Frequently Asked Questions
Core questions first-time and growing Indian exporters ask us. If your question is not listed here, contact us or write to [email protected].
What is an IEC code and who needs it?
IEC (Importer Exporter Code) is a 10-digit registration issued by DGFT under the Foreign Trade Policy 2023-28. Every business or individual that wants to export or import goods from India must have one. Without it, customs will not process your shipment and your bank cannot receive foreign remittances. Proprietorships, partnerships, LLPs, and Pvt Ltd companies all qualify. There is no minimum turnover requirement. Learn how we help with IEC registration.
How long does IEC registration take?
2 to 3 working days if your documents are clean. Common delays happen due to PAN mismatches, incorrect bank details, or DSC issues. Rasp International pre-checks all documents before submission so applications rarely get rejected. The DGFT fee is Rs 500, paid online during application.
What is RCMC and is it mandatory?
RCMC (Registration Cum Membership Certificate) is issued by Export Promotion Councils like FIEO, AEPC, EEPC, or CHEMEXCIL. It is not mandatory to export, but required to claim RoDTEP at enhanced rates, participate in government-sponsored trade fairs, access MAI scheme grants, and apply for export house status. Most serious exporters complete this within their first 3 months. See our RCMC service page.
What is RoDTEP and how do I claim it?
RoDTEP (Remission of Duties and Taxes on Exported Products) refunds non-recoverable domestic taxes embedded in your export product, including state levies, electricity duty, mandi tax, and fuel surcharges. It replaced MEIS in January 2021. The scheme has been extended to September 2026 with revised rates. Claims are credited as transferable e-scrips in your ICEGATE account. You need a valid IEC, correct HS code declaration on your shipping bill, and must tick the RoDTEP claim checkbox before Let Export Order. Full RoDTEP service details.
What happened to MEIS and SEIS?
MEIS (Merchandise Exports from India Scheme) was discontinued on 31 December 2020 and replaced by RoDTEP. SEIS (Service Exports from India Scheme) was discontinued under FTP 2023-28 and has not been replaced by an equivalent scheme. Pending MEIS/SEIS scrips for the transition period can still be applied for if the application window was met. MEIS details | SEIS details.
Do I need GST registration to export?
Yes. Exports are zero-rated under GST but you must be registered to file an LUT (Letter of Undertaking), which lets you export without paying IGST upfront. Without LUT, you pay IGST first and then wait months for a government refund. LUT is valid for a financial year and must be renewed each April. GST compliance for exports.
Can a sole proprietor export from India?
Yes. There is no minimum turnover, capital, or entity-type requirement. Proprietorships, partnerships, LLPs, and Pvt Ltd companies can all obtain an IEC and start exporting. Many Rasp International clients began as sole proprietors with zero export experience and scaled to multi-crore annual exports within 2 to 3 years.
What documents does a standard export shipment require?
Commercial Invoice, Packing List, Shipping Bill (filed on ICEGATE by your CHA), Bill of Lading or Airway Bill, Certificate of Origin if required by the destination country, and product-specific certificates such as FSSAI for food products, BIS for electronics, or Phytosanitary Certificate for agricultural goods. Customs clearance service.
What is AD Code registration?
AD Code links your bank branch to the export port or ICD you are shipping from. Without it, your CHA cannot file your Shipping Bill. It must be registered once per port per bank account. This is one of the most commonly missed steps that delays first-time shipments by weeks. AD Code and port registration service.
Can I claim both RoDTEP and Duty Drawback?
Yes, on the same shipment in many cases. Duty Drawback covers customs duty paid on imported inputs used in your export product. RoDTEP covers domestic embedded taxes on the production side. They do not overlap, provided your Shipping Bill declarations are made correctly for both. The combined benefit can significantly improve your export margins. Duty Drawback service.
What is the EPCG scheme?
EPCG (Export Promotion Capital Goods) allows you to import capital goods, machinery, and equipment at zero customs duty, subject to an export obligation of 6 times the duty saved over 6 years. It is one of the most powerful schemes under FTP 2023-28 for manufacturers scaling their export capacity. The 2026 guidelines include relief provisions when exports decline beyond 5 percent. Full EPCG 2026 guide.
How do I get an Export House Certificate?
You must demonstrate FOB exports of Rs 10 crore (for One Star) to Rs 15,000 crore (for Premier Trading House) in the current or preceding 3 financial years. Application is filed via ANF-2E on the DGFT portal. Export House status gives priority customs clearance, self-certification on origin documents, and exemption from compulsory negotiation of documents through banks. Export House Certificate service.
What is a Digital Signature Certificate (DSC) and why do exporters need it?
A Class 3 DSC is your digital identity for filing applications on DGFT, ICEGATE, and MCA portals. It replaces physical signatures on IEC applications, EPCG authorisations, Advance Authorisations, and shipping documents. A Class 3 DSC with encryption is mandatory for most DGFT operations. Validity is 2 years and it must be renewed before expiry to avoid filing delays. DSC service.
What is the India-UAE CEPA and how can exporters benefit?
The India-UAE Comprehensive Economic Partnership Agreement is a bilateral trade deal effective since May 2022. It offers tariff concessions of up to 100 percent on many Indian product categories exported to the UAE. To claim CEPA benefits, you need a Certificate of Origin issued through the DGFT COO portal, and your products must meet the Rules of Origin criteria. Complete India-UAE CEPA guide.
What is the difference between a CHA and a freight forwarder?
