti-dumping issues etc Website httpdgftgovin
DIRECTORATE GENERAL OF FOREIGN TRADE (DGFT)
Functions as the executive arm of the Supply Division of the Department of Commerce for conclusion of Rate Contracts for common user items procurement of stores etc
DIRECTORATE GENERAL OF SUPPLIES AND DISPOSALS
(DGSD)
Responsible for carrying out investigations and recommending where required under the Customs Tariff Act the amount of anti-dumping duty countervailing duty on the identified articles as would be adequate to remove injury to the domestic industry
DIRECTORATE GENERAL OF ANTI-DUMPING AND
ALLIED DUTIES (DGAD)
Entrusted with the work of collecting compiling and publishing disseminating trade statistics and various types of commercial information required by the policy makers researchers importers exporters traders and overseas buyers
DIRECTORATE GENERAL OF COMMERCIAL
INTELLIGENCE amp STATISTICS(DGCIampS)
The payment amp accounting of Supply Division including those of DGSampD are performed by the Office of Chief Controller of Accounts (Supply Division) under the Departmentalized Accounting System Payment to suppliers are made through this organization at New Delhi Kolkata Mumbai and Chennai
PAY AND ACCOUNT OFFICE (SUPPLY COMMERCE AND
TEXTILES)
The main objectives of the SEZ is generation of additional economic activity promotion of exports of goods and services promotion of investment from domestic and foreign sources creation of employment opportunities along with the development of infrastructure facilities
SPECIAL ECONOMIC ZONES
Ecosystem MappingSupporting Agencies PSUs handling EXIM
Undertakes exports imports of a diverse range of items tofrom countries all over the world Also monitors counter trade commitments against Government purchases and import of technical and scientific equipment on behalf of Forensic Science Laboratories Paramilitary Organisations etc
STATE TRADING CORPORATION (STC)
Created in 1963 as an independent entity on separation from State Trading Corporation of India Ltd primarily to deal in exports of minerals and ores and imports of non-ferrous metals MMTC also imports and export various other items like steel diamonds bullion agro hydrocarbon etc
An export promotion organization seeking to improve the competitiveness of the Indian exports by providing them with credit insurance covers It manages credit risks through insurance covers for exporters as well as banks worthiness analysis of buyers bankers countries etc
EXPORT CREDIT GUARANTEE
CORPORATION OF INDIA LIMITED
A premier trade promotion agency of India and acts as a catalyst for growth of Indiarsquos trade through participation in Indian and international trade fairs supporting in access to market for SMEs dissemination of trade information for e-commerce etc
INDIA TRADE PROMOTION
ORGANISATION
METALS amp MINERALS TRADING CORPORATION
OF INDIA(MMTC)
Deals with export of projects engineering equipment amp manufactured goods defence equipment amp stores import of industrial raw materials bullion and agro commodities diversification in export of non-engineering items edible oils steel scraps etc and structuring counter trade special trading
PEC LIMITED
Ecosystem MappingSupporting Agencies Autonomous bodies
Responsible for development of the marine products industry with special reference to exports Its focus area includes facilitating enhanced export of marine products from the country
MARINE PRODUCTS EXPORT DEVELOPMENT
AUTHORITY
Actively engaged in development of markets and up gradation of infrastructure to promote export of agro products Provides financial assistance to the registered exporters It supervises export promotion of 14 agricultural and processed food product groups listed in the Schedule to the APEDA Act
5 statutory Commodity Boards under the Department of Commerce are responsible for production development and export of tea coffee rubber spices and tobaccoCOMMODITY BOARDS
Role of EIC is to ensure that products notified under the Export (Quality Control and Inspection) Act 1963 are meeting the requirements of the importing countries in respect of their quality and safetyEXPORT INSPECTION
COUNCIL(EIC)
AGRICULTURAL amp PROCESSED FOOD
PRODUCTS EXPORT DEVELOPMENT AUTHORITY
Indian Institute of Plantations Management Indian Institute of Packaging amp Indian Institute of Foreign Trade are set up as autonomous institutions by the Ministry of Commerce Rstablished for education research training development and consultancy to the industry and agencies in these sectors
EDUCATION amp RESEARCH INSTITUTES
EEPC India is the premier trade and investment promotion organization in India It is sponsored by the Ministry of Commerce amp Industry It is an advisory body that actively contributes to the policies of Government of India and acts as an interface between the engineering industry and the Government
ENGINEERING EXPORT PROMOTION COUNCIL
(EEPC)
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
5
7
3
4
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of specific categories of goods bull Import of samples bull (a) No Authorisation shall be required for Import of bonafide technical and trade samples of items restricted in ITC (HS)
except vegetable seeds bees and new drugs Samples of tea not exceeding INR 2000 (CIF) in one consignment shall be allowed without an Authorisation by any person connected with Tea industry
bull (b) Duty free import of samples upto INR 300000 for all exporters shall be allowed as per terms and conditions of Customs Notification
bull Re ndash import of goods repaired abroad ndash Capital goods equipment components parts and accessories whether imported or indigenous except those 42
restricted under ITC (HS) may be sent abroad for repairs testing quality improvement or upgradation or standardization of technology and re-imported without an Authorisation
bull Import of goods used in projects abroad ndash Project contractors after completion of projects abroad may import without an Authorisation goods including capital
goods used in the project provided they have been used for at least one year bull Import Policy for Second Hand Goods
Category Conditions
i Personal computers laptops including refurbished re-conditioned spares
ii Photocopier machines Digital multifunction Print amp Copying Machines
iii Air conditioners
iv Diesel generating sets
Restricted ( Importable against authorization)
Refurbished re-conditioned spares of Capital Goods Free (Subject to production of Chartered Engineer
certificate to the effect that such spares have at
least 80 residual life of original spare)
All other second hand capital goods other than (a) amp (b) above Free
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of restricted goods An application for grant of an Authorisation for import or export of items mentioned as lsquoRestrictedrsquo in ITC (HS) may be made to RA with a copy to DGFT Hqrs in ANF 2M along with documents prescribed therein Original application along with Treasury Receipt (TR) Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA
Restricted item Authorisation may be granted by DGFT or any other RA authorised by him in this behalf
Import of Restricted Items Required by Hotels Restaurants Travel Agents Tour Operators and other Specified Categories bull Hotels including tourist hotels recognised by Director General of Tourism Government of India or a State Government shall
be entitled to import Authorisation upto a value of 25 of foreign exchange earned by them from foreign tourists during preceding licensing year for import of essential goods related to hotel and tourism industry
bull Travel agents tour operators restaurants and tourist transport operators and other units for tourism like adventure wildlife and convention units recognized by Director General of Tourism Government of India shall be entitled to import authorisation up to a value of 10 of foreign exchange earned by them during preceding licensing year for import of essential goods which are restricted for imports related to travel and tourism industry including office and other equipmentrequired for their own professional use
bull Such imported goods may be transferred after 2 years with permission of DGFT No permission for transfer will be required in case the imported goods are re-exported However re-export shall be subject to all conditionality or requirement of licence or permission as may be required under Schedule II of ITC (HS)
bull An application for grant of an Authorisation to be made in ANF 2 M to DGFT through Director of Tourism Government of India who will forward application to RA concerned along with their recommendations
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of Restricted items for RampD by units of Government
All restricted items and items permitted to be imported by STEs except live animals required for RampD purpose may be imported without an Authorisation by Government recognized Research and Development units
Import for export a) Goods imported in accordance with FTP may be exported in same or substantially the same form without an
Authorisation provided that item to be imported or exported is not restricted for import or export in ITC (HS)
bull (b) Goods including capital goods (both new and second hand) may be imported for export provided
ndash Importer clears goods under Customs Bond
ndash Goods are freely exportable ie are not ldquorestrictedrdquo ldquoprohibitedrdquo subject to ldquoexclusive trading through State
Trading Enterprisesrdquo or any conditionality requirement as may be required under Schedule 2 ndash Export Policy of the
ITC (HS)
ndash Export is against freely convertible currency
bull (c) Goods in (b) above will include lsquorestrictedrsquo goods for import (except lsquoprohibitedrsquo items)
bull Export of repaired goods ldquoGoods or parts thereof except restricted under ITC (HS) on being exported and found defective
damaged or otherwise unfit for use may be imported for repair and subsequent re-export Such goods shall be allowed
clearance without an Authorisation and in accordance with customs notification unless imported exclusively for undertaking
root cause analysis testing and evaluation purpose
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Duties and GST- Applicability to International Trade
GST- Imports Import of goods into India is treated as interstate supply Therefore IGST is levied on import of goodsAfter introduction of GST CVD and SAD have been replaced with Integrated Goods and Service Tax IGSTIGST and Basic Customs Duty are the main components in determining the total import duty payable to customs at the time of Import of Goods into IndiaIn imports IGST is computed on transaction value of imported goods plus duties and taxes etc charged under any statute other than the GST Law
GST- ExportsExports are treated as zero rated supplies No tax will be payable on exports of goods or services however credit of input taxcredit will be available and same will be available as refund to the exporters
Duties Applicable to ImportsBasic Customs DutyAdditional Duty of customsAntidumping DutyTariff DutySafeguard DutyIGST Levy
These duties are not applicable to all imports
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Legislative amp governance framework Schemes MEIS amp SEIS
a) MEISb) SEIS
Duty exemption Schemesa) Advance Authorization Annual Advance Authorizationb) Duty Free Import Authorization
Raw materials amp inputs
Allows duty free import of raw materials for export production
Export Promotion Capital Goods Scheme (EPCG Scheme)Capital Goods amp
Machinery
Allows duty free import of machinery amp equipment for export production amp services
Finished GoodsDuty Credit scrips are provided against exports that can be used to pay duties taxes
SEZs EOUs FTWZsInternational
Markets
TED exemptions refund for DTAs
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Background
Indiarsquos Foreign Trade Policy 2015-20 was announced on 1st April 2015 with the objective to supportmanufacturing and service sectors with special emphasis on improving ease of doing business in the countryThis five year foreign trade policy introduces new schemes for exporters of India including the MerchandiseExports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS) Special focus on tradefacilitation is also one of the features of Foreign Trade Policy of India 2015-20 The Ministry of Commerce andIndustry undertook a mid-term review of the FTP post which a revised FTP 2015ndash20 was released on 5December 2017 The highlights included 24x7 Customs clearance facility for all types of bills of entry increasedMEIS and SEIS rates for specified products and a new Self Ratification Scheme
The objective of this toolkit is to help investors understand the Export ndashImport landscape in India as a ready touse reference toolkit with information on the existing ecosystem (including key stakeholders includingGovernment and supporting agencies) various schemes and applicable governance and legislative frameworkprocesses and procedures to start trading in India including setting up business and application processes toavail various incentives under MEIS SEIS and other schemes The toolkit also covers details on existing tradefacilitation agencies in India and mechanisms for grievance dispute redressal in India Some excerpts of theForeign Trade Policy are also provided
Readers are suggested to use this toolkit as a reference guide and refer to various links for useful websites anddocuments for further reading
Abbreviations
AA Advance Authorization
ANF Aayat Niryat Form
ASEAN Association of South- East Asian Nations and
other Allied Activities
ACD Additional Custom Duty
ASIDE Assistance to States for Developing Export Infrastructure
BCD Basic Customs Duty
BOA Board of Approval
BTP Bio-Technology Park
CAPEXIL Chemical and Allied Export Promotion Council of India
CBEC Central Board of Excise and Customs
CCI Chamber of Commerce and Industry
CDDO Cheque Drawing and Disbursing Officer
CEPA Comprehensive Economic Partnership Agreement
CIN Corporate Identification Number
CITD Capacity Building Initiative for Trade Development
CVD Countervailing Duty
DBK Drawback schedule
DEPB Duty Entitlement Passbook Scheme
DFRC Duty Free Replenishment Certificate
DGAD Directorate General Of Anti- Dumping and Allied Duties
DGCIampS Directorate General CommerceIntelligence and Statistics
DGFT Directorate General of Foreign Trade
DGSampD Director General of Supply and Disposal
DIN Director Identification Number
DIPP Department of Industrial Policy ampPromotion
DOC Department of Commerce
DPIN Designated Partnership IdentificationNumber
DTA Domestic Tariff Area
ECB External Commercial Borrowing
EHTP Electronic Hardware Technology Park
EOU Export Oriented Unit
EPCG Export Promotion of Capital Goods
EPZ Export Processing Zone
EXIM Export Import
Abbreviations
FIEO Federation of Import Export Organisation
FOB Free on Board
FTWZ Free Trade and Warehousing Zones
GATS General Agreement on Trade in Services
GOI Government of India
IEC Import Export Code
IPCS Institute Peace and Conflict Studies
ITC (HS) Indian Trade Classification based on Harmonised System
Of Coding
LAC Latin American and Caribbean
LCS Land Customs Station
LLPIN Limited Liability Partnership Identification Number
LOC Letter of Credit
MERCOSUR South American Trade Bloc
MEIS Merchandise Export from India Scheme
NAFTA North American Free Trade Agreement
PAN Permanent Account Number
PSU Public Sector Undertaking
PTA Preferential Trade Agreement
RCMC Registration cum Membership Certificate
ROO Rules of Origin
SAD Special Additional Duty
SAFTA South Asian Free Trade Area
SEIS Services Exports from India Scheme
SEZ Special Economic Zone
SPS Sanitary and Phytosanitary measures
STA Special Trade Agreement
STC State Trading Corporation of India (Ltd)
STEs State Trading Enterprises
TBT Technical Barriers to Trade
TRIPS Trade Related Aspects of Intellectual
Property Rights
VAT Valued Added Tax
WTO World Trade Organisation
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Ecosystem MappingGovernment bodies and agencies involved
Dissects and analyses information on Indiarsquos trade performance with focus on improvement of exports
Deals with international trade in tea coffee rubber and notifiedspices Also implements statutory and policy framework forproduction development and marketing of related commodities
Is responsible for matters related to agriculture NAMA disputes andrules SPS TBT TRIPS environment labour amp services tradefacilitation wrt functions of WTO amp international bodies
Deals with trade promotion policy negotiation amp other relatedactivities with regions amp countries (Africa NAFTA Latin AmericaEurope ASEAN etc)
Facilitates amp promotes exports in agriculture marine leather amp sportsgoods gems amp jewellery engineering goods etc
Deals with appointments for various positions maintenance of service records fixation of pay and grantof leave gratuity etc for Gazetted and Non-gazetted Officers
Preparation amp monitoring of budget of the Department of Commerce advice and review of financialexpenditure monitoring of schemes release of grants etc
Cadre management administration vigilance policies amp procedures relating to purchase inspections amppayments etc
Responsible for export and market development assistance tradefinance implementation amp monitoring of lsquoAssistance to States forDeveloping Export Infrastructure and other Allied Activities (ASIDE)rsquomatters related to EPZs EOUs etc
Ministry of Commerce and Industry
International Trade Policy Division
Foreign Trade Territorial Division
Export Products Division
Export Industries Division
Export Services Division
Economic Division
Administration amp General Service Division
Finance Division
Supply Division
Ecosystem MappingGovernment bodies and agencies involved
Responsible for implementing FTP with the aim of promoting exports DGFT also issues licenses to exporters and monitors their obligations All ROs provide facilitation to exporters wrt International Trade ie WTO agreements Rules of Origin and anti-dumping issues etc Website httpdgftgovin
DIRECTORATE GENERAL OF FOREIGN TRADE (DGFT)
Functions as the executive arm of the Supply Division of the Department of Commerce for conclusion of Rate Contracts for common user items procurement of stores etc
DIRECTORATE GENERAL OF SUPPLIES AND DISPOSALS
(DGSD)
Responsible for carrying out investigations and recommending where required under the Customs Tariff Act the amount of anti-dumping duty countervailing duty on the identified articles as would be adequate to remove injury to the domestic industry
DIRECTORATE GENERAL OF ANTI-DUMPING AND
ALLIED DUTIES (DGAD)
Entrusted with the work of collecting compiling and publishing disseminating trade statistics and various types of commercial information required by the policy makers researchers importers exporters traders and overseas buyers
DIRECTORATE GENERAL OF COMMERCIAL
INTELLIGENCE amp STATISTICS(DGCIampS)
The payment amp accounting of Supply Division including those of DGSampD are performed by the Office of Chief Controller of Accounts (Supply Division) under the Departmentalized Accounting System Payment to suppliers are made through this organization at New Delhi Kolkata Mumbai and Chennai
PAY AND ACCOUNT OFFICE (SUPPLY COMMERCE AND
TEXTILES)
The main objectives of the SEZ is generation of additional economic activity promotion of exports of goods and services promotion of investment from domestic and foreign sources creation of employment opportunities along with the development of infrastructure facilities
SPECIAL ECONOMIC ZONES
Ecosystem MappingSupporting Agencies PSUs handling EXIM
Undertakes exports imports of a diverse range of items tofrom countries all over the world Also monitors counter trade commitments against Government purchases and import of technical and scientific equipment on behalf of Forensic Science Laboratories Paramilitary Organisations etc
STATE TRADING CORPORATION (STC)
Created in 1963 as an independent entity on separation from State Trading Corporation of India Ltd primarily to deal in exports of minerals and ores and imports of non-ferrous metals MMTC also imports and export various other items like steel diamonds bullion agro hydrocarbon etc
An export promotion organization seeking to improve the competitiveness of the Indian exports by providing them with credit insurance covers It manages credit risks through insurance covers for exporters as well as banks worthiness analysis of buyers bankers countries etc
EXPORT CREDIT GUARANTEE
CORPORATION OF INDIA LIMITED
A premier trade promotion agency of India and acts as a catalyst for growth of Indiarsquos trade through participation in Indian and international trade fairs supporting in access to market for SMEs dissemination of trade information for e-commerce etc
INDIA TRADE PROMOTION
ORGANISATION
METALS amp MINERALS TRADING CORPORATION
OF INDIA(MMTC)
Deals with export of projects engineering equipment amp manufactured goods defence equipment amp stores import of industrial raw materials bullion and agro commodities diversification in export of non-engineering items edible oils steel scraps etc and structuring counter trade special trading
PEC LIMITED
Ecosystem MappingSupporting Agencies Autonomous bodies
Responsible for development of the marine products industry with special reference to exports Its focus area includes facilitating enhanced export of marine products from the country
MARINE PRODUCTS EXPORT DEVELOPMENT
AUTHORITY
Actively engaged in development of markets and up gradation of infrastructure to promote export of agro products Provides financial assistance to the registered exporters It supervises export promotion of 14 agricultural and processed food product groups listed in the Schedule to the APEDA Act
5 statutory Commodity Boards under the Department of Commerce are responsible for production development and export of tea coffee rubber spices and tobaccoCOMMODITY BOARDS
Role of EIC is to ensure that products notified under the Export (Quality Control and Inspection) Act 1963 are meeting the requirements of the importing countries in respect of their quality and safetyEXPORT INSPECTION
COUNCIL(EIC)
AGRICULTURAL amp PROCESSED FOOD
PRODUCTS EXPORT DEVELOPMENT AUTHORITY
Indian Institute of Plantations Management Indian Institute of Packaging amp Indian Institute of Foreign Trade are set up as autonomous institutions by the Ministry of Commerce Rstablished for education research training development and consultancy to the industry and agencies in these sectors
EDUCATION amp RESEARCH INSTITUTES
EEPC India is the premier trade and investment promotion organization in India It is sponsored by the Ministry of Commerce amp Industry It is an advisory body that actively contributes to the policies of Government of India and acts as an interface between the engineering industry and the Government
ENGINEERING EXPORT PROMOTION COUNCIL
(EEPC)
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
5
7
3
4
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of specific categories of goods bull Import of samples bull (a) No Authorisation shall be required for Import of bonafide technical and trade samples of items restricted in ITC (HS)
except vegetable seeds bees and new drugs Samples of tea not exceeding INR 2000 (CIF) in one consignment shall be allowed without an Authorisation by any person connected with Tea industry
bull (b) Duty free import of samples upto INR 300000 for all exporters shall be allowed as per terms and conditions of Customs Notification
bull Re ndash import of goods repaired abroad ndash Capital goods equipment components parts and accessories whether imported or indigenous except those 42
restricted under ITC (HS) may be sent abroad for repairs testing quality improvement or upgradation or standardization of technology and re-imported without an Authorisation
bull Import of goods used in projects abroad ndash Project contractors after completion of projects abroad may import without an Authorisation goods including capital
goods used in the project provided they have been used for at least one year bull Import Policy for Second Hand Goods
Category Conditions
i Personal computers laptops including refurbished re-conditioned spares
ii Photocopier machines Digital multifunction Print amp Copying Machines
iii Air conditioners
iv Diesel generating sets
Restricted ( Importable against authorization)
Refurbished re-conditioned spares of Capital Goods Free (Subject to production of Chartered Engineer
certificate to the effect that such spares have at
least 80 residual life of original spare)
All other second hand capital goods other than (a) amp (b) above Free
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of restricted goods An application for grant of an Authorisation for import or export of items mentioned as lsquoRestrictedrsquo in ITC (HS) may be made to RA with a copy to DGFT Hqrs in ANF 2M along with documents prescribed therein Original application along with Treasury Receipt (TR) Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA
Restricted item Authorisation may be granted by DGFT or any other RA authorised by him in this behalf
Import of Restricted Items Required by Hotels Restaurants Travel Agents Tour Operators and other Specified Categories bull Hotels including tourist hotels recognised by Director General of Tourism Government of India or a State Government shall
be entitled to import Authorisation upto a value of 25 of foreign exchange earned by them from foreign tourists during preceding licensing year for import of essential goods related to hotel and tourism industry
bull Travel agents tour operators restaurants and tourist transport operators and other units for tourism like adventure wildlife and convention units recognized by Director General of Tourism Government of India shall be entitled to import authorisation up to a value of 10 of foreign exchange earned by them during preceding licensing year for import of essential goods which are restricted for imports related to travel and tourism industry including office and other equipmentrequired for their own professional use
bull Such imported goods may be transferred after 2 years with permission of DGFT No permission for transfer will be required in case the imported goods are re-exported However re-export shall be subject to all conditionality or requirement of licence or permission as may be required under Schedule II of ITC (HS)
bull An application for grant of an Authorisation to be made in ANF 2 M to DGFT through Director of Tourism Government of India who will forward application to RA concerned along with their recommendations
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of Restricted items for RampD by units of Government
All restricted items and items permitted to be imported by STEs except live animals required for RampD purpose may be imported without an Authorisation by Government recognized Research and Development units
Import for export a) Goods imported in accordance with FTP may be exported in same or substantially the same form without an
Authorisation provided that item to be imported or exported is not restricted for import or export in ITC (HS)
bull (b) Goods including capital goods (both new and second hand) may be imported for export provided
ndash Importer clears goods under Customs Bond
ndash Goods are freely exportable ie are not ldquorestrictedrdquo ldquoprohibitedrdquo subject to ldquoexclusive trading through State
Trading Enterprisesrdquo or any conditionality requirement as may be required under Schedule 2 ndash Export Policy of the
ITC (HS)
ndash Export is against freely convertible currency
bull (c) Goods in (b) above will include lsquorestrictedrsquo goods for import (except lsquoprohibitedrsquo items)
bull Export of repaired goods ldquoGoods or parts thereof except restricted under ITC (HS) on being exported and found defective
