This page answers common questions about India’s Foreign Trade Policy, DGFT schemes, export incentives, customs, and international trade. If you have a question that is not answered here, contact RASP International for personalized guidance. We have been serving Indian exporters and importers since 2005.
Complete EXIM and DGFT Knowledge Base
What is an IEC code and who needs it?
IEC stands for Importer Exporter Code. It is a 10-digit identification number issued by the Directorate General of Foreign Trade (DGFT) in India. Every business (proprietorship, partnership, LLP, company, trust, HUF) that wants to import goods into India or export goods from India for commercial purposes needs a valid IEC. Since 2017, IEC is aligned with the PAN of the business, but it still requires activation on the DGFT portal.
How long does IEC registration take in India?
With complete and correctly prepared documentation, IEC registration typically takes 3 to 5 working days. Delays usually occur due to mismatched PAN data, incomplete address proofs, or bank certificate errors. RASP International handles IEC registration with same-day filing and typically delivers IEC within 3 business days.
What is the cost of IEC registration in India?
IEC registration is the foundation for any India export or import business. RASP International prepares the application, handles DGFT portal submission, tracks approval, and delivers your IEC certificate ready for use. Talk to us for a case specific quote.
Is IEC mandatory for service exports from India?
Yes, IEC is mandatory for service exporters who want to claim any benefit under the Foreign Trade Policy, receive foreign currency remittances through the banking system, or engage in commercial service exports. Service providers should obtain IEC to ensure compliance and access to export incentives.
What is RoDTEP and when was it introduced?
RoDTEP stands for Remission of Duties and Taxes on Export Products. It is an export incentive scheme introduced by the Government of India on January 1, 2021 as a replacement for the MEIS scheme. RoDTEP refunds embedded central, state, and local taxes and duties that are not refunded under any other mechanism, making Indian exports more competitive globally.
What are the current RoDTEP rates?
RoDTEP rates vary by product and HS code, ranging from 0.3% to 4.3% of the FOB value of exports, with specific per-unit caps for some categories. Over 10,000 HS codes are covered. Current rates are notified by DGFT and updated periodically through official circulars.
Until when is the RoDTEP scheme extended?
The RoDTEP scheme has been extended until September 2026 based on the latest Government of India notifications. The scheme may be further extended based on future policy decisions.
Can I claim both RoDTEP and Duty Drawback on the same export?
No. Exporters must choose between RoDTEP and All Industry Rate (AIR) of Duty Drawback for the same shipping bill. You cannot claim both on the same export shipment. Most exporters now opt for RoDTEP as it typically offers better incentive value.
What is RCMC and who issues it?
RCMC stands for Registration Cum Membership Certificate. It is issued by one of 37 Export Promotion Councils (EPCs) or Commodity Boards in India. An exporter obtains RCMC from the EPC that covers their main line of business. RCMC is mandatory for availing most benefits under the Foreign Trade Policy.
How long is RCMC valid?
RCMC is typically valid for five years from the date of issuance. An Export Promotion Council membership must be maintained for the certificate to stay active. If membership lapses, the RCMC becomes invalid and benefits under the Foreign Trade Policy become inaccessible.
What is the EPCG scheme?
EPCG stands for Export Promotion Capital Goods scheme. It allows import of capital goods at zero customs duty against an export obligation equivalent to 6 times the duty saved, to be fulfilled over 6 years. The scheme is used by manufacturers who need capital equipment for production of export goods.
What is Advance Authorization?
Advance Authorization is a scheme that allows duty-free import of inputs (raw materials, components, consumables) that are physically incorporated in export products. The inputs must be imported against a specific export obligation to be fulfilled within a notified period, typically 18 months.
What is Status Holder Certificate in India?
Status Holder Certificate is issued by DGFT to exporters based on their 3-year export performance. It grants recognition as One Star, Two Star, Three Star, Four Star, or Five Star Export House, with increasing benefits including preferential customs treatment, reduced bank guarantees, and faster application processing at DGFT.
