Legal

Startups planning to Export – Top 3 things to note

Export and Import trade is regulated by the Directorate General of Foreign Trade (DGFT) and its regional offices, functioning under the Ministry of Commerce and Industry. Policies and procedures are announced by the DGFT. This article is dedicated to all startups that are planning to export from India, proud of you guys! Startups planning to Export  here are the Top 3 things to note

Who can Export? The following persons can be an exporter:

  • Proprietorship
  • Partnership firm
  • Government undertaking
  • Public limited company
  • Section 25 Company
  • Registered society
  • HUF
  • LLP
  • Private Limited Company
  • Trust

1. Pre-requisite registrations:
  • Register your company/business organization.
  • Obtain the pan card
  • A current account with the bank.
  • GST Registration

2. Pre-Shipment, you need to have following documents in place:
  • Importer Exporter Code: You need to acquire Import Export Code from the regional authority of DGFT. They will also issue business identification number 15 digits Alphanumeric along with IEC. This BIN is based on PAN Card number.
  • Before the first import or export, you will require obtaining EDI registration with the specific port.
  • To avail export incentives and for a general guidance, registration with EPC/FIEO will be necessary (optional)
  • Terms of Payment and Terms of delivery as agreed with your overseas buyer
  • Pro-forma invoice
  • Export Order
  • Purchase order
  • All export contracts and invoices shall be realized in freely convertible currency. There is no restriction on invoicing of export contracts in Indian Rupees. Indian Rupee is not a freely convertible currency, as on today.
  • Export Declaration Form
  • Obtain necessary inspection certificate from the inspection agency (optional)
  • Certificate of Origin will be provided as per the buyer’s requirement. (optional)

Note:  It is permitted to receive advance payment by the exporter. However, the exporter should follow the regulations laid out by FEMA.


3. Post Shipment:

  • All the exporters have to give a declaration in the shipping bill reading as per FEMA act
  • The exporters shall be liable to realize and repatriate export proceeds as per FEMA Regulations (9 Months AP circular no.37 Dated: 20.11.2014).
  • The exporter is required to collect all the relevant documents and submit the same to his bank within the prescribed time limit (21 Days).
  • Documents presented by the exporter to his bank are forwarded to the importer through the banking channel. Depend upon the payment terms, Indian exporter will receive the payment. The bank will issue necessary e-BRC as per the guideline of DGFT.
  • Participants in international exhibition/trade fair have been granted general permission for opening a temporary foreign currency account abroad. Exporters may deposit the foreign exchange obtained by the sale of goods at the international exhibition/trade fair and operate the account during their stay outside India.

Wazzeer is vouched by Entrepreneurs as the most reliable Legal and Accounting Partner. We would be super excited to see your startup kick starts seamlessly. Let’s Connect! 🙂

Author


Avatar