damaged or otherwise unfit for use may be imported for repair and subsequent re-export Such goods shall be allowed
clearance without an Authorisation and in accordance with customs notification unless imported exclusively for undertaking
root cause analysis testing and evaluation purpose
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Duties and GST- Applicability to International Trade
GST- Imports Import of goods into India is treated as interstate supply Therefore IGST is levied on import of goodsAfter introduction of GST CVD and SAD have been replaced with Integrated Goods and Service Tax IGSTIGST and Basic Customs Duty are the main components in determining the total import duty payable to customs at the time of Import of Goods into IndiaIn imports IGST is computed on transaction value of imported goods plus duties and taxes etc charged under any statute other than the GST Law
GST- ExportsExports are treated as zero rated supplies No tax will be payable on exports of goods or services however credit of input taxcredit will be available and same will be available as refund to the exporters
Duties Applicable to ImportsBasic Customs DutyAdditional Duty of customsAntidumping DutyTariff DutySafeguard DutyIGST Levy
These duties are not applicable to all imports
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Legislative amp governance framework Schemes MEIS amp SEIS
a) MEISb) SEIS
Duty exemption Schemesa) Advance Authorization Annual Advance Authorizationb) Duty Free Import Authorization
Raw materials amp inputs
Allows duty free import of raw materials for export production
Export Promotion Capital Goods Scheme (EPCG Scheme)Capital Goods amp
Machinery
Allows duty free import of machinery amp equipment for export production amp services
Finished GoodsDuty Credit scrips are provided against exports that can be used to pay duties taxes
SEZs EOUs FTWZsInternational
Markets
TED exemptions refund for DTAs
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Abbreviations
AA Advance Authorization
ANF Aayat Niryat Form
ASEAN Association of South- East Asian Nations and
other Allied Activities
ACD Additional Custom Duty
ASIDE Assistance to States for Developing Export Infrastructure
BCD Basic Customs Duty
BOA Board of Approval
BTP Bio-Technology Park
CAPEXIL Chemical and Allied Export Promotion Council of India
CBEC Central Board of Excise and Customs
CCI Chamber of Commerce and Industry
CDDO Cheque Drawing and Disbursing Officer
CEPA Comprehensive Economic Partnership Agreement
CIN Corporate Identification Number
CITD Capacity Building Initiative for Trade Development
CVD Countervailing Duty
DBK Drawback schedule
DEPB Duty Entitlement Passbook Scheme
DFRC Duty Free Replenishment Certificate
DGAD Directorate General Of Anti- Dumping and Allied Duties
DGCIampS Directorate General CommerceIntelligence and Statistics
DGFT Directorate General of Foreign Trade
DGSampD Director General of Supply and Disposal
DIN Director Identification Number
DIPP Department of Industrial Policy ampPromotion
DOC Department of Commerce
DPIN Designated Partnership IdentificationNumber
DTA Domestic Tariff Area
ECB External Commercial Borrowing
EHTP Electronic Hardware Technology Park
EOU Export Oriented Unit
EPCG Export Promotion of Capital Goods
EPZ Export Processing Zone
EXIM Export Import
Abbreviations
FIEO Federation of Import Export Organisation
FOB Free on Board
FTWZ Free Trade and Warehousing Zones
GATS General Agreement on Trade in Services
GOI Government of India
IEC Import Export Code
IPCS Institute Peace and Conflict Studies
ITC (HS) Indian Trade Classification based on Harmonised System
Of Coding
LAC Latin American and Caribbean
LCS Land Customs Station
LLPIN Limited Liability Partnership Identification Number
LOC Letter of Credit
MERCOSUR South American Trade Bloc
MEIS Merchandise Export from India Scheme
NAFTA North American Free Trade Agreement
PAN Permanent Account Number
PSU Public Sector Undertaking
PTA Preferential Trade Agreement
RCMC Registration cum Membership Certificate
ROO Rules of Origin
SAD Special Additional Duty
SAFTA South Asian Free Trade Area
SEIS Services Exports from India Scheme
SEZ Special Economic Zone
SPS Sanitary and Phytosanitary measures
STA Special Trade Agreement
STC State Trading Corporation of India (Ltd)
STEs State Trading Enterprises
TBT Technical Barriers to Trade
TRIPS Trade Related Aspects of Intellectual
Property Rights
VAT Valued Added Tax
WTO World Trade Organisation
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Ecosystem MappingGovernment bodies and agencies involved
Dissects and analyses information on Indiarsquos trade performance with focus on improvement of exports
Deals with international trade in tea coffee rubber and notifiedspices Also implements statutory and policy framework forproduction development and marketing of related commodities
Is responsible for matters related to agriculture NAMA disputes andrules SPS TBT TRIPS environment labour amp services tradefacilitation wrt functions of WTO amp international bodies
Deals with trade promotion policy negotiation amp other relatedactivities with regions amp countries (Africa NAFTA Latin AmericaEurope ASEAN etc)
Facilitates amp promotes exports in agriculture marine leather amp sportsgoods gems amp jewellery engineering goods etc
Deals with appointments for various positions maintenance of service records fixation of pay and grantof leave gratuity etc for Gazetted and Non-gazetted Officers
Preparation amp monitoring of budget of the Department of Commerce advice and review of financialexpenditure monitoring of schemes release of grants etc
Cadre management administration vigilance policies amp procedures relating to purchase inspections amppayments etc
Responsible for export and market development assistance tradefinance implementation amp monitoring of lsquoAssistance to States forDeveloping Export Infrastructure and other Allied Activities (ASIDE)rsquomatters related to EPZs EOUs etc
Ministry of Commerce and Industry
International Trade Policy Division
Foreign Trade Territorial Division
Export Products Division
Export Industries Division
Export Services Division
Economic Division
Administration amp General Service Division
Finance Division
Supply Division
Ecosystem MappingGovernment bodies and agencies involved
Responsible for implementing FTP with the aim of promoting exports DGFT also issues licenses to exporters and monitors their obligations All ROs provide facilitation to exporters wrt International Trade ie WTO agreements Rules of Origin and anti-dumping issues etc Website httpdgftgovin
DIRECTORATE GENERAL OF FOREIGN TRADE (DGFT)
Functions as the executive arm of the Supply Division of the Department of Commerce for conclusion of Rate Contracts for common user items procurement of stores etc
DIRECTORATE GENERAL OF SUPPLIES AND DISPOSALS
(DGSD)
Responsible for carrying out investigations and recommending where required under the Customs Tariff Act the amount of anti-dumping duty countervailing duty on the identified articles as would be adequate to remove injury to the domestic industry
DIRECTORATE GENERAL OF ANTI-DUMPING AND
ALLIED DUTIES (DGAD)
Entrusted with the work of collecting compiling and publishing disseminating trade statistics and various types of commercial information required by the policy makers researchers importers exporters traders and overseas buyers
DIRECTORATE GENERAL OF COMMERCIAL
INTELLIGENCE amp STATISTICS(DGCIampS)
The payment amp accounting of Supply Division including those of DGSampD are performed by the Office of Chief Controller of Accounts (Supply Division) under the Departmentalized Accounting System Payment to suppliers are made through this organization at New Delhi Kolkata Mumbai and Chennai
PAY AND ACCOUNT OFFICE (SUPPLY COMMERCE AND
TEXTILES)
The main objectives of the SEZ is generation of additional economic activity promotion of exports of goods and services promotion of investment from domestic and foreign sources creation of employment opportunities along with the development of infrastructure facilities
SPECIAL ECONOMIC ZONES
Ecosystem MappingSupporting Agencies PSUs handling EXIM
Undertakes exports imports of a diverse range of items tofrom countries all over the world Also monitors counter trade commitments against Government purchases and import of technical and scientific equipment on behalf of Forensic Science Laboratories Paramilitary Organisations etc
STATE TRADING CORPORATION (STC)
Created in 1963 as an independent entity on separation from State Trading Corporation of India Ltd primarily to deal in exports of minerals and ores and imports of non-ferrous metals MMTC also imports and export various other items like steel diamonds bullion agro hydrocarbon etc
An export promotion organization seeking to improve the competitiveness of the Indian exports by providing them with credit insurance covers It manages credit risks through insurance covers for exporters as well as banks worthiness analysis of buyers bankers countries etc
EXPORT CREDIT GUARANTEE
CORPORATION OF INDIA LIMITED
A premier trade promotion agency of India and acts as a catalyst for growth of Indiarsquos trade through participation in Indian and international trade fairs supporting in access to market for SMEs dissemination of trade information for e-commerce etc
INDIA TRADE PROMOTION
ORGANISATION
METALS amp MINERALS TRADING CORPORATION
OF INDIA(MMTC)
Deals with export of projects engineering equipment amp manufactured goods defence equipment amp stores import of industrial raw materials bullion and agro commodities diversification in export of non-engineering items edible oils steel scraps etc and structuring counter trade special trading
PEC LIMITED
Ecosystem MappingSupporting Agencies Autonomous bodies
Responsible for development of the marine products industry with special reference to exports Its focus area includes facilitating enhanced export of marine products from the country
MARINE PRODUCTS EXPORT DEVELOPMENT
AUTHORITY
Actively engaged in development of markets and up gradation of infrastructure to promote export of agro products Provides financial assistance to the registered exporters It supervises export promotion of 14 agricultural and processed food product groups listed in the Schedule to the APEDA Act
5 statutory Commodity Boards under the Department of Commerce are responsible for production development and export of tea coffee rubber spices and tobaccoCOMMODITY BOARDS
Role of EIC is to ensure that products notified under the Export (Quality Control and Inspection) Act 1963 are meeting the requirements of the importing countries in respect of their quality and safetyEXPORT INSPECTION
COUNCIL(EIC)
AGRICULTURAL amp PROCESSED FOOD
PRODUCTS EXPORT DEVELOPMENT AUTHORITY
Indian Institute of Plantations Management Indian Institute of Packaging amp Indian Institute of Foreign Trade are set up as autonomous institutions by the Ministry of Commerce Rstablished for education research training development and consultancy to the industry and agencies in these sectors
EDUCATION amp RESEARCH INSTITUTES
EEPC India is the premier trade and investment promotion organization in India It is sponsored by the Ministry of Commerce amp Industry It is an advisory body that actively contributes to the policies of Government of India and acts as an interface between the engineering industry and the Government
ENGINEERING EXPORT PROMOTION COUNCIL
(EEPC)
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
5
7
3
4
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of specific categories of goods bull Import of samples bull (a) No Authorisation shall be required for Import of bonafide technical and trade samples of items restricted in ITC (HS)
except vegetable seeds bees and new drugs Samples of tea not exceeding INR 2000 (CIF) in one consignment shall be allowed without an Authorisation by any person connected with Tea industry
bull (b) Duty free import of samples upto INR 300000 for all exporters shall be allowed as per terms and conditions of Customs Notification
bull Re ndash import of goods repaired abroad ndash Capital goods equipment components parts and accessories whether imported or indigenous except those 42
restricted under ITC (HS) may be sent abroad for repairs testing quality improvement or upgradation or standardization of technology and re-imported without an Authorisation
bull Import of goods used in projects abroad ndash Project contractors after completion of projects abroad may import without an Authorisation goods including capital
goods used in the project provided they have been used for at least one year bull Import Policy for Second Hand Goods
Category Conditions
i Personal computers laptops including refurbished re-conditioned spares
ii Photocopier machines Digital multifunction Print amp Copying Machines
iii Air conditioners
iv Diesel generating sets
Restricted ( Importable against authorization)
Refurbished re-conditioned spares of Capital Goods Free (Subject to production of Chartered Engineer
certificate to the effect that such spares have at
least 80 residual life of original spare)
All other second hand capital goods other than (a) amp (b) above Free
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of restricted goods An application for grant of an Authorisation for import or export of items mentioned as lsquoRestrictedrsquo in ITC (HS) may be made to RA with a copy to DGFT Hqrs in ANF 2M along with documents prescribed therein Original application along with Treasury Receipt (TR) Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA
Restricted item Authorisation may be granted by DGFT or any other RA authorised by him in this behalf
Import of Restricted Items Required by Hotels Restaurants Travel Agents Tour Operators and other Specified Categories bull Hotels including tourist hotels recognised by Director General of Tourism Government of India or a State Government shall
be entitled to import Authorisation upto a value of 25 of foreign exchange earned by them from foreign tourists during preceding licensing year for import of essential goods related to hotel and tourism industry
bull Travel agents tour operators restaurants and tourist transport operators and other units for tourism like adventure wildlife and convention units recognized by Director General of Tourism Government of India shall be entitled to import authorisation up to a value of 10 of foreign exchange earned by them during preceding licensing year for import of essential goods which are restricted for imports related to travel and tourism industry including office and other equipmentrequired for their own professional use
bull Such imported goods may be transferred after 2 years with permission of DGFT No permission for transfer will be required in case the imported goods are re-exported However re-export shall be subject to all conditionality or requirement of licence or permission as may be required under Schedule II of ITC (HS)
bull An application for grant of an Authorisation to be made in ANF 2 M to DGFT through Director of Tourism Government of India who will forward application to RA concerned along with their recommendations
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of Restricted items for RampD by units of Government
All restricted items and items permitted to be imported by STEs except live animals required for RampD purpose may be imported without an Authorisation by Government recognized Research and Development units
Import for export a) Goods imported in accordance with FTP may be exported in same or substantially the same form without an
Authorisation provided that item to be imported or exported is not restricted for import or export in ITC (HS)
bull (b) Goods including capital goods (both new and second hand) may be imported for export provided
ndash Importer clears goods under Customs Bond
ndash Goods are freely exportable ie are not ldquorestrictedrdquo ldquoprohibitedrdquo subject to ldquoexclusive trading through State
Trading Enterprisesrdquo or any conditionality requirement as may be required under Schedule 2 ndash Export Policy of the
ITC (HS)
ndash Export is against freely convertible currency
bull (c) Goods in (b) above will include lsquorestrictedrsquo goods for import (except lsquoprohibitedrsquo items)
bull Export of repaired goods ldquoGoods or parts thereof except restricted under ITC (HS) on being exported and found defective
damaged or otherwise unfit for use may be imported for repair and subsequent re-export Such goods shall be allowed
clearance without an Authorisation and in accordance with customs notification unless imported exclusively for undertaking
root cause analysis testing and evaluation purpose
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Duties and GST- Applicability to International Trade
GST- Imports Import of goods into India is treated as interstate supply Therefore IGST is levied on import of goodsAfter introduction of GST CVD and SAD have been replaced with Integrated Goods and Service Tax IGSTIGST and Basic Customs Duty are the main components in determining the total import duty payable to customs at the time of Import of Goods into IndiaIn imports IGST is computed on transaction value of imported goods plus duties and taxes etc charged under any statute other than the GST Law
GST- ExportsExports are treated as zero rated supplies No tax will be payable on exports of goods or services however credit of input taxcredit will be available and same will be available as refund to the exporters
Duties Applicable to ImportsBasic Customs DutyAdditional Duty of customsAntidumping DutyTariff DutySafeguard DutyIGST Levy
These duties are not applicable to all imports
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Legislative amp governance framework Schemes MEIS amp SEIS
a) MEISb) SEIS
Duty exemption Schemesa) Advance Authorization Annual Advance Authorizationb) Duty Free Import Authorization
Raw materials amp inputs
Allows duty free import of raw materials for export production
Export Promotion Capital Goods Scheme (EPCG Scheme)Capital Goods amp
Machinery
Allows duty free import of machinery amp equipment for export production amp services
Finished GoodsDuty Credit scrips are provided against exports that can be used to pay duties taxes
SEZs EOUs FTWZsInternational
Markets
TED exemptions refund for DTAs
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Abbreviations
FIEO Federation of Import Export Organisation
FOB Free on Board
FTWZ Free Trade and Warehousing Zones
GATS General Agreement on Trade in Services
GOI Government of India
IEC Import Export Code
IPCS Institute Peace and Conflict Studies
ITC (HS) Indian Trade Classification based on Harmonised System
Of Coding
LAC Latin American and Caribbean
LCS Land Customs Station
LLPIN Limited Liability Partnership Identification Number
LOC Letter of Credit
MERCOSUR South American Trade Bloc
MEIS Merchandise Export from India Scheme
NAFTA North American Free Trade Agreement
PAN Permanent Account Number
PSU Public Sector Undertaking
PTA Preferential Trade Agreement
RCMC Registration cum Membership Certificate
ROO Rules of Origin
SAD Special Additional Duty
SAFTA South Asian Free Trade Area
SEIS Services Exports from India Scheme
SEZ Special Economic Zone
SPS Sanitary and Phytosanitary measures
STA Special Trade Agreement
STC State Trading Corporation of India (Ltd)
STEs State Trading Enterprises
TBT Technical Barriers to Trade
TRIPS Trade Related Aspects of Intellectual
Property Rights
VAT Valued Added Tax
WTO World Trade Organisation
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Ecosystem MappingGovernment bodies and agencies involved
Dissects and analyses information on Indiarsquos trade performance with focus on improvement of exports
Deals with international trade in tea coffee rubber and notifiedspices Also implements statutory and policy framework forproduction development and marketing of related commodities
Is responsible for matters related to agriculture NAMA disputes andrules SPS TBT TRIPS environment labour amp services tradefacilitation wrt functions of WTO amp international bodies
Deals with trade promotion policy negotiation amp other relatedactivities with regions amp countries (Africa NAFTA Latin AmericaEurope ASEAN etc)
Facilitates amp promotes exports in agriculture marine leather amp sportsgoods gems amp jewellery engineering goods etc
Deals with appointments for various positions maintenance of service records fixation of pay and grantof leave gratuity etc for Gazetted and Non-gazetted Officers
Preparation amp monitoring of budget of the Department of Commerce advice and review of financialexpenditure monitoring of schemes release of grants etc
Cadre management administration vigilance policies amp procedures relating to purchase inspections amppayments etc
Responsible for export and market development assistance tradefinance implementation amp monitoring of lsquoAssistance to States forDeveloping Export Infrastructure and other Allied Activities (ASIDE)rsquomatters related to EPZs EOUs etc
Ministry of Commerce and Industry
International Trade Policy Division
Foreign Trade Territorial Division
Export Products Division
Export Industries Division
Export Services Division
Economic Division
Administration amp General Service Division
Finance Division
Supply Division
Ecosystem MappingGovernment bodies and agencies involved
Responsible for implementing FTP with the aim of promoting exports DGFT also issues licenses to exporters and monitors their obligations All ROs provide facilitation to exporters wrt International Trade ie WTO agreements Rules of Origin and anti-dumping issues etc Website httpdgftgovin
DIRECTORATE GENERAL OF FOREIGN TRADE (DGFT)
Functions as the executive arm of the Supply Division of the Department of Commerce for conclusion of Rate Contracts for common user items procurement of stores etc
DIRECTORATE GENERAL OF SUPPLIES AND DISPOSALS
(DGSD)
Responsible for carrying out investigations and recommending where required under the Customs Tariff Act the amount of anti-dumping duty countervailing duty on the identified articles as would be adequate to remove injury to the domestic industry
DIRECTORATE GENERAL OF ANTI-DUMPING AND
ALLIED DUTIES (DGAD)
Entrusted with the work of collecting compiling and publishing disseminating trade statistics and various types of commercial information required by the policy makers researchers importers exporters traders and overseas buyers
DIRECTORATE GENERAL OF COMMERCIAL
INTELLIGENCE amp STATISTICS(DGCIampS)
The payment amp accounting of Supply Division including those of DGSampD are performed by the Office of Chief Controller of Accounts (Supply Division) under the Departmentalized Accounting System Payment to suppliers are made through this organization at New Delhi Kolkata Mumbai and Chennai
PAY AND ACCOUNT OFFICE (SUPPLY COMMERCE AND
TEXTILES)
The main objectives of the SEZ is generation of additional economic activity promotion of exports of goods and services promotion of investment from domestic and foreign sources creation of employment opportunities along with the development of infrastructure facilities
SPECIAL ECONOMIC ZONES
Ecosystem MappingSupporting Agencies PSUs handling EXIM
Undertakes exports imports of a diverse range of items tofrom countries all over the world Also monitors counter trade commitments against Government purchases and import of technical and scientific equipment on behalf of Forensic Science Laboratories Paramilitary Organisations etc
STATE TRADING CORPORATION (STC)
Created in 1963 as an independent entity on separation from State Trading Corporation of India Ltd primarily to deal in exports of minerals and ores and imports of non-ferrous metals MMTC also imports and export various other items like steel diamonds bullion agro hydrocarbon etc
An export promotion organization seeking to improve the competitiveness of the Indian exports by providing them with credit insurance covers It manages credit risks through insurance covers for exporters as well as banks worthiness analysis of buyers bankers countries etc
EXPORT CREDIT GUARANTEE
CORPORATION OF INDIA LIMITED
A premier trade promotion agency of India and acts as a catalyst for growth of Indiarsquos trade through participation in Indian and international trade fairs supporting in access to market for SMEs dissemination of trade information for e-commerce etc
INDIA TRADE PROMOTION
ORGANISATION
METALS amp MINERALS TRADING CORPORATION
OF INDIA(MMTC)
Deals with export of projects engineering equipment amp manufactured goods defence equipment amp stores import of industrial raw materials bullion and agro commodities diversification in export of non-engineering items edible oils steel scraps etc and structuring counter trade special trading
PEC LIMITED
Ecosystem MappingSupporting Agencies Autonomous bodies
Responsible for development of the marine products industry with special reference to exports Its focus area includes facilitating enhanced export of marine products from the country
MARINE PRODUCTS EXPORT DEVELOPMENT
AUTHORITY
Actively engaged in development of markets and up gradation of infrastructure to promote export of agro products Provides financial assistance to the registered exporters It supervises export promotion of 14 agricultural and processed food product groups listed in the Schedule to the APEDA Act
5 statutory Commodity Boards under the Department of Commerce are responsible for production development and export of tea coffee rubber spices and tobaccoCOMMODITY BOARDS
Role of EIC is to ensure that products notified under the Export (Quality Control and Inspection) Act 1963 are meeting the requirements of the importing countries in respect of their quality and safetyEXPORT INSPECTION
COUNCIL(EIC)
AGRICULTURAL amp PROCESSED FOOD
PRODUCTS EXPORT DEVELOPMENT AUTHORITY
Indian Institute of Plantations Management Indian Institute of Packaging amp Indian Institute of Foreign Trade are set up as autonomous institutions by the Ministry of Commerce Rstablished for education research training development and consultancy to the industry and agencies in these sectors
EDUCATION amp RESEARCH INSTITUTES
EEPC India is the premier trade and investment promotion organization in India It is sponsored by the Ministry of Commerce amp Industry It is an advisory body that actively contributes to the policies of Government of India and acts as an interface between the engineering industry and the Government
ENGINEERING EXPORT PROMOTION COUNCIL
(EEPC)
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
5
7
3
4
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of specific categories of goods bull Import of samples bull (a) No Authorisation shall be required for Import of bonafide technical and trade samples of items restricted in ITC (HS)
except vegetable seeds bees and new drugs Samples of tea not exceeding INR 2000 (CIF) in one consignment shall be allowed without an Authorisation by any person connected with Tea industry
bull (b) Duty free import of samples upto INR 300000 for all exporters shall be allowed as per terms and conditions of Customs Notification
bull Re ndash import of goods repaired abroad ndash Capital goods equipment components parts and accessories whether imported or indigenous except those 42
restricted under ITC (HS) may be sent abroad for repairs testing quality improvement or upgradation or standardization of technology and re-imported without an Authorisation
bull Import of goods used in projects abroad ndash Project contractors after completion of projects abroad may import without an Authorisation goods including capital
goods used in the project provided they have been used for at least one year bull Import Policy for Second Hand Goods
Category Conditions
i Personal computers laptops including refurbished re-conditioned spares
