Import / Export License

What is Import and Export License?

The import and export system in India is regulated by the Foreign Trade (Development and Regulation) Act of 1992 and India’s Export Import Policy. It is required to be registered with regional licensing authority for the import and export of goods and commodities. The export and import of all commodities are free except for the items included in India’s Export Import policy.

Import-Export

Export License

Export license is a document issued by the appropriate licensing agency for the export of certain commodities. Using this the exporter is allowed to transport his product in a foreign market. The export license is depended on the type of goods to be exported and the final market. Thus, it is needed for the exporter to determine whether the commodity requires export license.

According to the export policy the goods are classified as restricted, prohibited and state trading enterprise. There is no restriction for other goods which are not mentioned in these categories. 

The restricted commodities can be exported only with the possession of an export license from the appropriate licensing authority. The whole process should be in the manner specified by the licensing authority through a set of procedures or conditions.

The prohibited items are strictly prohibited for export. These consist of wild animals and animal articles that may carry a risk of infection.

The export of some commodities are done exclusively through State Trading Enterprises (STE).

The list of restricted, prohibited goods and those goods under State Trading Enterprise are given in Indian Trade Classification (ITC) Harmonized System (HS).

Import License

Import license is a document issued by a national government for the import of certain commodities into its region. The aim is to discriminate against another country’s commodities in order to protect the indigenous industries from foreign competition. According to the import policy the goods are classified as restricted, canalized and prohibited. There is no restriction for other goods which are not mentioned in these categories. The restricted commodities can be imported only with the possession of an import license from the appropriate licensing authority. The whole process should be in the manner specified by the licensing authority. 

The canalized commodities could be imported only by strictly following certain specific procedures or mechanisms of transport. The import of such goods are done through canalizing agencies. The canalized goods include some pharmaceutical products, petroleum products and bulk agricultural products such as grains and vegetable oils.

The prohibited items are strictly prohibited for import. The prohibited goods consist of animal rennet, unprocessed ivory, tallow fat and oils of animal origin and wild animals.The list of restricted, canalized and prohibited goods are given in Indian Trade Classification (ITC) Harmonized System (HS). The import license is valid for 18 months for all goods. However it is valid for 24 months for capital goods.

What are the forms under Import/Export License in India?

Aayaat Niryaat Form 1 (ANF 1): This form is the profile of Importer or Exporter.

Aayaat Niryaat Form 2A (ANF 2A): This is the form for the Importer Exporter Code Number (IEC).

Aayaat Niryaat Form 2B (ANF 2B): This is the Import License for restricted items.

Aayaat Niryaat Form 2C (ANF 2C): This is the import certificate under Indo-US memorandum.

Aayaat Niryaat Form 2C (ANF 2C – 1): This is the application form for end user certificate under para 2.11A of the HBPv1.

Aayaat Niryaat Form 2D (ANF 2D): This the export license for restricted items.

Aayaat Niryaat Form 2E (ANF 2E): Export license for SCOMET items.

Aayaat Niryaat Form 2EE (ANF 2EE): This is the application form for request for entering into an arrangement or understanding that involves site visit, on site verification or access to records or documentation as mentioned in appendix 3 of schedule 2 of ITC (HS) classification of export and import items.

Aayaat Niryaat Form 2F (ANF 2F): It is the form for the refund of application fee.

Aayaat Niryaat Form 3A (ANF 3A): This is the form for the grant of status certificate.

Aayaat Niryaat Form 3B (ANF 3B): This is the application form for Service Exports from India Scheme.

Aayaat Niryaat Form 3C (ANF 3C): This is the common application form for VKGUY, FMS AND FPS (including MLFPS) for exports made on or after 27/08/2009.

Aayaat Niryaat Form 3D (ANF 3D): This is the application form for export of goods through courier or foreign post offices under Merchandise Exports from India Scheme (MEIS).

Aayaat Niryaat Form 3E (ANF 3E): This is the application for no incentive certificate.

Aayaat Niryaat Form 4A (ANF 4A): This is the application form for the issue of Advance Authorization or Advance Authorization for annual requirement or invalidation letter or Advance Release Order (ARO).

Aayaat Niryaat Form 4B (ANF 4B): This is the application form for the fixation or modification of Standard Input Output Norms (SION).

Aayaat Niryaat Form 4C (ANF 4C): This is the form for the fixation of DEPB rates or fixation of brand rate of DEPB for SAD component.

Aayaat Niryaat Form 4D (ANF 4D): This form is for the clubbing of advance authorizations.

Aayaat Niryaat Form 4E (ANF 4E): This form is for the enhancement in CIF or FOB value or revalidation or EO extension of authorization.

Aayaat Niryaat Form 4F (ANF 4F): This form is for the redemption or no bond certificate against advance authorization.

Aayaat Niryaat Form 4G (ANF 4G): This is used for the application of Duty Entitlement Pass Book (DEPB).