A Customs House Agent (now called Customs Broker) handles customs documentation, duty payments, and clearance at ports. A freight forwarder manages the actual transportation, booking of vessels or airlines, and logistics coordination. Many exporters need both. Rasp International provides end-to-end advisory covering both customs clearance and freight coordination. Customs advisory service | Freight advisory.
How do I find international buyers for my product?
Start with B2B platforms like IndiaMART Global, TradeIndia, Alibaba, and Global Sources. Attend DGFT-sponsored buyer-seller meets and international trade fairs through FIEO or ITPO. Use the Commerce Ministry trade statistics portal to identify which countries import your product category. Rasp International also provides buyer research and identification services. Buyer research service.
What is an Advance Authorisation?
Advance Authorisation (AA) allows duty-free import of raw materials, intermediates, and components needed to manufacture export products. The import must be used in the export product, and export obligation must be fulfilled within 18 months (extendable). AA and EPCG can be used together on different items. It is governed by Chapter 4 of the FTP 2023-28.
What certifications do I need to export food products from India?
FSSAI license is mandatory for all food product exports. Depending on the destination country, you may also need an Export Inspection Council (EIC) certificate, Phytosanitary Certificate from the Plant Quarantine Authority, Health Certificate, and sometimes HALAL certification for Middle Eastern markets. Product certification service.
How does ECGC insurance work for exporters?
ECGC (Export Credit Guarantee Corporation) provides insurance against the risk of non-payment by foreign buyers. It covers commercial risks like buyer insolvency and political risks like import restrictions or war. The premium is typically 0.5 to 1 percent of the invoice value. Banks also require ECGC cover before sanctioning pre-shipment and post-shipment export credit. Trade finance and ECGC advisory.
What is the Interest Equalisation Scheme?
The Interest Equalisation Scheme (IES) provides an interest subsidy of 2 to 5 percent on pre-shipment and post-shipment rupee export credit to MSME exporters and manufacturers. It covers 410 tariff lines and all MSME manufacturer exporters. The scheme has been extended multiple times and is currently active. Interest Equalisation Scheme details.
Can I export through e-commerce platforms like Amazon or eBay?
Yes. The Foreign Trade Policy has specific provisions for e-commerce exports. Consignments valued up to Rs 5 lakh can be cleared via simplified customs procedures. You still need IEC registration, GST, and must file Shipping Bills. Payment is received through authorized payment gateways. E-commerce export setup service.
What is the RoSCTL scheme?
RoSCTL (Rebate of State and Central Taxes and Levies) applies specifically to apparel and made-up textile exports. It rebates state-level taxes like electricity duty, stamp duty, and embedded SGST that are not covered by RoDTEP. Textiles exporters can claim both RoSCTL and RoDTEP on the same shipment. RoSCTL scheme details.
How long does customs clearance take in India?
For exports, standard clearance at air cargo takes 1 to 2 days; sea cargo takes 2 to 4 days. Delays happen due to Let Export Order holds, incomplete documentation, or customs examination orders. First-time exporters face longer processing as their track record builds. AEO-certified entities get priority clearance and reduced inspection rates.
What is the Registered Exporter System (REX)?
REX is an EU certification system that allows registered exporters to self-certify the origin of their goods for preferential tariff access under EU GSP. Indian exporters exporting to the EU must register with the REX system to issue Statements on Origin for consignments above EUR 6,000. REX service page.
What are the penalties for not fulfilling EPCG export obligation?
If you fail to meet the export obligation within the stipulated period, you must pay back the duty saved plus interest at 15 percent per annum from the date of import. DGFT can also blacklist the IEC for future authorisations. Partial fulfillment attracts proportionate duty payment on the shortfall. Applying for EO extension early is always better than defaulting.
How do I calculate my export incentive benefit?
Use the HS code of your product to look up the applicable RoDTEP rate (available on the DGFT portal). Multiply your FOB export value by the RoDTEP percentage to get the scrip value. For Duty Drawback, use the CBIC drawback schedule. Rasp International provides free initial assessments of your total incentive eligibility.
What is the difference between FOB and CIF pricing?
FOB (Free On Board) means the seller delivers goods to the port and covers all costs up to loading on the vessel. CIF (Cost Insurance Freight) means the seller also pays for ocean freight and marine insurance to the destination port. Most Indian export incentives including RoDTEP are calculated on FOB value. Your pricing choice affects your total landed cost competitiveness.
How do I check if my product is restricted or prohibited for export?
Check Schedule 2 of the ITC HS Classification on the DGFT portal. Products are classified as Free, Restricted, or Prohibited. Restricted items need an export license from DGFT. Prohibited items cannot be exported at all. Some products like certain chemicals and dual-use items require end-user certificates.
What support does DGFT offer to first-time exporters?
DGFT runs the Niryat Bandhu scheme which provides mentorship, training sessions, and handholding to new exporters. Regional DGFT offices also conduct regular awareness workshops. Additionally, FIEO and sector-specific EPCs offer training programs, buyer-seller meets, and participation support for international trade fairs.
Why should I hire an EXIM consultant instead of doing it myself?
DGFT procedures change frequently, with multiple notifications issued every month. Missing a single declaration on your Shipping Bill can cost you lakhs in incentives. Filing errors on EPCG or Advance Authorisation can lead to penalty proceedings. An experienced consultant like Rasp International ensures zero filing errors, maximum incentive capture, and saves you the time of tracking 50+ regulatory changes per quarter. DGFT consulting services.