ii Photocopier machines Digital multifunction Print amp Copying Machines
iii Air conditioners
iv Diesel generating sets
Restricted ( Importable against authorization)
Refurbished re-conditioned spares of Capital Goods Free (Subject to production of Chartered Engineer
certificate to the effect that such spares have at
least 80 residual life of original spare)
All other second hand capital goods other than (a) amp (b) above Free
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of restricted goods An application for grant of an Authorisation for import or export of items mentioned as lsquoRestrictedrsquo in ITC (HS) may be made to RA with a copy to DGFT Hqrs in ANF 2M along with documents prescribed therein Original application along with Treasury Receipt (TR) Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA
Restricted item Authorisation may be granted by DGFT or any other RA authorised by him in this behalf
Import of Restricted Items Required by Hotels Restaurants Travel Agents Tour Operators and other Specified Categories bull Hotels including tourist hotels recognised by Director General of Tourism Government of India or a State Government shall
be entitled to import Authorisation upto a value of 25 of foreign exchange earned by them from foreign tourists during preceding licensing year for import of essential goods related to hotel and tourism industry
bull Travel agents tour operators restaurants and tourist transport operators and other units for tourism like adventure wildlife and convention units recognized by Director General of Tourism Government of India shall be entitled to import authorisation up to a value of 10 of foreign exchange earned by them during preceding licensing year for import of essential goods which are restricted for imports related to travel and tourism industry including office and other equipmentrequired for their own professional use
bull Such imported goods may be transferred after 2 years with permission of DGFT No permission for transfer will be required in case the imported goods are re-exported However re-export shall be subject to all conditionality or requirement of licence or permission as may be required under Schedule II of ITC (HS)
bull An application for grant of an Authorisation to be made in ANF 2 M to DGFT through Director of Tourism Government of India who will forward application to RA concerned along with their recommendations
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of Restricted items for RampD by units of Government
All restricted items and items permitted to be imported by STEs except live animals required for RampD purpose may be imported without an Authorisation by Government recognized Research and Development units
Import for export a) Goods imported in accordance with FTP may be exported in same or substantially the same form without an
Authorisation provided that item to be imported or exported is not restricted for import or export in ITC (HS)
bull (b) Goods including capital goods (both new and second hand) may be imported for export provided
ndash Importer clears goods under Customs Bond
ndash Goods are freely exportable ie are not ldquorestrictedrdquo ldquoprohibitedrdquo subject to ldquoexclusive trading through State
Trading Enterprisesrdquo or any conditionality requirement as may be required under Schedule 2 ndash Export Policy of the
ITC (HS)
ndash Export is against freely convertible currency
bull (c) Goods in (b) above will include lsquorestrictedrsquo goods for import (except lsquoprohibitedrsquo items)
bull Export of repaired goods ldquoGoods or parts thereof except restricted under ITC (HS) on being exported and found defective
damaged or otherwise unfit for use may be imported for repair and subsequent re-export Such goods shall be allowed
clearance without an Authorisation and in accordance with customs notification unless imported exclusively for undertaking
root cause analysis testing and evaluation purpose
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Duties and GST- Applicability to International Trade
GST- Imports Import of goods into India is treated as interstate supply Therefore IGST is levied on import of goodsAfter introduction of GST CVD and SAD have been replaced with Integrated Goods and Service Tax IGSTIGST and Basic Customs Duty are the main components in determining the total import duty payable to customs at the time of Import of Goods into IndiaIn imports IGST is computed on transaction value of imported goods plus duties and taxes etc charged under any statute other than the GST Law
GST- ExportsExports are treated as zero rated supplies No tax will be payable on exports of goods or services however credit of input taxcredit will be available and same will be available as refund to the exporters
Duties Applicable to ImportsBasic Customs DutyAdditional Duty of customsAntidumping DutyTariff DutySafeguard DutyIGST Levy
These duties are not applicable to all imports
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Legislative amp governance framework Schemes MEIS amp SEIS
a) MEISb) SEIS
Duty exemption Schemesa) Advance Authorization Annual Advance Authorizationb) Duty Free Import Authorization
Raw materials amp inputs
Allows duty free import of raw materials for export production
Export Promotion Capital Goods Scheme (EPCG Scheme)Capital Goods amp
Machinery
Allows duty free import of machinery amp equipment for export production amp services
Finished GoodsDuty Credit scrips are provided against exports that can be used to pay duties taxes
SEZs EOUs FTWZsInternational
Markets
TED exemptions refund for DTAs
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Ecosystem MappingGovernment bodies and agencies involved
Dissects and analyses information on Indiarsquos trade performance with focus on improvement of exports
Deals with international trade in tea coffee rubber and notifiedspices Also implements statutory and policy framework forproduction development and marketing of related commodities
Is responsible for matters related to agriculture NAMA disputes andrules SPS TBT TRIPS environment labour amp services tradefacilitation wrt functions of WTO amp international bodies
Deals with trade promotion policy negotiation amp other relatedactivities with regions amp countries (Africa NAFTA Latin AmericaEurope ASEAN etc)
Facilitates amp promotes exports in agriculture marine leather amp sportsgoods gems amp jewellery engineering goods etc
Deals with appointments for various positions maintenance of service records fixation of pay and grantof leave gratuity etc for Gazetted and Non-gazetted Officers
Preparation amp monitoring of budget of the Department of Commerce advice and review of financialexpenditure monitoring of schemes release of grants etc
Cadre management administration vigilance policies amp procedures relating to purchase inspections amppayments etc
Responsible for export and market development assistance tradefinance implementation amp monitoring of lsquoAssistance to States forDeveloping Export Infrastructure and other Allied Activities (ASIDE)rsquomatters related to EPZs EOUs etc
Ministry of Commerce and Industry
International Trade Policy Division
Foreign Trade Territorial Division
Export Products Division
Export Industries Division
Export Services Division
Economic Division
Administration amp General Service Division
Finance Division
Supply Division
Ecosystem MappingGovernment bodies and agencies involved
Responsible for implementing FTP with the aim of promoting exports DGFT also issues licenses to exporters and monitors their obligations All ROs provide facilitation to exporters wrt International Trade ie WTO agreements Rules of Origin and anti-dumping issues etc Website httpdgftgovin
DIRECTORATE GENERAL OF FOREIGN TRADE (DGFT)
Functions as the executive arm of the Supply Division of the Department of Commerce for conclusion of Rate Contracts for common user items procurement of stores etc
DIRECTORATE GENERAL OF SUPPLIES AND DISPOSALS
(DGSD)
Responsible for carrying out investigations and recommending where required under the Customs Tariff Act the amount of anti-dumping duty countervailing duty on the identified articles as would be adequate to remove injury to the domestic industry
DIRECTORATE GENERAL OF ANTI-DUMPING AND
ALLIED DUTIES (DGAD)
Entrusted with the work of collecting compiling and publishing disseminating trade statistics and various types of commercial information required by the policy makers researchers importers exporters traders and overseas buyers
DIRECTORATE GENERAL OF COMMERCIAL
INTELLIGENCE amp STATISTICS(DGCIampS)
The payment amp accounting of Supply Division including those of DGSampD are performed by the Office of Chief Controller of Accounts (Supply Division) under the Departmentalized Accounting System Payment to suppliers are made through this organization at New Delhi Kolkata Mumbai and Chennai
PAY AND ACCOUNT OFFICE (SUPPLY COMMERCE AND
TEXTILES)
The main objectives of the SEZ is generation of additional economic activity promotion of exports of goods and services promotion of investment from domestic and foreign sources creation of employment opportunities along with the development of infrastructure facilities
SPECIAL ECONOMIC ZONES
Ecosystem MappingSupporting Agencies PSUs handling EXIM
Undertakes exports imports of a diverse range of items tofrom countries all over the world Also monitors counter trade commitments against Government purchases and import of technical and scientific equipment on behalf of Forensic Science Laboratories Paramilitary Organisations etc
STATE TRADING CORPORATION (STC)
Created in 1963 as an independent entity on separation from State Trading Corporation of India Ltd primarily to deal in exports of minerals and ores and imports of non-ferrous metals MMTC also imports and export various other items like steel diamonds bullion agro hydrocarbon etc
An export promotion organization seeking to improve the competitiveness of the Indian exports by providing them with credit insurance covers It manages credit risks through insurance covers for exporters as well as banks worthiness analysis of buyers bankers countries etc
EXPORT CREDIT GUARANTEE
CORPORATION OF INDIA LIMITED
A premier trade promotion agency of India and acts as a catalyst for growth of Indiarsquos trade through participation in Indian and international trade fairs supporting in access to market for SMEs dissemination of trade information for e-commerce etc
INDIA TRADE PROMOTION
ORGANISATION
METALS amp MINERALS TRADING CORPORATION
OF INDIA(MMTC)
Deals with export of projects engineering equipment amp manufactured goods defence equipment amp stores import of industrial raw materials bullion and agro commodities diversification in export of non-engineering items edible oils steel scraps etc and structuring counter trade special trading
PEC LIMITED
Ecosystem MappingSupporting Agencies Autonomous bodies
Responsible for development of the marine products industry with special reference to exports Its focus area includes facilitating enhanced export of marine products from the country
MARINE PRODUCTS EXPORT DEVELOPMENT
AUTHORITY
Actively engaged in development of markets and up gradation of infrastructure to promote export of agro products Provides financial assistance to the registered exporters It supervises export promotion of 14 agricultural and processed food product groups listed in the Schedule to the APEDA Act
5 statutory Commodity Boards under the Department of Commerce are responsible for production development and export of tea coffee rubber spices and tobaccoCOMMODITY BOARDS
Role of EIC is to ensure that products notified under the Export (Quality Control and Inspection) Act 1963 are meeting the requirements of the importing countries in respect of their quality and safetyEXPORT INSPECTION
COUNCIL(EIC)
AGRICULTURAL amp PROCESSED FOOD
PRODUCTS EXPORT DEVELOPMENT AUTHORITY
Indian Institute of Plantations Management Indian Institute of Packaging amp Indian Institute of Foreign Trade are set up as autonomous institutions by the Ministry of Commerce Rstablished for education research training development and consultancy to the industry and agencies in these sectors
EDUCATION amp RESEARCH INSTITUTES
EEPC India is the premier trade and investment promotion organization in India It is sponsored by the Ministry of Commerce amp Industry It is an advisory body that actively contributes to the policies of Government of India and acts as an interface between the engineering industry and the Government
ENGINEERING EXPORT PROMOTION COUNCIL
(EEPC)
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
5
7
3
4
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of specific categories of goods bull Import of samples bull (a) No Authorisation shall be required for Import of bonafide technical and trade samples of items restricted in ITC (HS)
except vegetable seeds bees and new drugs Samples of tea not exceeding INR 2000 (CIF) in one consignment shall be allowed without an Authorisation by any person connected with Tea industry
bull (b) Duty free import of samples upto INR 300000 for all exporters shall be allowed as per terms and conditions of Customs Notification
bull Re ndash import of goods repaired abroad ndash Capital goods equipment components parts and accessories whether imported or indigenous except those 42
restricted under ITC (HS) may be sent abroad for repairs testing quality improvement or upgradation or standardization of technology and re-imported without an Authorisation
bull Import of goods used in projects abroad ndash Project contractors after completion of projects abroad may import without an Authorisation goods including capital
goods used in the project provided they have been used for at least one year bull Import Policy for Second Hand Goods
Category Conditions
i Personal computers laptops including refurbished re-conditioned spares
ii Photocopier machines Digital multifunction Print amp Copying Machines
iii Air conditioners
iv Diesel generating sets
Restricted ( Importable against authorization)
Refurbished re-conditioned spares of Capital Goods Free (Subject to production of Chartered Engineer
certificate to the effect that such spares have at
least 80 residual life of original spare)
All other second hand capital goods other than (a) amp (b) above Free
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of restricted goods An application for grant of an Authorisation for import or export of items mentioned as lsquoRestrictedrsquo in ITC (HS) may be made to RA with a copy to DGFT Hqrs in ANF 2M along with documents prescribed therein Original application along with Treasury Receipt (TR) Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA
Restricted item Authorisation may be granted by DGFT or any other RA authorised by him in this behalf
Import of Restricted Items Required by Hotels Restaurants Travel Agents Tour Operators and other Specified Categories bull Hotels including tourist hotels recognised by Director General of Tourism Government of India or a State Government shall
be entitled to import Authorisation upto a value of 25 of foreign exchange earned by them from foreign tourists during preceding licensing year for import of essential goods related to hotel and tourism industry
bull Travel agents tour operators restaurants and tourist transport operators and other units for tourism like adventure wildlife and convention units recognized by Director General of Tourism Government of India shall be entitled to import authorisation up to a value of 10 of foreign exchange earned by them during preceding licensing year for import of essential goods which are restricted for imports related to travel and tourism industry including office and other equipmentrequired for their own professional use
bull Such imported goods may be transferred after 2 years with permission of DGFT No permission for transfer will be required in case the imported goods are re-exported However re-export shall be subject to all conditionality or requirement of licence or permission as may be required under Schedule II of ITC (HS)
bull An application for grant of an Authorisation to be made in ANF 2 M to DGFT through Director of Tourism Government of India who will forward application to RA concerned along with their recommendations
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of Restricted items for RampD by units of Government
All restricted items and items permitted to be imported by STEs except live animals required for RampD purpose may be imported without an Authorisation by Government recognized Research and Development units
Import for export a) Goods imported in accordance with FTP may be exported in same or substantially the same form without an
Authorisation provided that item to be imported or exported is not restricted for import or export in ITC (HS)
bull (b) Goods including capital goods (both new and second hand) may be imported for export provided
ndash Importer clears goods under Customs Bond
ndash Goods are freely exportable ie are not ldquorestrictedrdquo ldquoprohibitedrdquo subject to ldquoexclusive trading through State
Trading Enterprisesrdquo or any conditionality requirement as may be required under Schedule 2 ndash Export Policy of the
ITC (HS)
ndash Export is against freely convertible currency
bull (c) Goods in (b) above will include lsquorestrictedrsquo goods for import (except lsquoprohibitedrsquo items)
bull Export of repaired goods ldquoGoods or parts thereof except restricted under ITC (HS) on being exported and found defective
damaged or otherwise unfit for use may be imported for repair and subsequent re-export Such goods shall be allowed
clearance without an Authorisation and in accordance with customs notification unless imported exclusively for undertaking
root cause analysis testing and evaluation purpose
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Duties and GST- Applicability to International Trade
GST- Imports Import of goods into India is treated as interstate supply Therefore IGST is levied on import of goodsAfter introduction of GST CVD and SAD have been replaced with Integrated Goods and Service Tax IGSTIGST and Basic Customs Duty are the main components in determining the total import duty payable to customs at the time of Import of Goods into IndiaIn imports IGST is computed on transaction value of imported goods plus duties and taxes etc charged under any statute other than the GST Law
GST- ExportsExports are treated as zero rated supplies No tax will be payable on exports of goods or services however credit of input taxcredit will be available and same will be available as refund to the exporters
Duties Applicable to ImportsBasic Customs DutyAdditional Duty of customsAntidumping DutyTariff DutySafeguard DutyIGST Levy
These duties are not applicable to all imports
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Legislative amp governance framework Schemes MEIS amp SEIS
a) MEISb) SEIS
Duty exemption Schemesa) Advance Authorization Annual Advance Authorizationb) Duty Free Import Authorization
Raw materials amp inputs
Allows duty free import of raw materials for export production
Export Promotion Capital Goods Scheme (EPCG Scheme)Capital Goods amp
Machinery
Allows duty free import of machinery amp equipment for export production amp services
Finished GoodsDuty Credit scrips are provided against exports that can be used to pay duties taxes
SEZs EOUs FTWZsInternational
Markets
TED exemptions refund for DTAs
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Ecosystem MappingGovernment bodies and agencies involved
Dissects and analyses information on Indiarsquos trade performance with focus on improvement of exports
Deals with international trade in tea coffee rubber and notifiedspices Also implements statutory and policy framework forproduction development and marketing of related commodities
Is responsible for matters related to agriculture NAMA disputes andrules SPS TBT TRIPS environment labour amp services tradefacilitation wrt functions of WTO amp international bodies
Deals with trade promotion policy negotiation amp other relatedactivities with regions amp countries (Africa NAFTA Latin AmericaEurope ASEAN etc)
Facilitates amp promotes exports in agriculture marine leather amp sportsgoods gems amp jewellery engineering goods etc
Deals with appointments for various positions maintenance of service records fixation of pay and grantof leave gratuity etc for Gazetted and Non-gazetted Officers
Preparation amp monitoring of budget of the Department of Commerce advice and review of financialexpenditure monitoring of schemes release of grants etc
Cadre management administration vigilance policies amp procedures relating to purchase inspections amppayments etc
Responsible for export and market development assistance tradefinance implementation amp monitoring of lsquoAssistance to States forDeveloping Export Infrastructure and other Allied Activities (ASIDE)rsquomatters related to EPZs EOUs etc
Ministry of Commerce and Industry
International Trade Policy Division
Foreign Trade Territorial Division
Export Products Division
Export Industries Division
Export Services Division
Economic Division
Administration amp General Service Division
Finance Division
Supply Division
Ecosystem MappingGovernment bodies and agencies involved
Responsible for implementing FTP with the aim of promoting exports DGFT also issues licenses to exporters and monitors their obligations All ROs provide facilitation to exporters wrt International Trade ie WTO agreements Rules of Origin and anti-dumping issues etc Website httpdgftgovin
DIRECTORATE GENERAL OF FOREIGN TRADE (DGFT)
Functions as the executive arm of the Supply Division of the Department of Commerce for conclusion of Rate Contracts for common user items procurement of stores etc
DIRECTORATE GENERAL OF SUPPLIES AND DISPOSALS
(DGSD)
Responsible for carrying out investigations and recommending where required under the Customs Tariff Act the amount of anti-dumping duty countervailing duty on the identified articles as would be adequate to remove injury to the domestic industry
DIRECTORATE GENERAL OF ANTI-DUMPING AND
ALLIED DUTIES (DGAD)
Entrusted with the work of collecting compiling and publishing disseminating trade statistics and various types of commercial information required by the policy makers researchers importers exporters traders and overseas buyers
DIRECTORATE GENERAL OF COMMERCIAL
INTELLIGENCE amp STATISTICS(DGCIampS)
The payment amp accounting of Supply Division including those of DGSampD are performed by the Office of Chief Controller of Accounts (Supply Division) under the Departmentalized Accounting System Payment to suppliers are made through this organization at New Delhi Kolkata Mumbai and Chennai
PAY AND ACCOUNT OFFICE (SUPPLY COMMERCE AND
TEXTILES)
The main objectives of the SEZ is generation of additional economic activity promotion of exports of goods and services promotion of investment from domestic and foreign sources creation of employment opportunities along with the development of infrastructure facilities
SPECIAL ECONOMIC ZONES
Ecosystem MappingSupporting Agencies PSUs handling EXIM
Undertakes exports imports of a diverse range of items tofrom countries all over the world Also monitors counter trade commitments against Government purchases and import of technical and scientific equipment on behalf of Forensic Science Laboratories Paramilitary Organisations etc
STATE TRADING CORPORATION (STC)
Created in 1963 as an independent entity on separation from State Trading Corporation of India Ltd primarily to deal in exports of minerals and ores and imports of non-ferrous metals MMTC also imports and export various other items like steel diamonds bullion agro hydrocarbon etc
An export promotion organization seeking to improve the competitiveness of the Indian exports by providing them with credit insurance covers It manages credit risks through insurance covers for exporters as well as banks worthiness analysis of buyers bankers countries etc
EXPORT CREDIT GUARANTEE
CORPORATION OF INDIA LIMITED
A premier trade promotion agency of India and acts as a catalyst for growth of Indiarsquos trade through participation in Indian and international trade fairs supporting in access to market for SMEs dissemination of trade information for e-commerce etc
INDIA TRADE PROMOTION
ORGANISATION
METALS amp MINERALS TRADING CORPORATION
OF INDIA(MMTC)
Deals with export of projects engineering equipment amp manufactured goods defence equipment amp stores import of industrial raw materials bullion and agro commodities diversification in export of non-engineering items edible oils steel scraps etc and structuring counter trade special trading
PEC LIMITED
Ecosystem MappingSupporting Agencies Autonomous bodies
Responsible for development of the marine products industry with special reference to exports Its focus area includes facilitating enhanced export of marine products from the country
MARINE PRODUCTS EXPORT DEVELOPMENT
AUTHORITY
Actively engaged in development of markets and up gradation of infrastructure to promote export of agro products Provides financial assistance to the registered exporters It supervises export promotion of 14 agricultural and processed food product groups listed in the Schedule to the APEDA Act
5 statutory Commodity Boards under the Department of Commerce are responsible for production development and export of tea coffee rubber spices and tobaccoCOMMODITY BOARDS
Role of EIC is to ensure that products notified under the Export (Quality Control and Inspection) Act 1963 are meeting the requirements of the importing countries in respect of their quality and safetyEXPORT INSPECTION
COUNCIL(EIC)
AGRICULTURAL amp PROCESSED FOOD
PRODUCTS EXPORT DEVELOPMENT AUTHORITY
Indian Institute of Plantations Management Indian Institute of Packaging amp Indian Institute of Foreign Trade are set up as autonomous institutions by the Ministry of Commerce Rstablished for education research training development and consultancy to the industry and agencies in these sectors
EDUCATION amp RESEARCH INSTITUTES
EEPC India is the premier trade and investment promotion organization in India It is sponsored by the Ministry of Commerce amp Industry It is an advisory body that actively contributes to the policies of Government of India and acts as an interface between the engineering industry and the Government
ENGINEERING EXPORT PROMOTION COUNCIL
(EEPC)
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
5
7
3
4
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of specific categories of goods bull Import of samples bull (a) No Authorisation shall be required for Import of bonafide technical and trade samples of items restricted in ITC (HS)
except vegetable seeds bees and new drugs Samples of tea not exceeding INR 2000 (CIF) in one consignment shall be allowed without an Authorisation by any person connected with Tea industry
bull (b) Duty free import of samples upto INR 300000 for all exporters shall be allowed as per terms and conditions of Customs Notification
bull Re ndash import of goods repaired abroad ndash Capital goods equipment components parts and accessories whether imported or indigenous except those 42
restricted under ITC (HS) may be sent abroad for repairs testing quality improvement or upgradation or standardization of technology and re-imported without an Authorisation
bull Import of goods used in projects abroad ndash Project contractors after completion of projects abroad may import without an Authorisation goods including capital
goods used in the project provided they have been used for at least one year bull Import Policy for Second Hand Goods
Category Conditions
i Personal computers laptops including refurbished re-conditioned spares
ii Photocopier machines Digital multifunction Print amp Copying Machines
iii Air conditioners
iv Diesel generating sets
