Building an e-commerce export business from India is much easier today with the wide availability of the internet and platforms. However, it is important to be aware of the various documentation and licenses required to operate an export business. As you are sending goods from one country to another, it involves some amount of paperwork to complete this process. One such documentation requirement is the need for an export license.
An export license is issued by the Directorate General of Foreign Trade (DGFT) for the export of products listed in the restricted category of products. Here is all you need to know about an export license:
What is an Export License?
The Government of India has categorized various products that are exported from the country into various categories such as freely exportable, restricted and prohibited. The products are categorized as per the Indian Trade Classification (ITC). The ITC system is based on the Harmonized System of Nomenclature (HSN) codes that classify these products into various categories.
As the name suggests, the products under the prohibited category cannot be exported. For the restricted category, an exporter requires an export license to export these products from India to another country.
It is a good idea to check the product that you are trying to export falls under which category and obtain an Export license India, in case it is required. The license is issued by the DGFT after a careful review of the facts provided by the exporter about the transaction.
Purpose of an Export License
The export license is mainly required to allow the export of restricted products from India to another country. In case the HSN Code in the ITC is listed under the restricted category, an exporter needs to take the export license before exporting the products. The Schedule II of the ITC-HS Code explains the terms and conditions related to the export policy in India.
What documents are needed to take an Export License?
An exporter needs to submit some documents related to the business to take an export license. Here are the documents that are required to obtain an export license:
– Exporter and importer’s profile as per the format in form ANF-1
– Application form for an export license for restricted items as per the ANF-2N Form
– Copy of the agreement between importer and exporter along with the purchase order
– PAN Card
– Application fee receipt
– Address and identity proof
– Bank certificate
Application process for Export License
The application process for the export license is easy. Here are the steps you need to know to get an Export license India:
- Go to the Online ECOM Application section under services on the DGFT website
- Click ‘Restricted Item Import License or Restricted Export Item’
- Fill out the application form and submit the required details
- Mail a copy of the application to the email id (email@example.com) in PDF format along with the required documents
The application process for the export license is processed by the export cell of the DGFT. After the screening process is complete, the exporter gets the deficiency letter in three working days. After the application form is submitted along with all the required documents, the EXIM facilitation committee (EFC) reviews the application and sends the authorization letter to the exporter.
The exporter is then expected to get in touch with the regional authority (RA) of the DGFT with the permission letter, application form and supporting documents. The RA issues the export license after all formalities are completed.
Which goods need an Export License?
Products like frozen silver pomfrets, chemicals, vintage motorcycles, parts and components seeds of all forestry species, rice bran, cashew seeds and plants, and artworks, antiques and culturally significant goods require an export license.
Exporters are expected to understand which department has authority for a specific export item and get the export license accordingly. If the product is part of the restricted category, the exporter would require an export license. The foreign trade policy (FTP) from the Government of India treats all products are freely exportable unless it is part of the restricted or prohibited category.
Once the exporter has been able to secure the export license, you can export the restricted products without much hassle.
E-commerce exports with Amazon Global Selling
Whether or not the products you are exporting are part of the restricted category, Amazon Global Selling can help you with the e-commerce export journey. The program is designed in a way that it helps individual Indian exporter to meet all the documentary requirements and sell internationally using Amazon marketplaces. You can target over 300 million global Amazon consumers and build an e-commerce export business with Amazon Global Selling.