Aayaat Niryaat Form 4H (ANF 4H): This is used for Duty Free Import Authorization (DFIA) application.

Aayaat Niryaat Form 4I (ANF 4I): This form is used for GEM REP authorization.

Aayaat Niryaat Form 5A (ANF 5A): This is for Export Promotion Capital Goods (EPCG) authorization.

Aayaat Niryaat Form 5B (ANF 5B): This is the statement of export or redemption of EPCG authorization.

Aayaat Niryaat Form 5C (ANF 5C): This is used for EO refixation under EPCG authorization. 

Aayaat Niryaat Form 5D (ANF 5D): This is for the clubbing of EPCG authorizations.

Aayaat Niryaat Form 8 (ANF 8): This form is for the fixation of drawback rates or claiming duty drawback on all industry rates or refund of terminal excise duty.

Aayaat Niryaat Form 8A (ANF 8A): This is for the application for payment of interest on delayed refund of Duty Drawback (DBK) or Terminal Excise Duty (TED) on deemed exports or Central Sales Tax (CST) on supplies to Export Oriented Units (EOU).

What are the documents required for Import/Export License Registration?

Documents required for proprietorship firms:

  • Digital photograph of the proprietor.
  • Copy of PAN card of the proprietor.
  • Copy of passport (first and last page) or voter’s ID or driving license or Aadhar card.
  • Sale deed if the business premise is self-owned. Rental or lease agreement in case office is rented or leased or latest electricity or telephone bill.
  • Bank certificate according to ANF 2A (I) or cancelled cheque consist of pre-printed name of applicant and account number.

Documents required for partnership firms:

  • Digital photograph of the managing partner.
  • PAN card copy of the applicant entity.
  • Copy of passport (first and last page) or voter’s ID or Aadhar card or driving license or PAN of the Managing Partner signing the application.
  • Copy of partnership deed.
  • Sale deed if the business premise is self-owned. Rental or lease agreement in case office is rented or leased or latest electricity or telephone bill.
  • Bank certificate according to ANF 2A (I) or cancelled cheque consist of pre-printed name of the applicant entity and account number.

Documents required for LLP firm or Government Undertaking or Public Limited Company or Private Limited Company or Section 25 Company:

  • Digital photograph of the designated partner or director of the company signing the application.
  • PAN card copy of the applicant entity.
  • Copy of passport (first and last page) or Voter’s ID or Aadhar card or driving license or PAN of the Managing Partner or Director signing the application.
  • Certification of incorporation as issued by the RoC.
  • Sale deed if the business premise is self-owned. Rental or lease agreement in case office is rented or leased or latest electricity or telephone bill.
  • Bank certificate according to ANF 2A (I) or cancelled cheque bearing pre-printed name of the company and account number.

Documents for registered society or trust: 

  • Digital photograph of the signatory applicant or secretory or chief executive.
  • PAN card copy of the applicant entity.
  • Copy of passport (first and last page) or voter’s ID or Aadhar card or driving license or PAN of the secretary or chief executive or Managing Trustee signing the application.
  • Sale deed if the business premise is self-owned. Rental or lease agreement in case office is rented or leased or latest electricity or telephone bill.
  • Registration certificate of the society or copy of the trust deed.
  • Bank certificate according to ANF 2A (I) or cancelled cheque bearing pre-printed name of the registered society or trust and account number.

Documents required for HUF firms:

  • Digital photograph of the Karta.
  • Copy of PAN card of the Karta.
  • Copy of passport (first and last page) or voter’s ID or Aadhar card or driving license of the Karta.
  • Sale deed if the business premise is self-owned. Rental or lease agreement in case office is rented or leased or latest electricity or telephone bill.
  • Bank certificate according to ANF 2A (I) or cancelled cheque consists of pre-printed name of applicant and account number.

 

What is the procedure for applying for Import and Export License?

  • Fill the application form in the prescribed format of ANF 2A. Submit it to the regional office of DGFT.
  • Submit the required documents.
  • File the application with DGFT via Digital Signature Certificate (DSC). Pay the Import Export License fees for obtaining the license.
  • After the approval of the application the Import Export registration Code is obtained in the form of soft copy from the government.

What if you violate the law?

  • A person who imports or exports prohibited goods is liable to a penalty not exceeding the value of the goods or Rs.5000 whichever is the greater.
  • A person who imports or exports dutiable goods other than prohibited goods is liable to a penalty not exceeding the duty sought to be evaded on such goods or Rs.5000 whichever is the greater.
  • A person who imports goods in respect of which the value declared is higher than the value thereof is liable to a penalty not exceeding the difference between the declared value and the value thereof or Rs.5000 whichever is the greater.

Conclusion

For the import and export of certain goods in India, it is required to possess Import Export License. It is required to strictly follow the rules and regulations under the act. Failing to comply with these lead to punishable offenses.

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