What is the difference between DGFT RA and DGFT HQ?
DGFT RA (Regional Authority) offices handle routine licensing and registration at the regional level. There are RA offices across India in cities like Mumbai, Delhi, Chennai, Kolkata, Bangalore, and Ahmedabad. DGFT HQ in New Delhi handles policy matters, appeals, clarifications, and cases that fall outside routine RA jurisdiction.
What is the Denied Entity List (DEL)?
The Denied Entity List is a list maintained by DGFT of businesses that are barred from availing benefits under the Foreign Trade Policy. Businesses typically end up on DEL due to unfulfilled export obligations, pending dues, or non-compliance with DGFT authorizations. Being on DEL blocks all FTP benefits until resolution.
What is AD Code registration?
AD Code (Authorized Dealer Code) is a 14-digit code issued by the exporter’s bank that is registered at the specific port of export with Indian Customs. AD Code registration is mandatory before any export consignment can be cleared through a port. Separate registration is required at each port you use.
Is a Digital Signature Certificate mandatory for DGFT filings?
Yes. A valid Class 3 Digital Signature Certificate (DSC) is mandatory for filing applications on the DGFT online portal. The DSC must be issued by a Certifying Authority approved by DGFT. The DSC is valid for 2 years and covers DGFT, GST, MCA, and other government portal filings.
How many Export Promotion Councils are there in India?
India has 37 notified Export Promotion Councils and Commodity Boards, each covering specific product categories. Examples include FIEO (general exporters), EEPC India (engineering goods), AEPC (apparel), GJEPC (gems and jewellery), PHARMEXCIL (pharmaceuticals), CAPEXIL (chemicals), and Spices Board.
What is the RoSCTL scheme?
RoSCTL stands for Rebate of State and Central Taxes and Levies. It is a specific export incentive scheme for apparel and made-ups exporters in India. It replaced the ROSL scheme. RoSCTL provides rebates on state and central embedded taxes that are not refunded through other mechanisms.
What is GSP certification and is it still relevant?
GSP stands for Generalized System of Preferences. It was a preferential tariff system granted by developed countries to developing countries. India was previously a GSP beneficiary of the USA, but this was terminated in 2019. GSP certification is still relevant for exports to some other GSP schemes like the EU, Japan, and certain other countries.
What is REX registration?
REX stands for Registered Exporter system. It is the European Union’s electronic registration of exporters for GSP purposes. Indian exporters who want to claim preferential tariffs for exports to the EU under GSP need REX registration, which allows them to self-certify the origin of their products.
What is Certificate of Origin (COO)?
Certificate of Origin is a document that establishes the country of origin of exported goods. It is required for customs clearance in the importing country and for availing preferential tariffs under Free Trade Agreements. In India, COOs are issued by authorized chambers of commerce and trade bodies.
Is GST refund available for exporters?
Yes. Exporters can claim GST refund either under the LUT (Letter of Undertaking) route without paying IGST, or under the IGST-paid refund route. Both methods allow recovery of GST paid on inputs used for exports. Proper GST compliance and timely refund filing are essential.
What is the India-UAE CEPA?
India-UAE Comprehensive Economic Partnership Agreement is a trade agreement between India and the United Arab Emirates, effective from May 1, 2022. Under CEPA, duties have been eliminated or reduced on 97% of goods traded between the two countries, providing significant benefits to Indian exporters to UAE.
What is SIMS registration?
SIMS stands for Steel Import Monitoring System. It is a mandatory online registration for importers of specified steel products into India. Importers must register their consignment on the SIMS portal before the arrival of the goods at an Indian port. SIMS is administered by DGFT.
What are export incentives available to Indian exporters?
Indian exporters can avail multiple export incentives including RoDTEP scrips, RoSCTL for textiles and apparel, Duty Drawback for basic customs duty refund, EPCG for capital goods, Advance Authorization for inputs, Status Holder benefits for consistent exporters, GST refunds, Interest Equalization Scheme, Market Access Initiative (MAI), and various EPC-specific support programs.
