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 Forums Index>> International Trade - Basics >> Formalities of Registration for Export Units

Tradeindia Editor
(Tradeindia Expert)
New Delhi, India
TOPIC : Formalities of Registration for Export Units

No additional registration formalities are required for a domestic unit if it wants to enter exports. A new export unit can be started as a proprietorship concern, a partnership concern or as a company with limited liability and the formalities remain the same as for domestic units.

Every individual, firm or a company seeking to export or import is required to obtain a code number, called Import Export Code (IEC) number, from the office of Regional licensing authority of DGFT. This number is required for communication with any office related to export and import.

RCMC means the certificate of registration and membership granted by an
Export Promotion Council/ Commodity Board/ Development Authority or other competent authority as prescribed by Foreign Trade Policy to an exporting unit.

Any person, applying for (i) a licence/ authorisation/ certificate/permission to import/ export, or (ii) any other benefit or concession under Foreign Trade Policy is required to furnish Registration-cum-Membership Certificate (RCMC). RCMC is also required for executing a bond before Central Excise authorities, which exempts exporters to furnish bank guarantees.

Export Promotion Councils have been set up by various ministries of the Central Government to promote and develop the exports of particular group of products, projects and services. For certain group of products, which are sensitive from the viewpoint of national consumption, there are commodity boards instead. Thus while we have export promotion councils for apparel, leather, software, chemicals, engineering goods etc., we have commodity boards for tea, coffee, jute etc.

Goods exported from India are exempt from central and state sales tax. However, for getting exemption of such taxes or claming their refund, wherever permissible under Foreign Trade Policy, the exporting unit should be registered with sales tax authorities.

If the exporting unit is engaged in manufacture of the product, it needs registration with excise department and the formalities remain the same as for any domestic unit. This registration is required for claiming refund of excise duties under various schemes of the government.

Posted on 16 September 2007 at 17:57:00 [Message #701]
Handy Craftz LLC-handycraftz

Mr. Ashish Kumar Sood
Handy Craftz LLC
Deira, United Arab Emirates
Free Member
Joined :02/02/2007
No of Topics Posted : 0
Reply/Comments : 1
Re: Formalities of Registration for Export Units

Does one need to pay any security while registering with the sales tax authorities in New Delhi? Someone has a small export order to USA for around $3000 for Christmas decorations and is starting a new business as a proprietor in New Delhi. He is procuring the IEC and RCMC. If yes? How much will he have to pay?



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