Restricted ( Importable against authorization)
Refurbished re-conditioned spares of Capital Goods Free (Subject to production of Chartered Engineer
certificate to the effect that such spares have at
least 80 residual life of original spare)
All other second hand capital goods other than (a) amp (b) above Free
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of restricted goods An application for grant of an Authorisation for import or export of items mentioned as lsquoRestrictedrsquo in ITC (HS) may be made to RA with a copy to DGFT Hqrs in ANF 2M along with documents prescribed therein Original application along with Treasury Receipt (TR) Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA
Restricted item Authorisation may be granted by DGFT or any other RA authorised by him in this behalf
Import of Restricted Items Required by Hotels Restaurants Travel Agents Tour Operators and other Specified Categories bull Hotels including tourist hotels recognised by Director General of Tourism Government of India or a State Government shall
be entitled to import Authorisation upto a value of 25 of foreign exchange earned by them from foreign tourists during preceding licensing year for import of essential goods related to hotel and tourism industry
bull Travel agents tour operators restaurants and tourist transport operators and other units for tourism like adventure wildlife and convention units recognized by Director General of Tourism Government of India shall be entitled to import authorisation up to a value of 10 of foreign exchange earned by them during preceding licensing year for import of essential goods which are restricted for imports related to travel and tourism industry including office and other equipmentrequired for their own professional use
bull Such imported goods may be transferred after 2 years with permission of DGFT No permission for transfer will be required in case the imported goods are re-exported However re-export shall be subject to all conditionality or requirement of licence or permission as may be required under Schedule II of ITC (HS)
bull An application for grant of an Authorisation to be made in ANF 2 M to DGFT through Director of Tourism Government of India who will forward application to RA concerned along with their recommendations
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of Restricted items for RampD by units of Government
All restricted items and items permitted to be imported by STEs except live animals required for RampD purpose may be imported without an Authorisation by Government recognized Research and Development units
Import for export a) Goods imported in accordance with FTP may be exported in same or substantially the same form without an
Authorisation provided that item to be imported or exported is not restricted for import or export in ITC (HS)
bull (b) Goods including capital goods (both new and second hand) may be imported for export provided
ndash Importer clears goods under Customs Bond
ndash Goods are freely exportable ie are not ldquorestrictedrdquo ldquoprohibitedrdquo subject to ldquoexclusive trading through State
Trading Enterprisesrdquo or any conditionality requirement as may be required under Schedule 2 ndash Export Policy of the
ITC (HS)
ndash Export is against freely convertible currency
bull (c) Goods in (b) above will include lsquorestrictedrsquo goods for import (except lsquoprohibitedrsquo items)
bull Export of repaired goods ldquoGoods or parts thereof except restricted under ITC (HS) on being exported and found defective
damaged or otherwise unfit for use may be imported for repair and subsequent re-export Such goods shall be allowed
clearance without an Authorisation and in accordance with customs notification unless imported exclusively for undertaking
root cause analysis testing and evaluation purpose
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Duties and GST- Applicability to International Trade
GST- Imports Import of goods into India is treated as interstate supply Therefore IGST is levied on import of goodsAfter introduction of GST CVD and SAD have been replaced with Integrated Goods and Service Tax IGSTIGST and Basic Customs Duty are the main components in determining the total import duty payable to customs at the time of Import of Goods into IndiaIn imports IGST is computed on transaction value of imported goods plus duties and taxes etc charged under any statute other than the GST Law
GST- ExportsExports are treated as zero rated supplies No tax will be payable on exports of goods or services however credit of input taxcredit will be available and same will be available as refund to the exporters
Duties Applicable to ImportsBasic Customs DutyAdditional Duty of customsAntidumping DutyTariff DutySafeguard DutyIGST Levy
These duties are not applicable to all imports
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Legislative amp governance framework Schemes MEIS amp SEIS
a) MEISb) SEIS
Duty exemption Schemesa) Advance Authorization Annual Advance Authorizationb) Duty Free Import Authorization
Raw materials amp inputs
Allows duty free import of raw materials for export production
Export Promotion Capital Goods Scheme (EPCG Scheme)Capital Goods amp
Machinery
Allows duty free import of machinery amp equipment for export production amp services
Finished GoodsDuty Credit scrips are provided against exports that can be used to pay duties taxes
SEZs EOUs FTWZsInternational
Markets
TED exemptions refund for DTAs
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Ecosystem MappingGovernment bodies and agencies involved
Responsible for implementing FTP with the aim of promoting exports DGFT also issues licenses to exporters and monitors their obligations All ROs provide facilitation to exporters wrt International Trade ie WTO agreements Rules of Origin and anti-dumping issues etc Website httpdgftgovin
DIRECTORATE GENERAL OF FOREIGN TRADE (DGFT)
Functions as the executive arm of the Supply Division of the Department of Commerce for conclusion of Rate Contracts for common user items procurement of stores etc
DIRECTORATE GENERAL OF SUPPLIES AND DISPOSALS
(DGSD)
Responsible for carrying out investigations and recommending where required under the Customs Tariff Act the amount of anti-dumping duty countervailing duty on the identified articles as would be adequate to remove injury to the domestic industry
DIRECTORATE GENERAL OF ANTI-DUMPING AND
ALLIED DUTIES (DGAD)
Entrusted with the work of collecting compiling and publishing disseminating trade statistics and various types of commercial information required by the policy makers researchers importers exporters traders and overseas buyers
DIRECTORATE GENERAL OF COMMERCIAL
INTELLIGENCE amp STATISTICS(DGCIampS)
The payment amp accounting of Supply Division including those of DGSampD are performed by the Office of Chief Controller of Accounts (Supply Division) under the Departmentalized Accounting System Payment to suppliers are made through this organization at New Delhi Kolkata Mumbai and Chennai
PAY AND ACCOUNT OFFICE (SUPPLY COMMERCE AND
TEXTILES)
The main objectives of the SEZ is generation of additional economic activity promotion of exports of goods and services promotion of investment from domestic and foreign sources creation of employment opportunities along with the development of infrastructure facilities
SPECIAL ECONOMIC ZONES
Ecosystem MappingSupporting Agencies PSUs handling EXIM
Undertakes exports imports of a diverse range of items tofrom countries all over the world Also monitors counter trade commitments against Government purchases and import of technical and scientific equipment on behalf of Forensic Science Laboratories Paramilitary Organisations etc
STATE TRADING CORPORATION (STC)
Created in 1963 as an independent entity on separation from State Trading Corporation of India Ltd primarily to deal in exports of minerals and ores and imports of non-ferrous metals MMTC also imports and export various other items like steel diamonds bullion agro hydrocarbon etc
An export promotion organization seeking to improve the competitiveness of the Indian exports by providing them with credit insurance covers It manages credit risks through insurance covers for exporters as well as banks worthiness analysis of buyers bankers countries etc
EXPORT CREDIT GUARANTEE
CORPORATION OF INDIA LIMITED
A premier trade promotion agency of India and acts as a catalyst for growth of Indiarsquos trade through participation in Indian and international trade fairs supporting in access to market for SMEs dissemination of trade information for e-commerce etc
INDIA TRADE PROMOTION
ORGANISATION
METALS amp MINERALS TRADING CORPORATION
OF INDIA(MMTC)
Deals with export of projects engineering equipment amp manufactured goods defence equipment amp stores import of industrial raw materials bullion and agro commodities diversification in export of non-engineering items edible oils steel scraps etc and structuring counter trade special trading
PEC LIMITED
Ecosystem MappingSupporting Agencies Autonomous bodies
Responsible for development of the marine products industry with special reference to exports Its focus area includes facilitating enhanced export of marine products from the country
MARINE PRODUCTS EXPORT DEVELOPMENT
AUTHORITY
Actively engaged in development of markets and up gradation of infrastructure to promote export of agro products Provides financial assistance to the registered exporters It supervises export promotion of 14 agricultural and processed food product groups listed in the Schedule to the APEDA Act
5 statutory Commodity Boards under the Department of Commerce are responsible for production development and export of tea coffee rubber spices and tobaccoCOMMODITY BOARDS
Role of EIC is to ensure that products notified under the Export (Quality Control and Inspection) Act 1963 are meeting the requirements of the importing countries in respect of their quality and safetyEXPORT INSPECTION
COUNCIL(EIC)
AGRICULTURAL amp PROCESSED FOOD
PRODUCTS EXPORT DEVELOPMENT AUTHORITY
Indian Institute of Plantations Management Indian Institute of Packaging amp Indian Institute of Foreign Trade are set up as autonomous institutions by the Ministry of Commerce Rstablished for education research training development and consultancy to the industry and agencies in these sectors
EDUCATION amp RESEARCH INSTITUTES
EEPC India is the premier trade and investment promotion organization in India It is sponsored by the Ministry of Commerce amp Industry It is an advisory body that actively contributes to the policies of Government of India and acts as an interface between the engineering industry and the Government
ENGINEERING EXPORT PROMOTION COUNCIL
(EEPC)
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
5
7
3
4
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of specific categories of goods bull Import of samples bull (a) No Authorisation shall be required for Import of bonafide technical and trade samples of items restricted in ITC (HS)
except vegetable seeds bees and new drugs Samples of tea not exceeding INR 2000 (CIF) in one consignment shall be allowed without an Authorisation by any person connected with Tea industry
bull (b) Duty free import of samples upto INR 300000 for all exporters shall be allowed as per terms and conditions of Customs Notification
bull Re ndash import of goods repaired abroad ndash Capital goods equipment components parts and accessories whether imported or indigenous except those 42
restricted under ITC (HS) may be sent abroad for repairs testing quality improvement or upgradation or standardization of technology and re-imported without an Authorisation
bull Import of goods used in projects abroad ndash Project contractors after completion of projects abroad may import without an Authorisation goods including capital
goods used in the project provided they have been used for at least one year bull Import Policy for Second Hand Goods
Category Conditions
i Personal computers laptops including refurbished re-conditioned spares
ii Photocopier machines Digital multifunction Print amp Copying Machines
iii Air conditioners
iv Diesel generating sets
Restricted ( Importable against authorization)
Refurbished re-conditioned spares of Capital Goods Free (Subject to production of Chartered Engineer
certificate to the effect that such spares have at
least 80 residual life of original spare)
All other second hand capital goods other than (a) amp (b) above Free
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of restricted goods An application for grant of an Authorisation for import or export of items mentioned as lsquoRestrictedrsquo in ITC (HS) may be made to RA with a copy to DGFT Hqrs in ANF 2M along with documents prescribed therein Original application along with Treasury Receipt (TR) Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA
Restricted item Authorisation may be granted by DGFT or any other RA authorised by him in this behalf
Import of Restricted Items Required by Hotels Restaurants Travel Agents Tour Operators and other Specified Categories bull Hotels including tourist hotels recognised by Director General of Tourism Government of India or a State Government shall
be entitled to import Authorisation upto a value of 25 of foreign exchange earned by them from foreign tourists during preceding licensing year for import of essential goods related to hotel and tourism industry
bull Travel agents tour operators restaurants and tourist transport operators and other units for tourism like adventure wildlife and convention units recognized by Director General of Tourism Government of India shall be entitled to import authorisation up to a value of 10 of foreign exchange earned by them during preceding licensing year for import of essential goods which are restricted for imports related to travel and tourism industry including office and other equipmentrequired for their own professional use
bull Such imported goods may be transferred after 2 years with permission of DGFT No permission for transfer will be required in case the imported goods are re-exported However re-export shall be subject to all conditionality or requirement of licence or permission as may be required under Schedule II of ITC (HS)
bull An application for grant of an Authorisation to be made in ANF 2 M to DGFT through Director of Tourism Government of India who will forward application to RA concerned along with their recommendations
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of Restricted items for RampD by units of Government
All restricted items and items permitted to be imported by STEs except live animals required for RampD purpose may be imported without an Authorisation by Government recognized Research and Development units
Import for export a) Goods imported in accordance with FTP may be exported in same or substantially the same form without an
Authorisation provided that item to be imported or exported is not restricted for import or export in ITC (HS)
bull (b) Goods including capital goods (both new and second hand) may be imported for export provided
ndash Importer clears goods under Customs Bond
ndash Goods are freely exportable ie are not ldquorestrictedrdquo ldquoprohibitedrdquo subject to ldquoexclusive trading through State
Trading Enterprisesrdquo or any conditionality requirement as may be required under Schedule 2 ndash Export Policy of the
ITC (HS)
ndash Export is against freely convertible currency
bull (c) Goods in (b) above will include lsquorestrictedrsquo goods for import (except lsquoprohibitedrsquo items)
bull Export of repaired goods ldquoGoods or parts thereof except restricted under ITC (HS) on being exported and found defective
damaged or otherwise unfit for use may be imported for repair and subsequent re-export Such goods shall be allowed
clearance without an Authorisation and in accordance with customs notification unless imported exclusively for undertaking
root cause analysis testing and evaluation purpose
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Duties and GST- Applicability to International Trade
GST- Imports Import of goods into India is treated as interstate supply Therefore IGST is levied on import of goodsAfter introduction of GST CVD and SAD have been replaced with Integrated Goods and Service Tax IGSTIGST and Basic Customs Duty are the main components in determining the total import duty payable to customs at the time of Import of Goods into IndiaIn imports IGST is computed on transaction value of imported goods plus duties and taxes etc charged under any statute other than the GST Law
GST- ExportsExports are treated as zero rated supplies No tax will be payable on exports of goods or services however credit of input taxcredit will be available and same will be available as refund to the exporters
Duties Applicable to ImportsBasic Customs DutyAdditional Duty of customsAntidumping DutyTariff DutySafeguard DutyIGST Levy
These duties are not applicable to all imports
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Legislative amp governance framework Schemes MEIS amp SEIS
a) MEISb) SEIS
Duty exemption Schemesa) Advance Authorization Annual Advance Authorizationb) Duty Free Import Authorization
Raw materials amp inputs
Allows duty free import of raw materials for export production
Export Promotion Capital Goods Scheme (EPCG Scheme)Capital Goods amp
Machinery
Allows duty free import of machinery amp equipment for export production amp services
Finished GoodsDuty Credit scrips are provided against exports that can be used to pay duties taxes
SEZs EOUs FTWZsInternational
Markets
TED exemptions refund for DTAs
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Ecosystem MappingSupporting Agencies PSUs handling EXIM
Undertakes exports imports of a diverse range of items tofrom countries all over the world Also monitors counter trade commitments against Government purchases and import of technical and scientific equipment on behalf of Forensic Science Laboratories Paramilitary Organisations etc
STATE TRADING CORPORATION (STC)
Created in 1963 as an independent entity on separation from State Trading Corporation of India Ltd primarily to deal in exports of minerals and ores and imports of non-ferrous metals MMTC also imports and export various other items like steel diamonds bullion agro hydrocarbon etc
An export promotion organization seeking to improve the competitiveness of the Indian exports by providing them with credit insurance covers It manages credit risks through insurance covers for exporters as well as banks worthiness analysis of buyers bankers countries etc
EXPORT CREDIT GUARANTEE
CORPORATION OF INDIA LIMITED
A premier trade promotion agency of India and acts as a catalyst for growth of Indiarsquos trade through participation in Indian and international trade fairs supporting in access to market for SMEs dissemination of trade information for e-commerce etc
INDIA TRADE PROMOTION
ORGANISATION
METALS amp MINERALS TRADING CORPORATION
OF INDIA(MMTC)
Deals with export of projects engineering equipment amp manufactured goods defence equipment amp stores import of industrial raw materials bullion and agro commodities diversification in export of non-engineering items edible oils steel scraps etc and structuring counter trade special trading
PEC LIMITED
Ecosystem MappingSupporting Agencies Autonomous bodies
Responsible for development of the marine products industry with special reference to exports Its focus area includes facilitating enhanced export of marine products from the country
MARINE PRODUCTS EXPORT DEVELOPMENT
AUTHORITY
Actively engaged in development of markets and up gradation of infrastructure to promote export of agro products Provides financial assistance to the registered exporters It supervises export promotion of 14 agricultural and processed food product groups listed in the Schedule to the APEDA Act
5 statutory Commodity Boards under the Department of Commerce are responsible for production development and export of tea coffee rubber spices and tobaccoCOMMODITY BOARDS
Role of EIC is to ensure that products notified under the Export (Quality Control and Inspection) Act 1963 are meeting the requirements of the importing countries in respect of their quality and safetyEXPORT INSPECTION
COUNCIL(EIC)
AGRICULTURAL amp PROCESSED FOOD
PRODUCTS EXPORT DEVELOPMENT AUTHORITY
Indian Institute of Plantations Management Indian Institute of Packaging amp Indian Institute of Foreign Trade are set up as autonomous institutions by the Ministry of Commerce Rstablished for education research training development and consultancy to the industry and agencies in these sectors
EDUCATION amp RESEARCH INSTITUTES
EEPC India is the premier trade and investment promotion organization in India It is sponsored by the Ministry of Commerce amp Industry It is an advisory body that actively contributes to the policies of Government of India and acts as an interface between the engineering industry and the Government
ENGINEERING EXPORT PROMOTION COUNCIL
(EEPC)
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
5
7
3
4
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of specific categories of goods bull Import of samples bull (a) No Authorisation shall be required for Import of bonafide technical and trade samples of items restricted in ITC (HS)
except vegetable seeds bees and new drugs Samples of tea not exceeding INR 2000 (CIF) in one consignment shall be allowed without an Authorisation by any person connected with Tea industry
bull (b) Duty free import of samples upto INR 300000 for all exporters shall be allowed as per terms and conditions of Customs Notification
bull Re ndash import of goods repaired abroad ndash Capital goods equipment components parts and accessories whether imported or indigenous except those 42
restricted under ITC (HS) may be sent abroad for repairs testing quality improvement or upgradation or standardization of technology and re-imported without an Authorisation
bull Import of goods used in projects abroad ndash Project contractors after completion of projects abroad may import without an Authorisation goods including capital
goods used in the project provided they have been used for at least one year bull Import Policy for Second Hand Goods
Category Conditions
i Personal computers laptops including refurbished re-conditioned spares
ii Photocopier machines Digital multifunction Print amp Copying Machines
iii Air conditioners
iv Diesel generating sets
Restricted ( Importable against authorization)
Refurbished re-conditioned spares of Capital Goods Free (Subject to production of Chartered Engineer
certificate to the effect that such spares have at
least 80 residual life of original spare)
All other second hand capital goods other than (a) amp (b) above Free
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of restricted goods An application for grant of an Authorisation for import or export of items mentioned as lsquoRestrictedrsquo in ITC (HS) may be made to RA with a copy to DGFT Hqrs in ANF 2M along with documents prescribed therein Original application along with Treasury Receipt (TR) Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA
Restricted item Authorisation may be granted by DGFT or any other RA authorised by him in this behalf
Import of Restricted Items Required by Hotels Restaurants Travel Agents Tour Operators and other Specified Categories bull Hotels including tourist hotels recognised by Director General of Tourism Government of India or a State Government shall
be entitled to import Authorisation upto a value of 25 of foreign exchange earned by them from foreign tourists during preceding licensing year for import of essential goods related to hotel and tourism industry
bull Travel agents tour operators restaurants and tourist transport operators and other units for tourism like adventure wildlife and convention units recognized by Director General of Tourism Government of India shall be entitled to import authorisation up to a value of 10 of foreign exchange earned by them during preceding licensing year for import of essential goods which are restricted for imports related to travel and tourism industry including office and other equipmentrequired for their own professional use
bull Such imported goods may be transferred after 2 years with permission of DGFT No permission for transfer will be required in case the imported goods are re-exported However re-export shall be subject to all conditionality or requirement of licence or permission as may be required under Schedule II of ITC (HS)
bull An application for grant of an Authorisation to be made in ANF 2 M to DGFT through Director of Tourism Government of India who will forward application to RA concerned along with their recommendations
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of Restricted items for RampD by units of Government
All restricted items and items permitted to be imported by STEs except live animals required for RampD purpose may be imported without an Authorisation by Government recognized Research and Development units
Import for export a) Goods imported in accordance with FTP may be exported in same or substantially the same form without an
Authorisation provided that item to be imported or exported is not restricted for import or export in ITC (HS)
bull (b) Goods including capital goods (both new and second hand) may be imported for export provided
ndash Importer clears goods under Customs Bond
ndash Goods are freely exportable ie are not ldquorestrictedrdquo ldquoprohibitedrdquo subject to ldquoexclusive trading through State
Trading Enterprisesrdquo or any conditionality requirement as may be required under Schedule 2 ndash Export Policy of the
ITC (HS)
ndash Export is against freely convertible currency
bull (c) Goods in (b) above will include lsquorestrictedrsquo goods for import (except lsquoprohibitedrsquo items)
bull Export of repaired goods ldquoGoods or parts thereof except restricted under ITC (HS) on being exported and found defective
damaged or otherwise unfit for use may be imported for repair and subsequent re-export Such goods shall be allowed
clearance without an Authorisation and in accordance with customs notification unless imported exclusively for undertaking
root cause analysis testing and evaluation purpose
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Duties and GST- Applicability to International Trade
GST- Imports Import of goods into India is treated as interstate supply Therefore IGST is levied on import of goodsAfter introduction of GST CVD and SAD have been replaced with Integrated Goods and Service Tax IGSTIGST and Basic Customs Duty are the main components in determining the total import duty payable to customs at the time of Import of Goods into IndiaIn imports IGST is computed on transaction value of imported goods plus duties and taxes etc charged under any statute other than the GST Law
GST- ExportsExports are treated as zero rated supplies No tax will be payable on exports of goods or services however credit of input taxcredit will be available and same will be available as refund to the exporters
Duties Applicable to ImportsBasic Customs DutyAdditional Duty of customsAntidumping DutyTariff DutySafeguard DutyIGST Levy
These duties are not applicable to all imports
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Legislative amp governance framework Schemes MEIS amp SEIS
a) MEISb) SEIS
Duty exemption Schemesa) Advance Authorization Annual Advance Authorizationb) Duty Free Import Authorization
Raw materials amp inputs
Allows duty free import of raw materials for export production
Export Promotion Capital Goods Scheme (EPCG Scheme)Capital Goods amp
Machinery
Allows duty free import of machinery amp equipment for export production amp services
Finished GoodsDuty Credit scrips are provided against exports that can be used to pay duties taxes