What documents are required for customs clearance of exports?
Standard documents for export customs clearance include commercial invoice, packing list, shipping bill, bill of lading or airway bill, certificate of origin (if applicable), inspection certificates (if applicable), LUT or IGST declaration for GST, export license or authorization (for restricted items), and any product-specific certifications or approvals.
What is the current Foreign Trade Policy of India?
The current Foreign Trade Policy is FTP 2023-28, announced by the Government of India on March 31, 2023 and applicable from April 1, 2023. FTP 2023-28 is a dynamic policy with no fixed end date, allowing continuous updates to respond to evolving trade priorities and global developments.
How do I start an export business in India?
Starting an export business in India requires these key steps: obtain a PAN card and GST registration, register your business (proprietorship, partnership, company, or LLP), obtain Importer Exporter Code (IEC) from DGFT, get RCMC from the relevant Export Promotion Council, open a current account with an AD (Authorized Dealer) bank, register AD Code at your preferred port, research international markets and buyers, and understand product-specific compliance and certifications.
What is the role of DGFT in India?
The Directorate General of Foreign Trade (DGFT) is the nodal agency under the Ministry of Commerce and Industry, Government of India, responsible for formulating and implementing India’s Foreign Trade Policy. DGFT issues Importer Exporter Codes, administers export promotion schemes, regulates imports and exports of restricted goods, and works to enhance India’s international trade.
What is Norms Fixation in Advance Authorization?
Norms Fixation is the process of establishing Standard Input Output Norms (SION) for products that do not have pre-notified SIONs. For such products, the exporter applies to the Norms Committee at DGFT with details of inputs and outputs. The committee reviews and fixes product-specific norms that are then used for Advance Authorization applications.
What is EODC in DGFT?
EODC stands for Export Obligation Discharge Certificate. It is issued by DGFT after an exporter fulfills the export obligation under schemes like EPCG or Advance Authorization. EODC confirms closure of the license and releases the bank guarantee or bond executed at the time of license issuance.
What is the Interest Equalization Scheme?
The Interest Equalization Scheme (IES) is a government scheme that provides interest subvention to specified MSME and merchant exporters on pre-shipment and post-shipment rupee export credit. The scheme aims to make export credit cheaper and enhance the competitiveness of Indian exports.
What is the full form of MEIS and is it still active?
MEIS stands for Merchandise Exports from India Scheme. It was an earlier export incentive program that provided duty credit scrips based on FOB value of exports. MEIS was discontinued on January 1, 2021 and replaced by RoDTEP due to WTO compliance concerns. MEIS is no longer active for new exports.
What is the SEIS scheme?
SEIS stands for Services Exports from India Scheme. It was an incentive scheme for service exporters providing notified services from India. SEIS provided duty credit scrips based on net foreign exchange earnings. SEIS was discontinued in April 2020 and is no longer available for new service export claims.
Can I export without IEC from India?
For commercial exports, IEC is mandatory. Limited exceptions exist for imports or exports for personal use, exports by government departments, and certain small-value non-commercial shipments. However, for any business engaged in commercial international trade, IEC is a legal requirement.
What is the cost of RoDTEP scrips in the secondary market?
RoDTEP scrips are freely transferable and sold in the secondary market typically at 90 to 98% of face value, depending on demand from importers. The exact price depends on market conditions, scrip amount, and urgency. Scrip trading platforms facilitate these transactions.
Who can issue Certificate of Origin in India?
Certificate of Origin in India can be issued by authorized agencies including chambers of commerce (FICCI, CII, ASSOCHAM), Export Promotion Councils, and other government-authorized bodies. For preferential COOs under Free Trade Agreements, specific designated agencies are notified by the government.
What is Free Trade Agreement (FTA)?
