Import Export Business

Any company which exchanges internationally any goods and services and delivers that domestically and vice versa is known as Import Export Business.

The difference between import export business in India is that an export refers to selling products and services which are produced in the home country towards other markets. An import refers to bringing in the products and services into the home country. An import in the receiving nation is an export towards the sending nation.

Import export business in India

Documents needed for an Import Export business in India

•    Company registration certificate – A lawful document that establishes that a business or a firm has been registered as a business, elucidating the terms of business as well as incorporation.

•    PAN card – A PAN card is basically a digital system that monitors an individual’s or a corporation’s tax-related transactions, by means of a single Permanent Account Number.

•    Current Account – A bank account that is maintained and only been used for business.

•    Import Export Code (IEC) – This IEC denotes to the import export license which is issued by the Government of India. It is a 10-digit code which is issued by the Director-General of Foreign Trade (DGFT), Department of Commerce.

•    Registration Cum Membership Certificate – This is issued through the Exports Promotional Council (EPC) towards the exporter. It confirms that the exports are government-approved good.

Setting up your Import Export business in India

•    Registering your corporation – In order to set up an import export business in India, relying on the type, you could register as a private company, partnership or sole ownership, with the government. 

•    PAN card for your commerce – You could use your existing PAN card or get a new PAN for your business, which is issued by the Indian government.

•    Securing an Import Export License – Import Export License is the 10-digit IEC that is issued by the DGFT. Securing this license is a compulsory condition in order to set up an import-export business in India.

•    Registration-cum-Membership-Certificate: When an IEC was acquired for the proposed Import Export business, you are then required to obtain an RCMC. This certificate shall be issued through the Export Promotional Council (EPC) towards the exporter confirming the reliability of the goods that the person exports. There is an over-all of 26 EPCs in and around the nation. An RcmMC could be acquired from any of these.

•    A bank account for the business – As specified by the RBI, you are required to open a current account for all financial transactions relating to your import-export business in India.

•    Hire an eCommerce Shipping Company: Import Export is mainly the transportation of products from one nation towards another. Thus, in order to deliver your goods across international borders, you must have a logistics firm that takes of safe delivery. You could check out various courier aggregators or look at a reliable shipping corporation.

Types of Import Export business in India

•    Export Trading Company (ETC): They function by means of finding domestic entities that could provide international buyers what they are looking for, and exporting it towards these overseas entities. 

•    Export Management Company (EMC): They function as facilitators for hire, for export corporations. They put the whole operation together for the export corporation (which includes finding buyers, distributors, arranging logistics, etc), and is remunerated for their services.

•    Import/Export Agents: They are basically free agents who purchase from domestic/foreign manufacturers, and thereafter resell the products to businesses around the world.
Export Promotion Schemes launched by the government

The Trade Infrastructure Export Scheme (TIEC) had launched in the fiscal year 2017 provides financial assistance towards businesses possessed by the Central and State Governments. As per this scheme, these businesses could secure monetary support for infrastructure projects. Between the year 2017 and 2019, an overall of 28 projects was aided by means of this scheme. Apart from this, the Government of India also focused on furnishing an international setting for trading within each state and creates an environment that inspires further exports from the nation.

As well as, the Director-General of Foreign Trade (DGFT) functions numerous export schemes;

•    Export promotion schemes, for instance, Advance Authorization

•    Export Promotion of Capital Goods

•    Duty-Free Import Authorization

•    Merchandise Exports from India Scheme (MEIS) and 

•    Services Exports from India Scheme (SEIS)

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Author:

eStartIndia Team