SEZs EOUs FTWZsInternational
Markets
TED exemptions refund for DTAs
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Ecosystem MappingSupporting Agencies Autonomous bodies
Responsible for development of the marine products industry with special reference to exports Its focus area includes facilitating enhanced export of marine products from the country
MARINE PRODUCTS EXPORT DEVELOPMENT
AUTHORITY
Actively engaged in development of markets and up gradation of infrastructure to promote export of agro products Provides financial assistance to the registered exporters It supervises export promotion of 14 agricultural and processed food product groups listed in the Schedule to the APEDA Act
5 statutory Commodity Boards under the Department of Commerce are responsible for production development and export of tea coffee rubber spices and tobaccoCOMMODITY BOARDS
Role of EIC is to ensure that products notified under the Export (Quality Control and Inspection) Act 1963 are meeting the requirements of the importing countries in respect of their quality and safetyEXPORT INSPECTION
COUNCIL(EIC)
AGRICULTURAL amp PROCESSED FOOD
PRODUCTS EXPORT DEVELOPMENT AUTHORITY
Indian Institute of Plantations Management Indian Institute of Packaging amp Indian Institute of Foreign Trade are set up as autonomous institutions by the Ministry of Commerce Rstablished for education research training development and consultancy to the industry and agencies in these sectors
EDUCATION amp RESEARCH INSTITUTES
EEPC India is the premier trade and investment promotion organization in India It is sponsored by the Ministry of Commerce amp Industry It is an advisory body that actively contributes to the policies of Government of India and acts as an interface between the engineering industry and the Government
ENGINEERING EXPORT PROMOTION COUNCIL
(EEPC)
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
5
7
3
4
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of specific categories of goods bull Import of samples bull (a) No Authorisation shall be required for Import of bonafide technical and trade samples of items restricted in ITC (HS)
except vegetable seeds bees and new drugs Samples of tea not exceeding INR 2000 (CIF) in one consignment shall be allowed without an Authorisation by any person connected with Tea industry
bull (b) Duty free import of samples upto INR 300000 for all exporters shall be allowed as per terms and conditions of Customs Notification
bull Re ndash import of goods repaired abroad ndash Capital goods equipment components parts and accessories whether imported or indigenous except those 42
restricted under ITC (HS) may be sent abroad for repairs testing quality improvement or upgradation or standardization of technology and re-imported without an Authorisation
bull Import of goods used in projects abroad ndash Project contractors after completion of projects abroad may import without an Authorisation goods including capital
goods used in the project provided they have been used for at least one year bull Import Policy for Second Hand Goods
Category Conditions
i Personal computers laptops including refurbished re-conditioned spares
ii Photocopier machines Digital multifunction Print amp Copying Machines
iii Air conditioners
iv Diesel generating sets
Restricted ( Importable against authorization)
Refurbished re-conditioned spares of Capital Goods Free (Subject to production of Chartered Engineer
certificate to the effect that such spares have at
least 80 residual life of original spare)
All other second hand capital goods other than (a) amp (b) above Free
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of restricted goods An application for grant of an Authorisation for import or export of items mentioned as lsquoRestrictedrsquo in ITC (HS) may be made to RA with a copy to DGFT Hqrs in ANF 2M along with documents prescribed therein Original application along with Treasury Receipt (TR) Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA
Restricted item Authorisation may be granted by DGFT or any other RA authorised by him in this behalf
Import of Restricted Items Required by Hotels Restaurants Travel Agents Tour Operators and other Specified Categories bull Hotels including tourist hotels recognised by Director General of Tourism Government of India or a State Government shall
be entitled to import Authorisation upto a value of 25 of foreign exchange earned by them from foreign tourists during preceding licensing year for import of essential goods related to hotel and tourism industry
bull Travel agents tour operators restaurants and tourist transport operators and other units for tourism like adventure wildlife and convention units recognized by Director General of Tourism Government of India shall be entitled to import authorisation up to a value of 10 of foreign exchange earned by them during preceding licensing year for import of essential goods which are restricted for imports related to travel and tourism industry including office and other equipmentrequired for their own professional use
bull Such imported goods may be transferred after 2 years with permission of DGFT No permission for transfer will be required in case the imported goods are re-exported However re-export shall be subject to all conditionality or requirement of licence or permission as may be required under Schedule II of ITC (HS)
bull An application for grant of an Authorisation to be made in ANF 2 M to DGFT through Director of Tourism Government of India who will forward application to RA concerned along with their recommendations
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of Restricted items for RampD by units of Government
All restricted items and items permitted to be imported by STEs except live animals required for RampD purpose may be imported without an Authorisation by Government recognized Research and Development units
Import for export a) Goods imported in accordance with FTP may be exported in same or substantially the same form without an
Authorisation provided that item to be imported or exported is not restricted for import or export in ITC (HS)
bull (b) Goods including capital goods (both new and second hand) may be imported for export provided
ndash Importer clears goods under Customs Bond
ndash Goods are freely exportable ie are not ldquorestrictedrdquo ldquoprohibitedrdquo subject to ldquoexclusive trading through State
Trading Enterprisesrdquo or any conditionality requirement as may be required under Schedule 2 ndash Export Policy of the
ITC (HS)
ndash Export is against freely convertible currency
bull (c) Goods in (b) above will include lsquorestrictedrsquo goods for import (except lsquoprohibitedrsquo items)
bull Export of repaired goods ldquoGoods or parts thereof except restricted under ITC (HS) on being exported and found defective
damaged or otherwise unfit for use may be imported for repair and subsequent re-export Such goods shall be allowed
clearance without an Authorisation and in accordance with customs notification unless imported exclusively for undertaking
root cause analysis testing and evaluation purpose
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Duties and GST- Applicability to International Trade
GST- Imports Import of goods into India is treated as interstate supply Therefore IGST is levied on import of goodsAfter introduction of GST CVD and SAD have been replaced with Integrated Goods and Service Tax IGSTIGST and Basic Customs Duty are the main components in determining the total import duty payable to customs at the time of Import of Goods into IndiaIn imports IGST is computed on transaction value of imported goods plus duties and taxes etc charged under any statute other than the GST Law
GST- ExportsExports are treated as zero rated supplies No tax will be payable on exports of goods or services however credit of input taxcredit will be available and same will be available as refund to the exporters
Duties Applicable to ImportsBasic Customs DutyAdditional Duty of customsAntidumping DutyTariff DutySafeguard DutyIGST Levy
These duties are not applicable to all imports
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Legislative amp governance framework Schemes MEIS amp SEIS
a) MEISb) SEIS
Duty exemption Schemesa) Advance Authorization Annual Advance Authorizationb) Duty Free Import Authorization
Raw materials amp inputs
Allows duty free import of raw materials for export production
Export Promotion Capital Goods Scheme (EPCG Scheme)Capital Goods amp
Machinery
Allows duty free import of machinery amp equipment for export production amp services
Finished GoodsDuty Credit scrips are provided against exports that can be used to pay duties taxes
SEZs EOUs FTWZsInternational
Markets
TED exemptions refund for DTAs
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
5
7
3
4
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of specific categories of goods bull Import of samples bull (a) No Authorisation shall be required for Import of bonafide technical and trade samples of items restricted in ITC (HS)
except vegetable seeds bees and new drugs Samples of tea not exceeding INR 2000 (CIF) in one consignment shall be allowed without an Authorisation by any person connected with Tea industry
bull (b) Duty free import of samples upto INR 300000 for all exporters shall be allowed as per terms and conditions of Customs Notification
bull Re ndash import of goods repaired abroad ndash Capital goods equipment components parts and accessories whether imported or indigenous except those 42
restricted under ITC (HS) may be sent abroad for repairs testing quality improvement or upgradation or standardization of technology and re-imported without an Authorisation
bull Import of goods used in projects abroad ndash Project contractors after completion of projects abroad may import without an Authorisation goods including capital
goods used in the project provided they have been used for at least one year bull Import Policy for Second Hand Goods
Category Conditions
i Personal computers laptops including refurbished re-conditioned spares
ii Photocopier machines Digital multifunction Print amp Copying Machines
iii Air conditioners
iv Diesel generating sets
Restricted ( Importable against authorization)
Refurbished re-conditioned spares of Capital Goods Free (Subject to production of Chartered Engineer
certificate to the effect that such spares have at
least 80 residual life of original spare)
All other second hand capital goods other than (a) amp (b) above Free
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of restricted goods An application for grant of an Authorisation for import or export of items mentioned as lsquoRestrictedrsquo in ITC (HS) may be made to RA with a copy to DGFT Hqrs in ANF 2M along with documents prescribed therein Original application along with Treasury Receipt (TR) Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA
Restricted item Authorisation may be granted by DGFT or any other RA authorised by him in this behalf
Import of Restricted Items Required by Hotels Restaurants Travel Agents Tour Operators and other Specified Categories bull Hotels including tourist hotels recognised by Director General of Tourism Government of India or a State Government shall
be entitled to import Authorisation upto a value of 25 of foreign exchange earned by them from foreign tourists during preceding licensing year for import of essential goods related to hotel and tourism industry
bull Travel agents tour operators restaurants and tourist transport operators and other units for tourism like adventure wildlife and convention units recognized by Director General of Tourism Government of India shall be entitled to import authorisation up to a value of 10 of foreign exchange earned by them during preceding licensing year for import of essential goods which are restricted for imports related to travel and tourism industry including office and other equipmentrequired for their own professional use
bull Such imported goods may be transferred after 2 years with permission of DGFT No permission for transfer will be required in case the imported goods are re-exported However re-export shall be subject to all conditionality or requirement of licence or permission as may be required under Schedule II of ITC (HS)
bull An application for grant of an Authorisation to be made in ANF 2 M to DGFT through Director of Tourism Government of India who will forward application to RA concerned along with their recommendations
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of Restricted items for RampD by units of Government
All restricted items and items permitted to be imported by STEs except live animals required for RampD purpose may be imported without an Authorisation by Government recognized Research and Development units
Import for export a) Goods imported in accordance with FTP may be exported in same or substantially the same form without an
Authorisation provided that item to be imported or exported is not restricted for import or export in ITC (HS)
bull (b) Goods including capital goods (both new and second hand) may be imported for export provided
ndash Importer clears goods under Customs Bond
ndash Goods are freely exportable ie are not ldquorestrictedrdquo ldquoprohibitedrdquo subject to ldquoexclusive trading through State
Trading Enterprisesrdquo or any conditionality requirement as may be required under Schedule 2 ndash Export Policy of the
ITC (HS)
ndash Export is against freely convertible currency
bull (c) Goods in (b) above will include lsquorestrictedrsquo goods for import (except lsquoprohibitedrsquo items)
bull Export of repaired goods ldquoGoods or parts thereof except restricted under ITC (HS) on being exported and found defective
damaged or otherwise unfit for use may be imported for repair and subsequent re-export Such goods shall be allowed
clearance without an Authorisation and in accordance with customs notification unless imported exclusively for undertaking
root cause analysis testing and evaluation purpose
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Duties and GST- Applicability to International Trade
GST- Imports Import of goods into India is treated as interstate supply Therefore IGST is levied on import of goodsAfter introduction of GST CVD and SAD have been replaced with Integrated Goods and Service Tax IGSTIGST and Basic Customs Duty are the main components in determining the total import duty payable to customs at the time of Import of Goods into IndiaIn imports IGST is computed on transaction value of imported goods plus duties and taxes etc charged under any statute other than the GST Law
GST- ExportsExports are treated as zero rated supplies No tax will be payable on exports of goods or services however credit of input taxcredit will be available and same will be available as refund to the exporters
Duties Applicable to ImportsBasic Customs DutyAdditional Duty of customsAntidumping DutyTariff DutySafeguard DutyIGST Levy
These duties are not applicable to all imports
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Legislative amp governance framework Schemes MEIS amp SEIS
a) MEISb) SEIS
Duty exemption Schemesa) Advance Authorization Annual Advance Authorizationb) Duty Free Import Authorization
Raw materials amp inputs
Allows duty free import of raw materials for export production
Export Promotion Capital Goods Scheme (EPCG Scheme)Capital Goods amp
Machinery
Allows duty free import of machinery amp equipment for export production amp services
Finished GoodsDuty Credit scrips are provided against exports that can be used to pay duties taxes
SEZs EOUs FTWZsInternational
Markets
TED exemptions refund for DTAs
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of specific categories of goods bull Import of samples bull (a) No Authorisation shall be required for Import of bonafide technical and trade samples of items restricted in ITC (HS)
except vegetable seeds bees and new drugs Samples of tea not exceeding INR 2000 (CIF) in one consignment shall be allowed without an Authorisation by any person connected with Tea industry
bull (b) Duty free import of samples upto INR 300000 for all exporters shall be allowed as per terms and conditions of Customs Notification
bull Re ndash import of goods repaired abroad ndash Capital goods equipment components parts and accessories whether imported or indigenous except those 42
restricted under ITC (HS) may be sent abroad for repairs testing quality improvement or upgradation or standardization of technology and re-imported without an Authorisation
bull Import of goods used in projects abroad ndash Project contractors after completion of projects abroad may import without an Authorisation goods including capital
goods used in the project provided they have been used for at least one year bull Import Policy for Second Hand Goods
Category Conditions
i Personal computers laptops including refurbished re-conditioned spares
ii Photocopier machines Digital multifunction Print amp Copying Machines
iii Air conditioners
iv Diesel generating sets
Restricted ( Importable against authorization)
Refurbished re-conditioned spares of Capital Goods Free (Subject to production of Chartered Engineer
certificate to the effect that such spares have at
least 80 residual life of original spare)
All other second hand capital goods other than (a) amp (b) above Free
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of restricted goods An application for grant of an Authorisation for import or export of items mentioned as lsquoRestrictedrsquo in ITC (HS) may be made to RA with a copy to DGFT Hqrs in ANF 2M along with documents prescribed therein Original application along with Treasury Receipt (TR) Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA
Restricted item Authorisation may be granted by DGFT or any other RA authorised by him in this behalf
Import of Restricted Items Required by Hotels Restaurants Travel Agents Tour Operators and other Specified Categories bull Hotels including tourist hotels recognised by Director General of Tourism Government of India or a State Government shall
be entitled to import Authorisation upto a value of 25 of foreign exchange earned by them from foreign tourists during preceding licensing year for import of essential goods related to hotel and tourism industry
bull Travel agents tour operators restaurants and tourist transport operators and other units for tourism like adventure wildlife and convention units recognized by Director General of Tourism Government of India shall be entitled to import authorisation up to a value of 10 of foreign exchange earned by them during preceding licensing year for import of essential goods which are restricted for imports related to travel and tourism industry including office and other equipmentrequired for their own professional use
bull Such imported goods may be transferred after 2 years with permission of DGFT No permission for transfer will be required in case the imported goods are re-exported However re-export shall be subject to all conditionality or requirement of licence or permission as may be required under Schedule II of ITC (HS)
bull An application for grant of an Authorisation to be made in ANF 2 M to DGFT through Director of Tourism Government of India who will forward application to RA concerned along with their recommendations
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of Restricted items for RampD by units of Government
All restricted items and items permitted to be imported by STEs except live animals required for RampD purpose may be imported without an Authorisation by Government recognized Research and Development units
Import for export a) Goods imported in accordance with FTP may be exported in same or substantially the same form without an
Authorisation provided that item to be imported or exported is not restricted for import or export in ITC (HS)
bull (b) Goods including capital goods (both new and second hand) may be imported for export provided
ndash Importer clears goods under Customs Bond
ndash Goods are freely exportable ie are not ldquorestrictedrdquo ldquoprohibitedrdquo subject to ldquoexclusive trading through State
Trading Enterprisesrdquo or any conditionality requirement as may be required under Schedule 2 ndash Export Policy of the
ITC (HS)
ndash Export is against freely convertible currency
bull (c) Goods in (b) above will include lsquorestrictedrsquo goods for import (except lsquoprohibitedrsquo items)
bull Export of repaired goods ldquoGoods or parts thereof except restricted under ITC (HS) on being exported and found defective
damaged or otherwise unfit for use may be imported for repair and subsequent re-export Such goods shall be allowed
clearance without an Authorisation and in accordance with customs notification unless imported exclusively for undertaking
root cause analysis testing and evaluation purpose
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Duties and GST- Applicability to International Trade
GST- Imports Import of goods into India is treated as interstate supply Therefore IGST is levied on import of goodsAfter introduction of GST CVD and SAD have been replaced with Integrated Goods and Service Tax IGSTIGST and Basic Customs Duty are the main components in determining the total import duty payable to customs at the time of Import of Goods into IndiaIn imports IGST is computed on transaction value of imported goods plus duties and taxes etc charged under any statute other than the GST Law
GST- ExportsExports are treated as zero rated supplies No tax will be payable on exports of goods or services however credit of input taxcredit will be available and same will be available as refund to the exporters
Duties Applicable to ImportsBasic Customs DutyAdditional Duty of customsAntidumping DutyTariff DutySafeguard DutyIGST Levy
These duties are not applicable to all imports
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Legislative amp governance framework Schemes MEIS amp SEIS
a) MEISb) SEIS
Duty exemption Schemesa) Advance Authorization Annual Advance Authorizationb) Duty Free Import Authorization
Raw materials amp inputs
Allows duty free import of raw materials for export production
Export Promotion Capital Goods Scheme (EPCG Scheme)Capital Goods amp
Machinery
Allows duty free import of machinery amp equipment for export production amp services
Finished GoodsDuty Credit scrips are provided against exports that can be used to pay duties taxes
SEZs EOUs FTWZsInternational
Markets
TED exemptions refund for DTAs
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of restricted goods An application for grant of an Authorisation for import or export of items mentioned as lsquoRestrictedrsquo in ITC (HS) may be made to RA with a copy to DGFT Hqrs in ANF 2M along with documents prescribed therein Original application along with Treasury Receipt (TR) Demand Draft shall be submitted to RA concerned and self-attested copy of same shall be submitted to DGFT in duplicate along with proof of submission of application to concerned RA
Restricted item Authorisation may be granted by DGFT or any other RA authorised by him in this behalf
Import of Restricted Items Required by Hotels Restaurants Travel Agents Tour Operators and other Specified Categories bull Hotels including tourist hotels recognised by Director General of Tourism Government of India or a State Government shall
be entitled to import Authorisation upto a value of 25 of foreign exchange earned by them from foreign tourists during preceding licensing year for import of essential goods related to hotel and tourism industry
bull Travel agents tour operators restaurants and tourist transport operators and other units for tourism like adventure wildlife and convention units recognized by Director General of Tourism Government of India shall be entitled to import authorisation up to a value of 10 of foreign exchange earned by them during preceding licensing year for import of essential goods which are restricted for imports related to travel and tourism industry including office and other equipmentrequired for their own professional use
bull Such imported goods may be transferred after 2 years with permission of DGFT No permission for transfer will be required in case the imported goods are re-exported However re-export shall be subject to all conditionality or requirement of licence or permission as may be required under Schedule II of ITC (HS)
bull An application for grant of an Authorisation to be made in ANF 2 M to DGFT through Director of Tourism Government of India who will forward application to RA concerned along with their recommendations
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of Restricted items for RampD by units of Government
All restricted items and items permitted to be imported by STEs except live animals required for RampD purpose may be imported without an Authorisation by Government recognized Research and Development units
Import for export a) Goods imported in accordance with FTP may be exported in same or substantially the same form without an
Authorisation provided that item to be imported or exported is not restricted for import or export in ITC (HS)
bull (b) Goods including capital goods (both new and second hand) may be imported for export provided
ndash Importer clears goods under Customs Bond
ndash Goods are freely exportable ie are not ldquorestrictedrdquo ldquoprohibitedrdquo subject to ldquoexclusive trading through State
Trading Enterprisesrdquo or any conditionality requirement as may be required under Schedule 2 ndash Export Policy of the
ITC (HS)
ndash Export is against freely convertible currency
bull (c) Goods in (b) above will include lsquorestrictedrsquo goods for import (except lsquoprohibitedrsquo items)
bull Export of repaired goods ldquoGoods or parts thereof except restricted under ITC (HS) on being exported and found defective
damaged or otherwise unfit for use may be imported for repair and subsequent re-export Such goods shall be allowed
clearance without an Authorisation and in accordance with customs notification unless imported exclusively for undertaking
root cause analysis testing and evaluation purpose
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Duties and GST- Applicability to International Trade
GST- Imports Import of goods into India is treated as interstate supply Therefore IGST is levied on import of goodsAfter introduction of GST CVD and SAD have been replaced with Integrated Goods and Service Tax IGSTIGST and Basic Customs Duty are the main components in determining the total import duty payable to customs at the time of Import of Goods into IndiaIn imports IGST is computed on transaction value of imported goods plus duties and taxes etc charged under any statute other than the GST Law
GST- ExportsExports are treated as zero rated supplies No tax will be payable on exports of goods or services however credit of input taxcredit will be available and same will be available as refund to the exporters
Duties Applicable to ImportsBasic Customs DutyAdditional Duty of customsAntidumping DutyTariff DutySafeguard DutyIGST Levy
These duties are not applicable to all imports
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Legislative amp governance framework Schemes MEIS amp SEIS
a) MEISb) SEIS
Duty exemption Schemesa) Advance Authorization Annual Advance Authorizationb) Duty Free Import Authorization
Raw materials amp inputs
Allows duty free import of raw materials for export production
Export Promotion Capital Goods Scheme (EPCG Scheme)Capital Goods amp
Machinery
Allows duty free import of machinery amp equipment for export production amp services
Finished GoodsDuty Credit scrips are provided against exports that can be used to pay duties taxes
SEZs EOUs FTWZsInternational
Markets
TED exemptions refund for DTAs
