EXIM TRADE TRAINING MODULE S Ramakrishna Balaji Mariline

EXIM TRADE – TRAINING MODULE S. Ramakrishna Balaji Mariline Pvt Ltd rama@balajimariline. com +919811079447 S. Sitaram Balaji Mariline Pvt Ltd sitaram@balajimariline. com +919811779447

Requisites of EXIM TRADE 1. IEC • Pan • Bank account – letter from bank 2. GST Registration 3. Registration with customs with AD code, DBK bank details. ANF -2 A APPLICATION FORM FOR ISSUE/MODIFICATION IN IMPORTER EXPORTER CODE(IEC) NUMBER Proprietorship, Partnership firm, Pvt Ltd co. , Public Ltd companies, LLP, Govt of India undertaking or co. Registered HUF or Society HUF

• Digital Photograph (3 x 3 cms) of the Proprietor. • Copy of PAN card of the Proprietor. • Copy of Passport (first & last page)/Voter’s I-Card/ Driving Licence/UID (Aadhar card) (any one of these). • Sale deed in case business premise is self-owned; or Rental/Lease Agreement, in case office is rented/ leased; or latest electricity /telephone bill. • Bank Certificate as per ANF 2 A(I)/ Cancelled Cheque bearing preprinted name of applicant and A/C No.

WHAT TO EXPORTS AND HOW TO EXPORTS: The Indian Trade Classification (ITC)-Harmonized System (HS) classifies goods into three categories: • Restricted • Canalized • Prohibited

• Licensed (Restricted) Items Restricted items can be imported only after obtaining an import license from the relevant regional licensing authority. The goods covered by the license shall be disposed of in the manner specified by the license authority, which should be clearly indicated in the license itself. The list of restricted goods is provided in ITC (HS). An import license is valid for 24 months for capital goods, and 18 months for all other goods • Canalized Items Canalized goods are items which may only be imported using specific procedures or methods of transport. The list of canalized goods can be found in the ITC (HS). Goods in this category can be imported only through canalizing agencies. The main canalized items are currently petroleum products, bulk agricultural products, such as grains and vegetable oils, and some pharmaceutical products.

• Prohibited Items These are the goods listed in ITC (HS) which are strictly prohibited on all import channels in India. These include wild animals, tallow fat and oils of animal origin, animal rennet, and unprocessed ivory.

Export Policy • Just like imports, goods can be exported freely if they are not mentioned in the classification of ITC (HS). Below follows the classification of goods for export: • Restricted • Prohibited • State Trading Enterprise

• Restricted Goods Before exporting any restricted goods, the exporter must first obtain a license explicitly permitting the exporter to do so. The restricted goods must be exported through a set of procedures/conditions, which are detailed in the license. • Prohibited Goods These are the items which cannot be exported at all. The vast majority of these include wild animals, and animal articles that may carry a risk of infection. • State Trading Enterprise (STE) Certain items can be exported only through designated STEs. The export of such items is subject to the conditions specified in the EXIM policy.

SELECTION OF PRODUCTS: • • Requirements related to Products Participating Government Agencies Registration Facilities by the Government for imports and re-exports Fresh fruits and vegetables Plant & Quarantine Engineering products none – registration of eepc, Medicines ADC There are 35 Export Promotion councils under Ministry of Commerce – RCMC • Apparel Export Promotion Council • Basic Chemicals, Pharmaceuticals & Cosmetics EPC ready made garments chemicals, cosmetics, perfumery, Agarbatis etc

• FIEO • Carpet Export Promotion Council • CAPEXIL. Animal By-products, Automobile Tyres & Tube, Books, Publishing & Printing The Cotton Textiles Export Promotion Council • Council for Leather Exports • HELPS Promotion of exports, gives referrals, organises exhibitions, buyers and sellers meet, etc • • Fresh fruits and vegetables Plant & Quarantine Temperature Sensitive, Pack houses Packing standards Printing standards with languages Should be free of chemicals Engineering products none – registration of eepc, • Medicines • Certificate from Wild Life Protection board • NOC from Drug Controller

Types of Exporter • Manufacturer – Adv LIC, EPCG et • Merchant – supporting manufacturer concept • Identified products and buyers next step would be • Order and acceptance which is a contract • Inco terms Ex works, FOB, C&F, CIF, DDP and DDU • Payment terms

• Incentives • MEIS • Drawback • Refund of IGST • Faceless by customs • Shipping bills • White no incentive • Green with drawback • Others with combinations