A Free Trade Agreement is an international trade agreement between two or more countries that reduces or eliminates tariffs, quotas, and other trade barriers on specified goods and services. India has FTAs with ASEAN, Japan, Korea, UAE (CEPA), Australia (ECTA), and others, with ongoing negotiations with the EU, UK, and other partners.
What is DGFT e-Com exports facilitation?
DGFT e-Com export facilitation is a simplified framework for cross-border e-commerce exports from India. It includes provisions for exports through courier mode with simplified documentation, EDI-based customs clearance, and IGST refund processes specifically designed for e-commerce exporters.
What is the role of ICEGATE in customs?
ICEGATE is the Indian Customs Electronic Gateway, the e-filing platform of the Central Board of Indirect Taxes and Customs (CBIC). Exporters and importers file shipping bills, bills of entry, and other customs documents through ICEGATE. It is integrated with DGFT for scheme-related data exchange.
What is AEO certification in India?
AEO stands for Authorized Economic Operator. It is a voluntary certification program administered by the Indian Customs that recognizes businesses with high compliance standards. AEO-certified businesses enjoy faster customs clearance, reduced inspections, and other trade facilitation benefits.
What is EDF in customs?
EDF stands for Export Declaration Form. It is a declaration filed by exporters under the Foreign Exchange Management Act (FEMA) confirming that foreign exchange for the export will be realized within the specified period. EDF is now largely automated through ICEGATE.
What is the deemed exports category in FTP?
Deemed exports refer to transactions where the supplied goods do not physically leave India but are treated as exports for FTP purposes. Examples include supplies to SEZ units, EOUs, UN agencies, and projects funded by multilateral agencies. Deemed exporters are eligible for certain FTP benefits.
Can Indian exporters claim benefits for services exports?
Currently, no specific incentive scheme covers services exports after SEIS was discontinued. However, service exporters can still claim GST refunds on inputs and certain benefits under the Interest Equalization Scheme if eligible. Policy discussions on a new services export incentive are ongoing.
What is the EDPMS portal?
EDPMS stands for Export Data Processing and Monitoring System. It is a portal of the Reserve Bank of India (RBI) that tracks realization of foreign exchange against shipping bills. Exporters must ensure their shipping bills are regularized in EDPMS to avoid RBI caution listing and continue accessing banking facilities.
What is the EPCH and who does it serve?
EPCH stands for Export Promotion Council for Handicrafts. It is an Indian government-recognized EPC that serves exporters of handicrafts, gift items, home decor products, and related categories. EPCH facilitates RCMC registration, trade fair participation, and other support for handicraft exporters.
What is the role of Commercial Attaché in Indian embassies?
Commercial Attachés and Commercial Representatives posted at Indian embassies and consulates abroad help Indian exporters with market intelligence, buyer identification, trade dispute resolution, and facilitation of Indian business presence in foreign markets. They work with EPCs and the Ministry of Commerce.
What is dual-use export control in India?
Dual-use goods are items with both civilian and potential military applications. India controls their export through the SCOMET list (Special Chemicals, Organisms, Materials, Equipment and Technologies). Export of SCOMET-listed items requires specific authorization from DGFT and is subject to strict end-use verification.
What is the Project Authority Certificate in DGFT?
Project Authority Certificate is issued by the designated project authority for deemed export supplies to specific government or multilateral-funded projects. The certificate is used by the supplier to claim deemed export benefits under the Foreign Trade Policy.
What is third party authorization in DGFT schemes?
Third party authorization allows a party other than the license holder to handle certain activities under DGFT schemes, such as receiving imports or fulfilling export obligations. Specific procedures and documentation are required for third party arrangements, and RASP International assists with these.
Who do I contact for DGFT consulting services?
You can contact RASP International for comprehensive DGFT consulting services across India. Call +91 8218043048, WhatsApp us at wa.me/918218043048, or email [email protected]. Our office is at A-39, New Agra Colony, Agra, Uttar Pradesh 282005. We serve exporters and importers pan-India.
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