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Excerpts from FTP 2015-20Special cases Exports amp imports
Source Updated FTP 2015-20
Import of Restricted items for RampD by units of Government
All restricted items and items permitted to be imported by STEs except live animals required for RampD purpose may be imported without an Authorisation by Government recognized Research and Development units
Import for export a) Goods imported in accordance with FTP may be exported in same or substantially the same form without an
Authorisation provided that item to be imported or exported is not restricted for import or export in ITC (HS)
bull (b) Goods including capital goods (both new and second hand) may be imported for export provided
ndash Importer clears goods under Customs Bond
ndash Goods are freely exportable ie are not ldquorestrictedrdquo ldquoprohibitedrdquo subject to ldquoexclusive trading through State
Trading Enterprisesrdquo or any conditionality requirement as may be required under Schedule 2 ndash Export Policy of the
ITC (HS)
ndash Export is against freely convertible currency
bull (c) Goods in (b) above will include lsquorestrictedrsquo goods for import (except lsquoprohibitedrsquo items)
bull Export of repaired goods ldquoGoods or parts thereof except restricted under ITC (HS) on being exported and found defective
damaged or otherwise unfit for use may be imported for repair and subsequent re-export Such goods shall be allowed
clearance without an Authorisation and in accordance with customs notification unless imported exclusively for undertaking
root cause analysis testing and evaluation purpose
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Duties and GST- Applicability to International Trade
GST- Imports Import of goods into India is treated as interstate supply Therefore IGST is levied on import of goodsAfter introduction of GST CVD and SAD have been replaced with Integrated Goods and Service Tax IGSTIGST and Basic Customs Duty are the main components in determining the total import duty payable to customs at the time of Import of Goods into IndiaIn imports IGST is computed on transaction value of imported goods plus duties and taxes etc charged under any statute other than the GST Law
GST- ExportsExports are treated as zero rated supplies No tax will be payable on exports of goods or services however credit of input taxcredit will be available and same will be available as refund to the exporters
Duties Applicable to ImportsBasic Customs DutyAdditional Duty of customsAntidumping DutyTariff DutySafeguard DutyIGST Levy
These duties are not applicable to all imports
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Legislative amp governance framework Schemes MEIS amp SEIS
a) MEISb) SEIS
Duty exemption Schemesa) Advance Authorization Annual Advance Authorizationb) Duty Free Import Authorization
Raw materials amp inputs
Allows duty free import of raw materials for export production
Export Promotion Capital Goods Scheme (EPCG Scheme)Capital Goods amp
Machinery
Allows duty free import of machinery amp equipment for export production amp services
Finished GoodsDuty Credit scrips are provided against exports that can be used to pay duties taxes
SEZs EOUs FTWZsInternational
Markets
TED exemptions refund for DTAs
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Duties and GST- Applicability to International Trade
GST- Imports Import of goods into India is treated as interstate supply Therefore IGST is levied on import of goodsAfter introduction of GST CVD and SAD have been replaced with Integrated Goods and Service Tax IGSTIGST and Basic Customs Duty are the main components in determining the total import duty payable to customs at the time of Import of Goods into IndiaIn imports IGST is computed on transaction value of imported goods plus duties and taxes etc charged under any statute other than the GST Law
GST- ExportsExports are treated as zero rated supplies No tax will be payable on exports of goods or services however credit of input taxcredit will be available and same will be available as refund to the exporters
Duties Applicable to ImportsBasic Customs DutyAdditional Duty of customsAntidumping DutyTariff DutySafeguard DutyIGST Levy
These duties are not applicable to all imports
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Legislative amp governance framework Schemes MEIS amp SEIS
a) MEISb) SEIS
Duty exemption Schemesa) Advance Authorization Annual Advance Authorizationb) Duty Free Import Authorization
Raw materials amp inputs
Allows duty free import of raw materials for export production
Export Promotion Capital Goods Scheme (EPCG Scheme)Capital Goods amp
Machinery
Allows duty free import of machinery amp equipment for export production amp services
Finished GoodsDuty Credit scrips are provided against exports that can be used to pay duties taxes
SEZs EOUs FTWZsInternational
Markets
TED exemptions refund for DTAs
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Duties and GST- Applicability to International Trade
GST- Imports Import of goods into India is treated as interstate supply Therefore IGST is levied on import of goodsAfter introduction of GST CVD and SAD have been replaced with Integrated Goods and Service Tax IGSTIGST and Basic Customs Duty are the main components in determining the total import duty payable to customs at the time of Import of Goods into IndiaIn imports IGST is computed on transaction value of imported goods plus duties and taxes etc charged under any statute other than the GST Law
GST- ExportsExports are treated as zero rated supplies No tax will be payable on exports of goods or services however credit of input taxcredit will be available and same will be available as refund to the exporters
Duties Applicable to ImportsBasic Customs DutyAdditional Duty of customsAntidumping DutyTariff DutySafeguard DutyIGST Levy
These duties are not applicable to all imports
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Legislative amp governance framework Schemes MEIS amp SEIS
a) MEISb) SEIS
Duty exemption Schemesa) Advance Authorization Annual Advance Authorizationb) Duty Free Import Authorization
Raw materials amp inputs
Allows duty free import of raw materials for export production
Export Promotion Capital Goods Scheme (EPCG Scheme)Capital Goods amp
Machinery
Allows duty free import of machinery amp equipment for export production amp services
Finished GoodsDuty Credit scrips are provided against exports that can be used to pay duties taxes
SEZs EOUs FTWZsInternational
Markets
TED exemptions refund for DTAs
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Legislative amp governance framework Schemes MEIS amp SEIS
a) MEISb) SEIS
Duty exemption Schemesa) Advance Authorization Annual Advance Authorizationb) Duty Free Import Authorization
Raw materials amp inputs
Allows duty free import of raw materials for export production
Export Promotion Capital Goods Scheme (EPCG Scheme)Capital Goods amp
Machinery
Allows duty free import of machinery amp equipment for export production amp services
Finished GoodsDuty Credit scrips are provided against exports that can be used to pay duties taxes
SEZs EOUs FTWZsInternational
Markets
TED exemptions refund for DTAs
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Legislative amp governance framework Schemes MEIS amp SEIS
a) MEISb) SEIS
Duty exemption Schemesa) Advance Authorization Annual Advance Authorizationb) Duty Free Import Authorization
Raw materials amp inputs
Allows duty free import of raw materials for export production
Export Promotion Capital Goods Scheme (EPCG Scheme)Capital Goods amp
Machinery
Allows duty free import of machinery amp equipment for export production amp services
Finished GoodsDuty Credit scrips are provided against exports that can be used to pay duties taxes
SEZs EOUs FTWZsInternational
Markets
TED exemptions refund for DTAs
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Legislative amp governance framework Schemes Merchandise Export Import Scheme
Introduced to reduce costs to promote manufacturing for export of goods
The scrips can be used for payment of Customs duties for import of inputs or goods Excise duties on domestic procurement of inputs or goods including capital goods payment of custom duties and fee as per paragraph 318 of new FTP
Link httpdgftgovinsitesdefaultfilesft17-051217pdf
These Scrips canrsquot be used for payment of any type of GST They are freely transferrable used for import of those listed in appendix 3A or for domestic procurement (without exception for appendix 3A items) or for payment of service tax on procurement of services
Can be claimed by
The company Firm which has realized foreign exchange
Supporting manufacturer (subject to disclaimer from the companyfirm who has realized foreign exchange)
While Non-SEZ units should apply to Regional Authority DGFT SEZEOUs should apply to concerned Development Commissioner SEZ to avail these benefits
These incentives are for export of notified goods with ITC(HS) Code
The basis of calculation of the reward would be the lesser of FOB value of exports in free foreign exchange or FOB value of exports as given in Shipping Bills in free foreign exchange
The reward rate mat be 2 3 or 5 depending on the product amp group of country as listed
An application for claiming rewards under MEIS on exports shall be filed online using digital signature on DGFT website with RA concerned in ANF 3A The relevant shipping bills and e BRC shall be linked with the on line application
The scrips cannot be utilized for payment of Integrated Tax and Compensation Cess Similarly scrips cannot be used for payment of CGST SGST or IGST for domestic procurement
httpdgftgovinExim2000PNPN15pn0215pdfhttpdgftgovinexim2000MEISMEIS070317pdfhttpdgftgovinExim2000PNPN17Public20Notice204220Englishpdf
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Legislative amp governance framework Schemes Service Export Import Scheme
Service providers having minimum net free foreign exchange earnings of US$15000 (for Individual Service
Providers and sole proprietorship it is
US$10000 ) in preceding financial year are eligible for Duty Credit Scrip
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
Scrips are freely transferrable and can be used for import of any item except those listed in appendix 3A
of appendices and ANF or for domestic
procurement (without exception for
appendix 3A items) or for payment of service tax on procurement of
services Duty free credit scrips are of 3
or 5
In order to claim reward under the scheme service
provider shall have to have an active
Importer Exporter Code at the time of
rendering such services for which
rewards are claimed
List of items not allowed
httpdgftgovinexim2000APPANFS2015pdf (Appendix 3A)
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
MEIS
List of additional products added in September 2016 can be accessed through httpdgftgovinExim2000PNPN16PN3216_Engpdf
List of ineligible categories include Supplies made from DTA units to SEZ units export of imported goods exports through trans-shipment deemed Exports SEZ EOU EHTP BTP FTWZ products exported through DTA units export products subject to Minimum export price or export duty exports made by units in FTWZ
Steps for online application httpdgftgovinexim2000MEIShelppdf
For MEIS amp SEIS
Applicant shall have option to choose Jurisdictional RA on the basis of Corporate Office Registered Office Head Office Branch Office address endorsed on IEC This option will be exercised at the beginning of financial year
For details on respective Jurisdiction for MEIS and SEIS refer to para 306 of FTP (page no 90)
Duty credit scrip needs to be registered at the port of exports
Duty Credit Scrip issued on or after 01012016 shall bevalid for a period of 24 months from the date of issue Revalidation of DutyCredit Scrip shall not be permitted unless specified in the HBP
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Additional Points
Legislative amp governance framework Schemes MEIS amp SEIS (contd)
For MEIS amp SEIS
ED paid in cash or through debit under Duty Credit scrip shall be adjusted as CENVAT Credit or Duty Drawback as per DoR rules or notifications
BCD paid in cash or through debit under Duty Credit scrip shall be adjusted for Duty Drawback as per notifications by DoR
Transfer of export performance from one IEC holder to another IEC holder shall not be permitted
Can be claimed by supporting manufacturer (along with disclaimed by main company) or by company (which has realized foreign exchange directly from overseas)
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Duty ExemptionRemission scheme These Schemes enable duty free import of inputs for export production including replenishment of input or duty
remission There are two types duty exemption amp duty remission
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty E
xem
pti
on
Sch
emes
A
A
Duty free import (exempted from paymentof Basic Customs Duty IGST is payable) ofinputs including fuel oil catalyst which isphysically incorporated or supports in thefinal export product IGST can claimed as acredit to pay for domestic duties or claimedas a refund in proportion to the exportsmade
contracted duration of project execution or 12 months from thedate of issue of Authorisation whichever is more Revalidation of 6months possible on approval by the RA
Advance Authorisation is issued for inputs in relation to resultantproduct on the basis of(i) Standard Input Output Norms (SION) notified(ii) Self declaration as described in 407 of HBP(iii) Applicant specific prior fixation of norm by the NormsCommittee(iv) On the basis of Self Ratification Scheme of Para 407A of FTP
AA shall be issued forbull Physical export (including export to SEZ)bull Intermediate supplybull Supply of goods to EOU STP EHTP BTP capital goods against
EPCG authorization marine freight containers-manufacturers by100 EOU according to custom rules
bull Supply of lsquostoresrsquo on board of foreign going vessel aircraftsubject to condition that there is specific SION for item supplied
Special case for spices amp pharma products a) Spices Covered under Chapter-9 of ITC (HS) shall bepermitted only for activities like crushing grinding sterilization manufacture of oils or oleoresinsb) Pharmaceutical products manufactured through Non-Infringing (NI) process (as indicated inparagraph 418 of Handbook of Procedures) shall be issued to manufacturer exporter only
bull It can be issued to a manufacturerexporter or merchant exporter tied tosupporting manufacturer
bull Minimum value addition should be 15except in case of gems and jewellery andtea
bull The importer has to fulfil exportobligations within 18 months normallywith certain exceptions of shorter orlonger durations
bull Validity period for import of AA is 12months from the date of issue ofAuthorisation and co-terminus with
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
A
A
Advance Authorisation for annualrequirement shall only be issued for itemsnotified in SION not available in case ofadhoc norms on self-declaration or thosementioned in Appendix 4J of the FTP
Eligibilitybull Exporters with past export performance
(in at least preceding 2 financial years)bull Entitlement in terms of CIF value of
imports shall be up to 300 of the FOBvalue of physical export and or FORvalue of deemed export in precedingfinancial year or Rs 1 crore whichever ishigher
Import of Mandatory Spares Those required to be exported supplied with the resultant product shall be permitted duty free to theextent of 10 of CIF value of Authorisation
Ineligible categories of import on Self Declaration basis Vegetable edible oils cereals spices other than light black pepper and more asdescribed in section 411 of FTP and ITC(HS) book
Actual user condition under AA a) AA and or material imported under AA not transferable even aftercompletion of export obligation Authorisation holder can dispose ofproduct manufactured out of duty free input once export obligation iscompletedb) Waste scrap arising out of manufacturing process as allowed canbe disposed off on payment of applicable duty even before fulfilmentof export obligation
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Legislative amp governance framework Schemes Duty exemption remission schemes (contd)
Du
ty E
xem
pti
on
Sch
emes
D
FIA
Duty Free Import Authorisation Similar toAA but issued on post export basis for goodsincluded in SION
bull Importer exempted only from payment ofBCD while ED is adjusted as CENVAT creditas per DoR
bull Minimum value addition should be 20or as mentioned Not applicable for rawsugar
bull Export shall be completed within 12months from the date of online filing ofapplication and generation of file number
Eligibilitybull Issued on post export basis for products
for which SION have been notifiedbull Merchant Exporter required to mention
name and address of supportingmanufacturer of export product on theexport document viz Shipping Bill Airway Bill Bill of Export ARE-1 ARE-3
bull Application to be filed with concerned RAbefore effecting export under DFIA
bull No Duty Free Import Authorisation shall be issued for an input which is subjected to pre-import condition or where SION prescribe lsquoActual Userrsquo condition or Appendix-4J prescribes pre import condition for such an input
Additional points
a) Separate DFIA shall be issued for each SION and each port
b) Exports under DFIA shall be made from from a single port
c) Regional Authority shall issue transferable DFIA with a validity of 12
months from the date of issue
e) Some sensitive items require exporters to provide declaration wrt
technical characteristics (Section 430 of FTP)
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Legislative amp governance framework Schemes Duty exemption remission schemes (notes)
Du
ty E
xem
pti
on
Sch
em
es
A
A amp
DFI
A
a) No export or import of an item under AADFIA if the item is prohibited unless specialconditions are mentionedb) Items reserved for imports by STEs canrsquotbe imported unless against Advance ReleaseOrder invalidation letter NOCs sale ofgoods from STEs to AA holdersc) Restricted items can be imported underAA DFIA
Goods exported under AA DFIA may be re-imported in same orsubstantially same form subject to such conditions as may be specifiedby DoRAuthorisation holder shall also inform about such re-importation to theRegional Authority which had issued the Authorisation within onemonth from date of re-import
Domestic sourcing of inputsa) Holder of an AA DFIA can procure inputsfrom indigenous supplier STE in lieu ofdirect import against Advance Release Order(ARO) Invalidation Letter etcb) When domestic supplier intends to obtainduty free material for inputs through AA forsupplying resultant product to another AADFIA EPCG Authorisation RA shall issueInvalidation Letterc) AA holder under DTA procure inputs fromSEZ units without ARO or Invalidation Letterd) Validity of ARO Invalidation Letter shallbe co-terminous with validity ofAuthorisation
Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation bull Importers would need to pay IGST and take input tax credit as
applicable under GST rulesbull imports under Advance Authorisation would continue to be
exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Legislative amp governance framework Schemes Duty exemption remission schemes
Du
ty R
emis
sio
n S
chem
es
Duty Drawback (DBK) Scheme administeredby Department of Revenue enables postexport replenishment remission of duty oninputs used in the export product
Duty remission schemes consist of(a) DFRC (Duty Free Replenishment
Certificate) It permits duty freereplenishment of inputs used in theexport product
(b) DEPB (Duty Entitlement PassbookScheme)
Drawback of dutiesbull BCD only if CENVAT was takenbull BCD + ED if CENVAT was not taken like in
case of SSI exempted goodsbull Duty drawback schedule
httpwwwcbecgovinresourceshtdocs-cbeccustomsdbk-schduledbk-sch2016pdf
bull No ITC of IGST CGSTbull No refund of IGST
As of 2017 Changes in drawback ruleshttpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ22-2017cspdf
httpwwwcbecgovinresourceshtdocs-cbeccustomscs-circularscs-circulars-2017circ23-2017cspdf
bull Under the GST regime no exemption from payment of Integrated GST and Compensation Cess would be available for imports under Advance Authorisation
bull Importers would need to pay IGST and take input tax credit as applicable under GST rules
bull imports under Advance Authorisation would continue to be exempted from payment of Basic Customs Duty Additional Customs Duty
bull Applicable GST would need to be paid while making local procurement using an invalidation letter of Advance Authorisation DFIA Recipient of goods can take Input Tax Credit (ITC) of the GST paid on such local procurement This Input Tax Credit can be utilized as per GST rules
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Legislative amp governance framework Schemes Export Promotion Capital Goods Scheme
EPC
G S
chem
e
Makes imports of capital goods cheaper for export promotion Importers would need to pay IGST and take input tax credit
as applicable under GST rules
bull ARO facility shall not be available for sourcing of Capital Goods manufactured indigenously
bull Restricted goods for imports and exports shall be allowed after approval from Exim Facilitation Committee (EFC) at DGFT
Headquarters and Exim Facilitation Committee at DGFT Headquarters respectively
bull Export obligation equivalent to 6 times of duty saved to be fulfilled in 6 years (extendable by 2 years) from date of issue
of Authorization
bull The Authorization is valid for import for 18 months from the date of issue of Authorization RA of DGFT has certain
powers to revalidate
Eligibilitybull Manufacturer exporters with or without supporting manufacturer(s) merchant exporters tied to supporting
manufacturer(s) and service providersbull Name of supporting manufacturer(s) shall be endorsed on the EPCG authorisation before installation of the capital goods
in the factory premises of the supporting manufacturer(s)bull Service provider who is designated certified as a Common Service Provider (CSP) by the DGFT or State Industrial
Infrastructural Corporation in a Town of Export Excellence subject to provisions of FTP HBP
Capital goods include Capital Goods as defined in Chapter 9 of FTP including in Completely Knocked Down Semi Knocked Down condition thereofComputer software systems spares moulds dies jigs fixtures tools amp refractories for initial lining and spare refractories catalysts for initial chargeplus one subsequent charge project Imports notified by Central Board of Excise and Customs (second hand goods and plants and power generatorsets of any kind excluded)
bull The CG imported can be used for domestic production also
bull EPCG holder can procure CG part of CG from DTA
bull The DTA supplier is also eligible for duty exemption drawback as applicable
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Legislative amp governance framework Schemes Deemed exports
01
Applicable for 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
02
Supply of goods against Advance Authorisation Advance Authorisation for annual requirement DFIA
03
Supply of goods to EOU
STP EHTP BTP
04
Supply of capital goods
against EPCG Authorisation
05
Supply of marine freight containers by 100 EOU (Domestic freight containers-manufacturers) provided containers are exported out of India within 6 months or period as permitted by customs
06
Supply installation of goods amp equipment (single responsibility of turnkey contracts) to projects financed by multilateral or bilateral Agencies as notified by Department of Economic Affairs (DEA) MoF
07
Supply of goods to projects financed by multilateral or bilateral Agencies Funds as notified by Department of Economic Affairs
08
Others as mentioned in FTP
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Legislative amp governance framework Schemes Deemed exports
Benefits as per Hand Book of Procedures Aayat Niryat Form-7A and GST
a) AA AA for annual requirement DFIA The duty exemption benefits would be limited to exemption from basic custom duty
only
b) Deemed Export Drawback The drawback would be limited to the refund of basic custom duty only In respect of eligible items
covered under Schedule 4 of Central Excise Act 1944 refund would also be covered under the drawback provided the item is
eligible for such supply
c) Refund of terminal excise duty if exemption is not available
d) Exemption on duties on CG used for manufacturing EPCG scheme
e) The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central
Excise Act 1944 provided the items are eligible under the Advance Authorization
bull Advance Authorization benefits under Duty exemption remission schemes shall be available for supplies under deemed
exports
bull The exemption for items under Central Excise would be available for the items which continue under Schedule 4 of Central Excise
Act 1944 provided the items are eligible under the Advance Authorization
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Legislative amp governance framework Acts
The Foreign Trade (Development amp
Regulation) Amendment Act 2010
bull To provide a framework for development amp regulation of foreign trade by facilitating imports into the country and taking measures to increase exports from India It empowers the government to make provisions through policies to fulfil its objectives
The Marine Product Export Development Authority Act 1972
bull An Act to provide for the establishment of an authority for the development of the marine products industry
Export Quality Control Inspection Act 1963
bull An Act to provide for the sound development of the export trade of India through quality control and inspection and for matters connected therewith
Special Economic Zone 2005
bull An Act to provide for the establishment development and management of SEZs for the promotion of exports through simplification of procedures and single window clearance on matters relating to Central and State governments along with incentives to promote domestic manufacturing
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresMandatory documents to export-import
bull As per DGFTrsquos notification dated June 2015 only three documents are mandatory for export and import The documents
required are as follows
bull For more details on the notification visit the website httpdgftgovinExim2000NOTNOT15note-0815pdf
Man
dat
ory
do
cum
en
ts
The exporters and importers however have the option of filing separate Commercial Invoice and lsquoPacking List also if they so desire
Shipping Ministry has also done away with the requirement of Terminal Handling Receipt and has made the process online
Customs have merged Commercial Invoice with the Packing List and have issued a Circular for accepting Commercial Invoice cum Packing List that incorporates required details of both documents
RBI has done away with Foreign Exchange Control Form (SDF) by incorporating declaration in Shipping Bill (for exports) amp and dispensing with Foreign Exchange Control Form (Form A-1) (for imports)
To improve lsquoEase of Doing Businessrsquo in India the number of mandatory documents for export and import has been reduced from eleven to three documents respectively
S No
EXPORTS IMPORTS
1 Bill of Lading Airway Bill Lorry Receipt RailwayReceiptPostal Receipt
Bill of Lading Airway Bill Lorry Receipt RailwayReceipt Postal Receipt in form CN-22 or CN 23
2 Commercial Invoice cum Packing List Commercial Invoice cum Packing List
3 Shipping BillBill of Export Postal Bill of Export Bill of Entry
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
BCD levied under Section 12 of Customs Act It is levied as a percentage of value as determined under Section 14(1) of the Customs Act called the assessable value It is mostly at 10 except on agri Products 75 on capital goods 5 on projects 2 on minerals etc
Instrument of fair competition which is permitted by WTO to rectify trade distortive effect of dumping It is levied to protect domestic industry from cheap imports of goods
SD is applicable on certain goods at the time of import for specified periods in order to check their excessive imports which may be injurious to the Indian industry
Imposed to protect domestic industry from imports If the Tariff Commission issues a recommendation for Protective Duty the central government may impose this at a rate not exceeding as directed by the Commission The government can specify period up to which it will remain in force and adjust the effective rate
At present it is levied only on hides skins and leather snake skins fur lamb skins certain specified minerals and metals Depending on the economic scenario export duty is levied on the goods to discourage exports
To access link to duty calculator an interactive application designed by the Central Board of Excise amp Customs visit httpswwwicegategovinWebappl
ProcessesProceduresDuties amp levies Different types
Basic Customs Duty (BCD)
Anti Dumping Duty
Safeguard duty (SD)
Protective duty (PD)
Export duty(ED)
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresDuties amp levies Different types
Integrated GST now applicable in case of interstate supply IGST credit can be used to pay CGST SGST
Imports In place of Countervailing Duty (CVD) Special Additional Duty (SAD) to countervail excise and sales tax IGST is applicable on total assessable value
Input Tax Credit applicable on IGST but not on BCD
Total import value with BCD = Assessable value + BCD ( of Assessable value) + Education cess ( of BCD) + Additional duties if applicable (safeguard antidumping duty of BCD)
Total value of imports including all duties = Total import value with BCD + IGST ( of Total import value with BCD) + compensation cess if applicable of (Assessable value + BCD+ education cess)
GST on inputs (domestic or imported) to be paid no exemption
GST paid for inputs can be claimed as refund under Section 96A of CGST rules
Refund = (Zero rated supplies x Net Input Tax Credit) Adjusted Total Turnover
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresSetting up an EXIM unit in India
1
4
3
2
Obtain an Importer Exporter Code by filing an application through Ayaat Niryaat form 2A to the Regional Authority DGFT IEC is a unique 10 digit code ( same as the applicantrsquos PAN number)
5 Cover risks through Export Credit Guarantee Corporation Ltd through an appropriate policy
Open current account with bank authorized in foreign exchange
Incorporation of company Set up a sole proprietary concern partnership firm company
Registration cum membership certificate To avail concessions must obtain RCMC from EPCs FIEO Commodity Boards
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresSetting up an EXIM unit in India
Setting up of a company
GoI has outlined guidelines for registration of a company These can be accessed at the web portal of Ministry of Corporate Affairs (httpwwwmcagovinMinistryV2RegisterNewComphtml) A new company may be registered by filing on line form INC-29 available at httpwwwmcagovinMCA21dcadownloadeformseformTemplatesNCAForm_INC-29zip This is a single application form for integrated approval of registration of name of the company incorporation application for allotment of DIN and application for allotment of DSC This e-form is accompanied by supporting documents including details of Directors amp subscribers MoAand AoA etc
Opening of a bank account
Details of the same are attached in the annexure- 3 as per the type of entity
PAN card and IEC
To apply for a PAN card please visit the website of the Income Tax Department through the following link httpswwwtin-
nsdlcom
IEC httpdgftgovinexim2000iec_anfieconlnapplformhtm
RCMC
Visit the website of Federation of Indian Exports Organisation (FIEO) through the following link
httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ECGC
For details of various schemes available to exporters amp importers visit the website of httpswwwecgcinportal
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Setting up of a company
Steps detailed out in a Annexure Ministry of Corporate Affairs
20-25 days
Opening up of a bank account
Details mentioned in Annexure 3 2 days
PAN Card The applicant completes Form 49A (statutory form for applying for PAN) pays the due fees of INR 93 (plus applicable taxes currently at 1236) either online or otherwise and submits the application form together with proof of identity proof of address and 2 recent photographs to the authorized agentdesignated service centres for verification
Private agencies authorized by UTI or NSDL as outsourced by the Income Tax Department(Federal)
7-10 days
IEC Application can be filed manually and submitting form in the office of Regional Authority (RA) of DGFT Alternatively an application for e-IEC may be filed online in ANF 2A on payment of application fee of INR 500 to be paid online through net banking or creditdebit card Documents details required to be uploaded submitted along with the application form are listed in the Application Form (ANF 2A) Forms neededFresh IECa) Digital Photograph (3x3cms) of the Signatory Applicant b) Copy of PAN cardc) Bank Certificate or cancelled bearing applicant entities nameIEC will be now same as PAN card of the entity httpdgftgovinexim2000TNTN17TN0918pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
Proprietorship bull Digital Photograph (3x3cms) of the Proprietor bull Copy of PAN card of the Proprietor bull Copy of Passport (first amp last page)Voterrsquos I-Card Driving
LicenceUID (Aadhaar card) (any one of these) bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A(I) Cancelled Cheque bearing pre-printed name of applicant and AC No
Partnership firm bull Digital Photograph (3x3cms) of the Managing Partner Copy of PAN
card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhaar Card)
Driving LicencePAN (any one of these) of the Managing Partner signing the application
bull Copy of Partnership Deed bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing pre printed name of the applicant entity and AC No
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
LLP firm Government Undertaking Public Limited Company PrivateLimited Company Section 25 Companybull Digital Photograph (3x3cms) of the Designated PartnerDirector of
the Company signing the applicationbull Copy of PAN card of the applicant entitybull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Managingbull PartnerDirector signing the applicationbull Certificate of incorporation as issued by the RoCbull Sale deed in case business premise is self-owned or Rental Lease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificate as per ANF 2 A(I)Cancelled Cheque bearing pre-printed
Registered Society Trustbull Digital Photograph (3x3cms) of the signatory applicantSecretary or
Chief Executive bull Copy of PAN card of the applicant entity bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar Card)
Driving Licence PAN (any one of these) of the Secretary or Chief Executive Managing Trustee signing the application
bull Sale deed in case business premise is self-owned or RentalLease Agreement in case office is rented leased or latest electricity telephone bill
bull Registration Certificate of the Society Copy of the Trust Deedbull Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing pre-
printed name of the Registered Society or Trust and AC No
httpdgftgovinexim2000iec_anfapp2pdf
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresSetting up an EXIM unit in India
Process Steps and forms needed Whom to contact No of days
HUFbull Digital Photograph (3x3cms) of the Karta bull Copy of PAN card of the Karta bull Copy of Passport (first amp last page)Voterrsquos I-Card UID (Aadhar card)
Driving Licence (any one of these) of the Karta bull Sale deed in case business premise is self-owned or RentalLease
Agreement in case office is rented leased or latest electricity telephone bill
bull Bank Certificatey as per ANF 2A(I) Cancelled Cheque bearing preprinted name of applicant and AC No
RCMCbull An IEC is a mandatory pre-requisite to applying for RCMCbull An RCMC can applied for at the relevant export promotion council or
at FIEO (The Federation of Indian Export Organisations) through httpwwwntradeinFIEONewLoginaspxEPCID=EP012
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresSetting up an EXIM unit in India
IEC Number Exempted Categories
bull IEC is compulsory for import and or exports However the following categories of importers or exporters are exempted from
obtaining IEC
bull Importers covered by clause 3(1) [except sub- clauses (e) and (l)] and exporters covered by clause 3(2) [except sub-clauses (i) and
(k)] of Foreign Trade (Exemption from application of Rules in certain cases) Order 1993
bull Ministries Departments of Central or State Government
bull Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture
bull Persons importingexporting goods fromto Nepal Myanmar (through Indo-Myanmar border areas) and China (through Gunji
Namgaya Shipkila and Nathula ports) provided that the CIF value of single consignment of importexport of goods fromto Nepal
and Myanmar (through Indo-Myanmar border areas) does not exceed Indian INR 25000- and in the case of China (a) for
importexport of goods through Gunji and Namgaya Shipkila CIF value of single consignment does not exceed Indian INR
100000-and (b) for importexport of goods through Nathula CIF value of single consignment does not exceed INR 200000-
(amended vide Public Notice No 72015-20 dated 1st May 2015)
bull Further exemption from obtaining IEC shall not be applicable for export of Special Chemicals Organisms Materials Equipments
and Technologies (SCOMET) as listed in Appendix - 3 Schedule 2 of ITC (HS)
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresApplication process MEIS SEIS
For other than Export of goods through courier or foreign post offices using e-Commerce filed
online using digital signature on DGFT website at
httpdgftgovin with RA concerned in ANF 3A
For exports through EDI ports hard copy of documents need
not be submitted to RA (applications to DGFT EDI
shipping bills e-BRC and RCMC The applicant shall submit the proof of landing along with it
For non EDI ports submit export promotion copy of non EDI
shipping bills Also submit proof of landing as prescribed under
paragraph 303 of HBP Hard copy of applications to DGFT
need not be submitted
Applicant shall file separate application for each port of
export
Processing of Non EDI Shipping bills at RA In cases the shipping bills not
received through the Message Exchange from Customs concerned
RA shall verify the details from original bills before grant of scrip
For EDI Shipping Bill no manual feeding of Shipping bill details shall be allowed to the applicants in the
online system Rewards will be granted by RAs without the need for
cross verifying EDI Shipping Bill details
RA shall process the electronically acknowledged files
and scrip shall be issued after due scrutiny of electronic
documents
For SEIS application filed online for a financial year on annual basis in ANF 3B using digital
signature RA shall process the application received online after
due scrutiny
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresApplication process Duty exemption remission amp EPCG
Application for grant of AA AA for Annual Requirement DFIA filed
online (digitally signed) by IEC holder to the concerned
jurisdictional Regional Authority as per Appendix 1A Applicant could be
either Registered office or Head office or a branch office or a
manufacturing unit of the IEC holder
Applicant shall upload documents as prescribed in ANF 4A if any at the time of online filing of application No physical copy of application is
required to be submitted to Regional Authority
In case an applicant is not able to upload any document as given in
Appendix 4E electronically for fixation of adhoc norms
standardization of norms then only such documents may be submitted in physical form to the concerned
Norms Committee in DGFT headquarters
EPCG An application for grant of an authorisation may be made by Registered Office or Head Office or a Branch Office or Manufacturing Unit of an eligible exporter to RA concerned in ANF 5A along with documents prescribed therein
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
Units undertaking to export their entire production of goods and services (except permissible sales in DTA) may be set up underthe Export Oriented Unit (EOU) Scheme Electronics Hardware Technology Park (EHTP) Scheme Software Technology Park (STP)Scheme or Bio-Technology Park (BTP) Scheme for manufacture of goods including repair re-making reconditioning re-engineering rendering of services development of software agriculture including agro-processing aquaculture animalhusbandry bio-technology floriculture horticulture pisciculture viticulture poultry and sericulture Trading units are not coveredunder these schemes
Exceptions items prohibited in ITC (HS) Special Chemicals Organisms Materials Equipment and Technologies (SCOMET) Procurement and supply of export promotion material like brochure literature pamphlets hoardings catalogues posters etc jewellery
bull EOUs only eligible for MEISbull In GST regime the import of goods covered under GST would be exempted from the whole of the duty of customs specified
under the First Schedule to the Customs Tariff Act 1975 (BCD) But such goods would attract integrated tax and compensationcess leviable under sub- section (7) and (9) of the said Act The taxes so paid on imports will be neutralized by Input Tax Credit
bull The import of goods covered under Fourth Schedule of the Central Excise Act would be exempted from the whole of the duty ofcustoms specified under the First Schedule to the Customs Tariff Act 1975 (BCD) and also from the additional duty leviableunder sub- sections (1)(3) and (5) of section (3) of the said Act (CVD amp SAD)
bull For domestic procurement a) of goods covered under GST payment of CGST SGST UTGST IGST will be neutralized by ITC b)of goods covered under Fourth Schedule the EOU will continue to get ab-initio exemptions from central excise duty
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdfhttpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
3 copies of application as in ANF 6A along with a crossed DD of INR 5000- in favour of the Pay ampAccounts Officer Ministry of Commerce amp Industry Department of Commerce payable at the Central Bank of India Udyog Bhavan New Delhi may be submitted to Development Commissioner (DC)
Applications approved or rejected by Units Approval Committee within 15 days as per criteria in Appendix 6A and sector specific conditions relating to approval as in Appendix 6B In other cases approval may be granted by DC after clearance by Board of Approval
Proposals for setting up EOUrequiring industrial licencemay be granted approval byDC after clearance ofproposal by BOA (as perAppendix 6 C of Appendicesamp ANFs) and Department ofIndustrial Policy andPromotion within 45 days onmerits
Link to forms andappendiceshttpdgftgovinexim2000APPANFS2015pdf
Application process for EOU EHTP STP BTP
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP
bull An EOU EHTP STP BTP unit may import and or procure from DTA or bonded warehouses in DTA international exhibition
held in India without payment of duty all types of goods including capital goods required for its activities provided they are not
prohibited items of import in the ITC (HS)
bull State Trading regime shall not apply to EOU manufacturing units except for Chrome Ore Chrome concentrate
bull EOU EHTP STP BTP units may import procure from DTA without payment of duty certain specified goods for creating a
central facility Software EOU DTA units may use such facility for export of software
bull BOA may allow on a case to case basis requests of EOU EHTP STP BTP units in sectors other than Gems amp Jewellery for
consolidation of goods related to manufactured articles and export thereof along with manufactured article Such goods may be
allowed to be imported procured from DTA by EOU without payment of duty to the extent of 5 FOB value of such
manufactured articles exported by the unit in preceding financial year
Leasing of capital goodsbull An EOU EHTP STP BTP unit may on the basis of a firm contract between parties source capital goods from a domestic
foreign leasing company without payment of customs duty In such a case EOU EHTP STP BTP unit and domestic foreignleasing company shall jointly file documents to enable import procurement of capital goods without payment of duty
Only projects having a minimum investment of INR 1 Crore in plant amp machinery shall be considered for establishment as EOUs
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
Entire production of EOU EHTP STP BTP units shall be exported subject to following
a) Other than gems and jewellery units may sell goods and services including software units upto 50 of FOB value of exports
subject to fulfilment of positive NFE on payment of concessional duties
b) units which are manufacturing and exporting more than one product can sell any of these products into DTA upto 90 of FOB
value of export of the specific products subject to the condition that total DTA sale does not exceed the overall entitlement of
50 of FOB value of exports for the unit
c) No DTA sale at concessional duty shall be permissible in respect of motor cars alcoholic liquors books tea (except instant tea)
pepper amp pepper products marble and such other items as may be notified from time to time
d) Such DTA sale shall also not be permissible to units engaged in activities of packaging labelling segregation refrigeration
compacting micronisation pulverization granulation conversion of monohydrate form of chemical to anhydrous form or
vice-versa Sale to DTA would also be subject to mandatory requirement of registration of pharmaceutical products (including
bulk drugs)
e) Scrap waste remnants arising out of production process or in connection therewith may be sold in DTA as per SION notified
under Duty Exemption Scheme on payment of concessional duties as applicable within overall ceiling of 50 of FOB value of
exports
f) EOU EHTP STP BTP units may sell finished products except pepper and pepper products and marble which are freely
importable under FTP in DTA under intimation to DC against payment of full duties provided they have achieved positive NFE
g) In case of units manufacturing electronics hardware and software NFE and DTA sale entitlement shall be reckoned separately
for hardware and software
h) In case of new EOUs advance DTA sale will be allowed not exceeding 50 of its estimated exports for first year
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdfhttpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
EOU EHTP STP BTP ndash DTA sale
EOUs EHTPs STPs BTPs ndash DTA sale
An EOU EHTP STP BTP unit may export goods manufactured software developed by it through another exporter or any other
EOU EHTP STP SEZ unit subject to conditions mentioned in the HBP (619)
Supplies from DTA to EOU EHTP STP BTP units will be regarded as ldquodeemed exportsrdquo and DTA supplier shall be eligible for
relevant entitlements besides discharge of export obligation if any on the supplier
For claiming deemed export duty drawback they shall get brand rates fixed by DC wherever All Industry Rates of Drawback are not
available
Exemptions to EOU EHTP STP BTP units
a) Exemption from industrial licensing for manufacture of items reserved for SSI sector
b) Export proceeds will be realized within nine months
c) Units will be allowed to retain 100 of its export earnings in the EEFC account
d) Unit will not be required to furnish bank guarantee at the time of import or going for job work in DTA subject to conditions
e) 100 FDI permitted as for SEZ units
DTA clearances of finished goods covered under GSTbull EOUs would be required to pay only CGST amp SGST or lGST as the case may be besides paying back of whole of the duty of customs
specified under the First Schedule to the Customs Tariff Act 1975 (BCD) exemptions if availed on inputs used in manufacture of such finished goods The DTA clearances of finished goods covered under Fourth Schedule of the Central Excise Act 1944 the EOUs would be required to pay central excise duty equal to the aggregate of duties of customs in view of proviso to Section 3(1) of the Central Excise Act the effective rate of such duties
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresApplication process Setting up export units in EOU EHTP STPBTP
Imports to EOUs EHTPs STPs BTPsbull EOUsEHTPsSTPs will be allowed to import goods without payment of basic customs duty (BCD) as well additional duties leviable
under Section 3 (1) and 3(5) of the Customs Tariff Act bull GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs which can be taken as input
tax credit (ITC) This ITC can be utilized for payment of GST taxes payable on the goods cleared in the DTA or refund of unutilized ITC can be claimed under Section 54(3) of CGST Act
bull Clearance of goods in DTA will attract GST besides payment of amount equal to BCD exemption availed on inputs used in such finished goods DTA clearances of goods which are not under GST would attract Central Excise duties as before
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
It is a geographical region designed to export goods exempt from certain laws regarding taxes quotas FDI-bans and labour laws in order to price them competitively globally SEZs also include free trade zones export processing zones free zones industrial parks or industrial estates free economic zones and urban enterprise zones
(a) Duty free import domestic procurement of goods (only BCD) for development operation and maintenance of SEZ units
(b) Imports procurements by SEZ Authorised operations shall be exempted from payment of IGST
For developers (a) Exemption from minimum alternate tax under section
115JB of the Income Tax Act(b) ECB upto US $ 500 million in a year without any maturity
restriction through recognized banking channels (c) Single window clearance for Central and State level
approvals (d) Exemption from State tax and other levies as extended by
the respective states(e) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(f) To SEZ units no profit linked deduction for profit derived
from export to units commencing manufacture providing services on or after 1 April 2020 units should be operational from 31 March 2020 to avail tax benefits under Section 10 AA of Income Tax Act 1961
SEZFTWZ shall be a special category of SEZ with a focus on trading and warehousing Its objective is to create trade-related infrastructure to facilitate the import and export of goods and services with freedom to carry out trade transactions in free currency 100 Foreign Direct Investment is permitted in development and establishment of FTWZ These Zones would be established in areas proximate to seaports airports or dry ports so as to offer easy access by rail and road
In addition to the incentives available to SEZs following are applicable to FTWZ(a) No deduction under Section 80- IAB if activity commences
on or after 1 April 2017(b) Free foreign exchange currency transactions would be
permitted
Source httpsezindianicindevelop-sezasphttpwwwftwzcom
Both SEZs FTWZs are principally governed by the SEZ Act 2005 and SEZ Rules 2006
FTWZ
httpwwwcbecgovinresourceshtdocs-cbecdeptt_offcrgst-advisory-importers-exporters-final-version-finalpdf
httpdgftgovinexim2000TNTN17Trade20Notice20No1120dt30062017pdf
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresApplication process Setting up export units in SEZ FTWZ
An SEZ could be a multi sector SEZ sector Specific SEZ an FTWZ or ITITEShandicrafts SEZ bio-technology
non-conventional energygems and jewellery Sector
To set up a unit in an SEZFTWZ the manufacturer has to submit a single application in a prescribed Form (Form F)
(httpwwwsursezcomform_fhtml) in five copies to the Development Commissioner of the SEZ in which a unit is proposed
to be set up with a copy to the Developer of the SEZ Following detailsdocuments are required
A crossed demand
draft for
Rs10000- drawn
in favour of Pay amp
Accounts Officer
Ministry of
Commerce amp
Industry Mumbai
A copy of
certificate of
incorporation
along with Article
of Association
Memorandum in
case of companies
and partnership
deed in case of
partnership firm
Residence proof in
respect of
proprietorpartner
sdirectors as the
case may be
Income Tax returns
of the proprietor
or partners of last
three years In case
of company
audited balance
sheet for last three
years
A brief project
report giving
experience of the
promoters
marketing tie-ups
sources of
financing etc
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresIncoterms Rules for any mode modes of transport
Source httpswwwexportgovarticleid=Incoterms-Overview
Incoterms are a set of rules which define the responsibilities of sellers and buyers for the delivery of goods under sales contractsShippers worldwide use these standard trade definitions to spell out whorsquos responsible for the shipping insurance and tariffs onan item Incoterms are commonly used in international contracts and are protected by the International Chamber of Commercecopyright
SNo Rule Description
1 EXW Ex Works The seller delivers when it places the goods at the disposal of the buyer at the sellerrsquos premises or at another named place (ie works factory warehouse etc)
2 FCA Free Carrier The seller delivers the goods to the carrier or another person nominated by the buyer at the sellerrsquos premises or another named place
3 CPT Carriage Paid To The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination
4 CIP Carriage and Insurance Paid To
The seller delivers the goods to the carrier or another person nominated by the seller at an agreed place (if any such place is agreed between parties) and that the seller must contract for and pay the costs of carriage necessary to bring the goods to the named place of destination The seller also contracts for an insurance cover
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresIncoterms Rules for any mode modes of transport
SNo Rule Description
5 DAT Delivered at Terminal The seller delivers when the goods once unloaded from the arriving means of transport are placed at the disposal of the buyer at a named terminal at the named port or place of destination The seller bears all risks involved in bringing the goods to and unloading them at the terminal at the named port or place of destination
6 DAP Delivered at Place The seller delivers when the goods are placed at the disposal of the buyer on the arriving means of transport ready for unloading at the named place of destination The seller bears all risks involved in bringing the goods to the named place
7 DDP Delivered Duty Paid The seller delivers the goods when the goods are placed at the disposal of the buyer cleared for import on the arriving means of transport ready for unloading at the named place of destination The seller bears all the costs and risks involved in bringing the goods to the place of destination and has an obligation to clear the goods not only for export but also for import to pay any duty for both export and import and to carry out all customs formalities
Source httpswwwexportgovarticleid=Incoterms-Overview
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
ProcessesProceduresIncoterms Rules for sea and inland waterway transport
SNo Rule Description
1 FAS Free Alongside Ship The seller delivers when the goods are placed alongside the vessel (eg on a quay or a barge) nominated by the buyer at the named port of shipment The risk of loss of or damage to the goods passes when the goods are alongside the ship and the buyer bears all costs from that moment onwards
2 FOB Free on Board The seller delivers the goods on board the vessel nominated by the buyer at the named port of shipment or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel and the buyer bears all costs from that moment onwards
3 CFR Cost and Freight The seller delivers the goods on board the vessel or procures the goods already so delivered The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination
4 CIF Cost Insurance and Freight The seller delivers the goods on board the vessel The risk of loss of or damage to the goods passes when the goods are on board the vessel The seller must contract for and pay the costs and freight necessary to bring the goods to the named port of destination The seller also contracts for insurance cover
Source httpswwwexportgovarticleid=Incoterms-Overview
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Exim Trade Facilitation bodiesFinancial infrastructure EXIM Bank
Export-Import Bank of India (Exim Bank) was set up by an Act of the Parliament ldquoThe Export-import Bank of India Act 1981rdquo for providing financial assistance to exporters and importers It is the principal financial institution in the country for financing project exports and exports on deferred credit terms As per RBI the following constitute project exports
bull Supply of goods equipment on deferred payment terms
bull Civil construction contracts
bull Industrial turnkey projects
bull Consultancy services contractsIt has two broad streams of functions the traditional export finance and two financing of export oriented units (export capability creation)Various financial services provided by the bank include
bull Overseas Investment Finance Programme encouraging Indian companies to invest abroad for inter alia setting up manufacturing units and for acquiring overseas companies to get access to the foreign market technology raw material brand IPR etc It provides term loans and guarantees to Indian companies for investment overseas For more details httpswwweximbankindiainoverseas-investment-finance
bull Project Exports extends funded and non-funded facilities for overseas turnkey projects civil construction contracts technical and consultancy service contracts as well as supplies For more details httpswwweximbankindiainproject-exports
bull Line of Credit (LOC) is a financing mechanism through which Exim Bank extends support for export of projects equipment goods and services from India Exim Bank extends LOCs on its own and also at the behest and with the support of Government of India LOC is extended to foreign governments overseas financial institutions banks abroad etc For more details httpwwweximbankindiainlines-of-credit
bull Corporate Banking financing programmes for Export Oriented Units (EOUs) importers and for ( MSMEs grassrootenterprises ) making overseas investments For more details httpwwweximbankindiaincorporate-banking
bull Buyerrsquos Credit allows overseas buyersimporters can avail this facility for import of eligible goods and services from India on deferred payment terms For more details httpwwweximbankindiainbuyers-credit
Source httpwwweximbankindiain
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Exim Trade Facilitation bodiesFinancial infrastructure Private Banks
There are also private banks that offer various schemes to support export and import in India
An indicative list of schemes offered by them is as follows
Name of the scheme Description
Trade Finance Trade finance schemes and trade services offered by the banks trade finance experts to provide
customized solutions to suit to the customers financial supply chain credit backed structures
channel finance vendor financing supplier financing local bill discounting invoice financing
Expo Gold Card The scheme ensures easy availability of export credit on best terms to credit worthy exporters with
good track record
Export Bill Negotiation Receive payment as soon as the goods have been shipped simply on the basis of trade transaction
documents
Export Credit Scheme Pre-shipment credit and post-shipment credit for export sector
Finance for Export Oriented Units Term loans and working capital loans for export industry
Gold Card Scheme for the Exporters Promotion of export by extending various facilities to exporters having good track record on better
terms
Standby Term Loan Scheme for
Apparel Exporters
For addition or replacement of existing machinery up gradation of existing machinery purchase of
software hardware for fashion designing repairs renovation of industrial sheds factory building
traveling abroad for business purposes participation in trade fairs exhibitions abroad or international
fairs in India or any other sales promotional activities replacing tools jigs fixtures etc
Source httpsmallbsidbiinbank-schemesfield_bank_scheme2_tid_2=243ampfield_financial_institution2_tid=Allamp=Apply
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Co
nte
nts
Ecosystem Mapping
Legislative amp Governance Framework Acts amp Schemes
Processes procedures Mandatory documents to export import Duties amp levies Setting up an EXIM unit Application for MEIS SEIS EPCG Duty exemption remission schemes Setting up Export Units EOU EHTP SEZ FTWZ Incoterms
EXIM trade facilitation bodies
Disputes amp grievancesrsquo redressal
Excerpts from FTP 2015-20
1
2
6
7
3
5
Duties and GST- Applicability to International Trade
4
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Disputes amp grievancesTypes of complaints
Types of Complaints
Complaints received from foreign buyers in respect of poor quality of the products supplied by exporters
from India
Complaints of importers against foreign suppliers in respect of quality of the products supplied
Complaints of unethical commercial dealings categorized mainly as non-supply partial supply of goods after confirmation of order supplying goods other than the ones as agreed upon non-payment
non-adherence to delivery schedules etc
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Disputes amp grievancesTypes of complaints
The application for investigation of quality complaints and or other trade disputes maybe be filled and sent to any of the 22 offices of the DGFT in the four zones ( North South East West)
The application is to be submitted in the ANF8 of Appendices amp AayatNiryat Forms httpdgftgovinexim2000APPANFS2015pdf
Complaint has to be duly supported by self-attested photocopies of the relevant documents
Complaint could also be filled online at DGFT website httpwwwdgftgovin
The CQCTD on receipt of a complaint from importer abroad against Indian exporter would call for comments from the firm against whom the complaint has been made
After opportunity of hearing to both sides CQCTD may arrive at a conclusion to resolve the matter and CQCTD RA (registered authorities) will take action as considered appropriate
RA would forward a copy of the complaint received from Indian importer against foreign exporter to the concerned Foreign Trade (FT) Division in the Department of Commerce (DoC)
Complaints received in DGFT office from the Indian importers against foreign exporters forwarded by Nodal officer in the DGFT office to concerned Foreign Trade (FT) Division in the DoC
FT Division in DoC takes up complaint with concerned Embassy High Commission Consulate General in India and concerned Indian Embassy High Commission abroad for effective resolution of the complaint
CQCTD Committee on Quality Complaints amp Trade DisputeRA Regional AuthoritySource Updated FTP 2015-20
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Disputes amp grievancesKey contacts
Source Updated FTP 2015-20
S No Zone Office Contact No E-mail address
1 DGFT (Hqrs) Udyog Bhawan New
Delhi
Toll Free No 1800111550 dgftedinicin
2 Oo Zonal Jt DGFT CLA New Delhi Telephone No 011-23378748 011-
23379111112
Ext 130
helpdesk-clanicin
rkumar68nicin
3 Oo Zonal Jt DGFT Mumbai Telephone No 022-2201771622038094
Extn 105 Direct No 022-22038197
dgft-Mumbainicin
For IEC issues iecmum-
dgftnicin
Before calling or sending Email it is important to register the complaint in the ldquoComplaint Resolution Systemrdquo For details httpdgftgovinExim2000DocCRSHelppdf
In addition to the above contacts you may also reach out to DGFT officers with the contact details by clicking in the following link httpwwwdgftgovinexim2000dgftContactUshtml
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Annexures
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
bull There is a list of 60 products prohibited for import Few of the indicative products listed are
According to schedule 1 of ITC(HS) Classifications of Export amp Import Items mentioned on the DGFT website there are 428 items restricted
with special clauses for exportimport Few of the indicative products listed are
For more details visit the website dgftgovinexim2000dnftpdnlrestrctd20itemsdoc
Fatty livers fresh or chilled
Other meat and edible meat offal fresh chilled or frozen of wild animals
Shark fins
Edible products of animal origin not elsewhere specified or included of
Wild animals
Guts of other animals for natural food casings of wild animals
Guts other than for natural food castings of wild animals
Bladders amp stomachs of Wild animals
Feathers of a kind used for stuffing down of wild birds
Skins and other parts Of wild birds
Bones including horn-cores crushed Of wild animals
Horses
Asses
Horses for Polo
Asses Mules and hinnies livestock
Bulls adult
Cows adult
Buffaloes adult and calves
Pure bred breeding animals
Goats
Turkeys
Annexure 1Prohibitive list for products amp countries
63
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
bull There is a prohibition on
ndash Import and Export of lsquoArms and related materialrsquo from to Iraq
ndash Direct or Indirect Import and Export from to Democratic Peoplersquos Republic of Korea
ndash Import of Charcoal from Somalia
bull The prohibition on import of milk and milk products (including chocolates and chocolate products and candies
confectionary food preparations with milk or milk solids as an ingredient) from China is effective from 2362016 till
2362017 or until further orders
bull The detailed list of the prohibited and restricted products can be accessed from the DGFT website
subject to time-to-time notificationsorders by the Government
Annexure 1Prohibitive list for products amp countries
64
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Annexure 2Glossary
Term Definition Page No
APEDA Act An Act to provide for the establishment of an Authority for the development and promotion of exports of certain agriculture and processed food products and for matters connected therewith
12
Assistance to States for Infrastructure Development of Exports (ASIDE)
Launched in 2002 it is a Centrally Sponsored Plan scheme in which outlay is provided for development of export infrastructure which is distributed among the States on the basis of the Statesrsquo export performance in the previous year
7 amp 9
Bill of Entry An account of goods entered at a customs house of imports and exports detailing the merchant quantity of goods their type and place of origin or destination It is issued by the customs presenting the total assigned value and the corresponding duty charged on the cargo
23 amp 49
Bill of LadingAirway Bill A bill of lading is a legal document between the shipper of goods and the carrier detailing the type quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the goods are delivered at the predetermined destination This document must accompany the shipped goods no matter the form of transportation and must be signed by an authorized representative from the carrier shipper and receiver Similar to Bill of Lading Airway Bill accompanies goods shipped by an international courier to provide detailed information about the shipment and allow it to be tracked
23 amp 49
CENVAT credit A scheme through which manufacturers or the output service providers are allowed a set off of the taxes paid on the inputs or the input services that are used while manufacturing the final products or providing the output service
17 amp 53
Commercial invoice cum packing list
It is used as a customs declaration provided by the person or corporation that is exporting an item across international borders
23
Duty drawback scheme Governed under Section 74 amp 74 of the Custom Act it is a method of refund of custom duties paid on the inputs or raw materials and service tax paid on the input services used in the manufacture of export goods
8 amp 17
Interest Equalization Scheme
Introduced in November 2015 in place of the Interest Subvention Scheme it offers 3 rate of interest equalization applicable to MSMEs and 416 tariff lines for 5 years The scheme will help various identified export sectors to be internationally competitive and achieve higher level of export performance
7
65
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Annexure 2Glossary
Term Definition Page No
ITC(HS) Code Indian Trade Clarification based on Harmonized System of Coding was adopted in India for import-export operations Indian custom uses an eight digit ITC-HS Codes to suit the national trade requirementsITC (HS) codes are better known as Indian Trade Clarification (ITC) and are based on Harmonized System (HS) of Coding It was adopted in India for import-export operations Indian custom uses an eight digit ITC (HS) code to suit the national trade requirements
15 30 41 42
47 48 amp 56
Merchandise Export India Scheme(MEIS) Service Export India Scheme (SEIS)
Introduced in Indian Foreign Trade Policy 2015-20 (FTP 2015-20) is to offset infrastructural inefficiencies and associated costs involved in export of goodsproducts amp services which are producedmanufactured in India Duty Credit Scrips are granted as rewards under MEIS amp SEIS
7 amp 15
Minimum Alternate Tax It is the minimum tax a company in India has to pay whose income tax is less than 185 31
National Perspective Plan (NPP)
Governmentrsquos flagship program to promote port-led development in the country This plan is based on four strategic levers ndash optimizing multi-modal transport to reduce the cost of domestic cargo minimizing the time and cost of export-import cargo logistics lowering costs for bulk industries by locating them closer to the coast and improving export competitiveness by locating discrete manufacturing clusters near ports
8
Shipping BillBill of Export
Document required by customs authority for clearance of goods for shipment 8 15 23 amp 52
Standard Input Output norms
Defines the amount of inputinputs required to manufacture unit of output for export purpose Input output norms are applicable for the products such as electronics engineering chemical food products including fish and marine products handicraft plastic and leather products etc SION is notified by DGFT in the Handbook (Vol2) 2002-07 and is approved by its Boards of Directors An application for modification of existing Standard Input-Output norms may be filed by manufacturer exporter and merchant-exporters
17
66
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Annexure 3 Opening a bank account for an
individual and proprietorship
Acceptable Identity Proof verifying legal
name
bullThe identity and address of an individual must be established by providing any of the following documents
bullPassport
bullPan Card
bullVoter Identity card
bullDriving License
bullIdentity Card
bullLetter from a recognized public authority verifying the identity and residence of the customer to the satisfaction bank
Acceptable Address Proof verifying
address
bullAcceptable address proof needs to be submitted as well with any of the above mentioned documents Following documents can be used as an address proof
bullTelephone Bill
bullBank account statement
bullLetter from any recognized public authority
bullElectricity Bill
bullRation Card
bullLetter from employer
bullA rent agreement indicating the address of the customer duly registered
Opening a bank account for an Proprietorship
bullThe name of business address and activity along with 2 of the following documents are needed
bullRegistration certificate (registered company)
bullSales and income tax returns
bullCSTVAT certificate
bullRegistration document issued by sales taxservice tax authority
bullLicensing document issued in concern to proprietary concern by state governmentcentral government
bullA complete income tax return in mane of sole proprietor
bullUtility bills such as waterelectricitypower in name of proprietary concern
67
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Annexure 3 Opening a bank account for a
partnership firm company and trustee society foundation
Opening a bank account for
partnership firm
bullThe name of the partnership firm legal name address and partnerrsquos name and address with the following documents
bullRegistration certificate
bullPartnership deed
bullPower of Attorney
bullAny official valid document identifying partners name and address
bullTelephone bill with the name of firm partner
Opening a bank account for a
company
bullName of the company principal place of business mailing address of the company and telephone number with the following documents
bullCertificate of incorporation and Memorandum of Articles of Association
bullResolution of the board of directors to open an account
bullPower of Attorney granted to its manager to transact business itself
bullCopy of PAN allotment number Copy of telephone bill
Opening a bank account for a
TrusteeSociety
Foundation
bullName of trusteebeneficiaries and signatories name and address the founder manager and telephone number must be provided in addition to the following documents
bullCertificate of registration
bullPower of Attorney granted to transact business itself
bullAny official valid document to identify the trusteesbeneficiaries and those holding the Power Of Attorney
bullResolution of the managing body of the association
bullTelephone Bill
68
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1
Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Filing of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34) IN Spice 32
Form Spice32 are to be duly filled and submitted to RoC for incorporation of company
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
9
DIN DPIN DSC
Filing for Incorporation through form Spice 32
Reservation of Name
Incorporation of new company
Allotment of DIN
Making of seal of a company for issuance of share certificates Obtain certificate of incorporation
CetIncorporation
Commence Operation
Certificate Agreement
Incorporation of Company
Company Types -Private Public OPC Producer Company Section 8 company
1 2
3
7
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
eMOA eAOA Stamp4 5 6
98
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Check availability of name for incorporation of company
MCA21 system will auto generate the pre-filled application forms 49A (PAN) and 49B (TAN) after submission of SPICe which the stakeholders will be required to download affix digital signature and then upload both signed forms on MCA21 system as linked forms
New version of SPICe incorporation form will be processed only after Forms 49A amp 49B are duly signed uploaded and payment is confirmed by MCA
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
2
Annexure 4 Entry Procedures in India Registration process Overview
8
7
6
5
4
3
1Obtain Director Identification Number (DIN) for proposed Directors of the new Company For LLP obtain Designated Partner identification PIN (DPIN)
Obtain Digital Signature Certificate (DSC) for proposed Directors of the Company
Filing the proposed name of company for approval from the Registrar of Companies (Form INC 1)
FIling of electronic Memorandum of Association (eMoA- INC 33) amp Articles of Association (eAoA- INC 34)
Stamping the document either at of Stamps or to the authorized bank and payment of stamp duty (LLP Agreement needs to be stamped)
Form INC 2 are to be duly filled and submitted to RoC for incorporation of LLP
RoC verifiesscrutinises all the documents and forms and may suggest few changes to be made in the attachments or form itself One needs to make necessary changes accordingly
Making of seal of a company for issuance of share certificates
9
DIN DPIN DSC
Companyrsquos Name reservation registration in
ROC
MOA AOA Stamp
Filing for incorporation of LLP
Seal
Filing of LLP agreement (Form 3)
CetIncorporation
Form 3 amp Form 4
LLP Agreement
Certificate Agreement
Incorporation of LLP
Company Types -LLP
1 2
3
4 5 6
7
9
8
State Registration Process as applicable
List of state registration process has been illustrated from slide 18- 26
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Time ndash 12 days Form- NA
Obtain a Permanent Account Number (PAN) from an authorized franchise oragent appointed by National Securities Depository Services Limited (NSDL) orUnit Trust of India (UTI)
Register for value added tax (VAT) before the Sales Tax Officer of the ward in which the company is located
Register for Profession tax
Register with Employees Provident Fund Organization
Register with ESIC (medical insurance)
Register under Shops and Establishment Act
Filing for Government Approval before RBIFIPB for Foreigners and NRIs
Other registrations required (as applicable)
while setting up
Company LLP in India
Time ndash 12- 15 days Form ndash VAT 100 amp VAT 101
Time ndash 12 days Form- NA
Time ndash 12 -15 days Form- Form F amp B
Obtain a Tax Account Number (TAN) for income taxes deducted at source from the Assessing Office in the Income Tax Department
Time ndash 7 days Form ndash 49B
Time ndash 12 days Form- NA
Annexure 4 Entry Procedures in India Registration process Other registration requisite as applicable (contd)
Time- 6 days Form- Form 49A 49 AA for CSF
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Annexure 5 Types of trade agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
72
The Trade Agreements between two or more countries can be of the following types
Preferential Trade AgreementPTA
bull Two or more partners agree to reduce tariffs on agreed number of tariff lines
bull The list of products on which the partners agree to reduce duty is called positive list
bull India MERCOSUR PTA is one such example
Comprehensive Economic Cooperation Agreement Comprehensive Economic Partnership Agreement (CEPA)CECACEPA
bull These agreements consist of an integrated package on goods services and investment along with other areas including IPR competition customs cooperation investment etc
bull The India Korea CEPA is one such example
Free Trade AgreementFTA
bull Tariffs on items covering substantial bilateral trade are eliminated between the partner countries
bull India Sri Lanka FTA is an example
bull In FTA there is a negative list on which duty is not reduced or eliminated
bull FTAs cover a wider range of products amp services as compared to PTAs
What are the different types of Trade Agreements
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Source httpwwwindiantradeportalinvsjsplang=0ampid=055288httpcommercenicintradeinternational_ta_current_detailsasp
73
What are the different types of Trade Agreements
The Trade Agreements between two or more countries can be of the following types
Custom Union
bull Partner countries decide to trade at zero duty among themselves with set tariffs for other countries
bull European Union is an example of a custom union
Common Market
bull It is one step ahead of a Custom Union
bull It facilitates free movement of labour and capital harmonizes technical standards across members etc
bull European Common Market is an example
Economic Union
bull Economic Union is a Common Market extended through further harmonization of fiscalmonetary policies and shared executive judicial amp legislative institutions
bull European Union (EU) is an example
Annexure 5 Types of trade agreements
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Annexure 6 Rules of Origin
Source 74
What are Rules of Origin
For the purpose of trade statistics
To determine whether imported products shall receive most-
favoured-nation (MFN) treatmentor preferential treatment
Rules of Origin (ROO)Criteria to determine
country of origin of a productfor purposes of international trade
Important because duties and restrictions usually depend
upon the source of imports
For government procurement
To implement measures and instruments of Commercial policy like anti-dumping duties
and safeguard measures
For the application of labellingand marking requirements
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Source httpkasezgovinprocedure-to-set-up-a-unitbull For online submission httpswwwsezonline-ndmlcompdfNew20Unit20Applicationpdf
Name of the EPC Contact Details
The Gem amp Jewellery Export
Promotion Council
Head Office and Registered Office No AW 1010 Tower A G Block Bharat Diamond Bourse Next
to ICICI Bank Bandra Kurla Complex Bandra - East Mumbai
Tel 91 - 22 - 26544600 Fax 91 - 22 - 26524764 Email hogjepcindiacom
CAPEXIL (Chemical and Allied
Export Promotion Council of
India)
Vanijya Bhavan International Trade Facilitation Centre 3rd Floor 11 Wood Street Kolkata-700016
Tel 033-228905240525
E-mail infocapexilcom
Website wwwcapexilcom
EEPC INDIA ( Formerly
Engineering Export
Promotion Council)
Registered and Head Office Vanijya Bhavan(1st Floor) International Trade Facilitation Centre 11
Wood Street Kolkata-700 016 Tel 033-228906515253 Fax 033-22890654 E-mail
eepchoeepcindianet Website wwweepcindiaorg
Territorial Division Vandhna (4th Floor) 11 Tolstoy Marg New Delhi-110 001
Tel 011-23353353 Fax 011-23310920 E-mail eepctoeepcindianet eepctoeepcgovin
Pharmaceuticals Export
Promotion Council
101 Aditya Trade Centre Ameerpet Hyderabad-500 038 Tel 040-2373546266
Fax 040-23735464 E-mail infopharmexcilcom Website wwwpharmexcilcom
Apparel Export Promotion
Council
Registered Office A-223 Okhla Industrial Area Phase-I Okhla New Delhi-110 020 Tel 011-
26372721 Fax 011-26814251 E-mail atdcdelethnet
Head Office Apparel House Institutional Area Sector-44 Gurgaon Haryana-122 003 Tel 0124-
2708000-03 Fax 0124-2708004
E-mail administratoraepcindiaco m
The Cotton Textiles Export
Promotion Council
Engineering Centre 5th Floor 9 Mathew Road Behind Opera House Mumbai-400 004 Tel 022-
23632910 11 12 Fax 022-23632914 E-mail infotexprocilorg Website wwwtexprocilorgin
Annexure 7 Contact details of export promotion councils
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Disclaimer
We make no claims promises assurances or guarantees about the accuracy completeness or adequacy of any information contained in this document Nothing contained on this website should be construed to constitute a recommendation endorsementor views of the Government Since the policy evolves and is amended regularly the user is advised to ascertain the position as per the Policy and other extant law and regulations at the relevant time In case of any dispute the position as per extant law andpolicy as amended from time to time shall only be valid
Invest India its management directors employees or staff shall not be held responsible or held liable for any informationcontained in the responseclarification or any action consequence arising out of any contrary view(s) taken by any other party or statutory authority qua this document
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt
Contact URL for Clarification
Foreign Trade-related queries INVEST INDIA (Investment Facilitation Cell)
Queries related to duties taxes
Directorate General of Foreign Trade
Address Udyog Bhawan H-Wing Gate No 2 Maulana Azad Road New Delhi 110011
Phone No- 91-11-230615621800111550
E-mail- dgftnicin
Website httpdgftgovin
Vigyan Bhavan AnnexeMaulana Azad RoadNew Delhi 110 001Tel +91-11-23048155Email contactinvestindiaorginWebsite wwwinvestindiagovin
Central Board of Indirect Taxes amp CustomsWebsite httpwwwcbicgovinindexEmail (Tax-related) - ccu-cexamdnicin ccu-cexkoanicinEmail (Customs-related) - ccu-cusamdnicin
Please connect in case of doubt