Govt. regulates import–export of products and services through provisions in Foreign Trade Policy. It controls the movement of items by levying custom duties and other taxes or by imposing restrictions on exports and imports of specific products/services.

Special Economic Zone (SEZ) is a specifically delineated duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations, duties and tariffs.

Domestic Tariff Area means the whole of India (including the territorial waters and continental shelf) but does not include the areas of the Special Economic Zones.

EOU or export-oriented units are business units established under special schemes to export entire production of goods and services (some sales are permissible under ‘Domestic Tariff Area’).

Bill of Entry can be filed at the time of clearing the goods and after presenting the Import General Manifest (IGM) to the customs officers. It can be categorised into the following types:

• Bill of Entry for Home Consumption: This bill is filed when the importer wants to clear the goods immediately by paying duty.
• Warehousing Bill of Entry or Into Bond Bill of Entry: This bill must be filed when the importer wants to keep the goods in a warehouse and does not want to pay duty immediately but prefers to pay the duty subsequently.

Ex-bond Bill of Entry: This bill must be filed when the importer wants to clear the warehoused goods for home consumption on payment of duty.

All goods import of which is permitted only with an authorisation/permission/licence can be checked in Indian Trade Classification (Harmonised System) Schedule 1. The schedule can be downloaded from dgft.gov.in and locating the product, its EXIM code and reading the relevant policy given against it as ‘Free’, restricted, prohibited or STE. For import of goods mentioned in Schedule 1 of ITC (HS) Classification of Export & Import 2012, an application for grant of an ‘Import Authorisation’ needs to be submitted to the concerned regional authority of DGFT in Aayaat Niryaat Form 2B(ANF 2B), along with documents prescribed therein, with two copies of the complete set to DGFT(HQ) at Udyog Bhawan, New Delhi.

Importer–Exporter Code (IEC) is a 10-digit alphanumeric code required by a person or company to import in or export goods from India. No foreign trade can be performed without obtaining an IEC number (Importers/exporters listed at Para 2.07 of the Handbook of Procedures Vol.1 by DGFT are exempted from obtaining an IEC).

IEC can be obtained from regional offices of DGFT. An application for electronic form (e-IEC) can be submitted online on the DGFT website: Link

Rules of origin (ROO) are the criteria needed to determine the country of origin of a product for purposes of international trade. Their importance is derived from the fact that duties and restrictions in several cases depend upon the source of imports. Rules of origin are used:

• to implement measures and instruments of commercial policy such as anti-dumping duties and safeguard measures;
• to determine whether imported products shall receive most-favoured-nation (MFN) treatment or preferential treatment;
• for the purpose of trade statistics;
• for the application of labelling and marking requirements; and
• for government procurement.

The export obligation under post export EPCG Scheme is equivalent to 85% of 6x the sum of applicable basic duty of customs, additional duty of customs, education cess and secondary and higher education cess paid on goods imported under the said authorisation on FOB basis.

The requirements are as follows:

• Apply to the Directorate General of Foreign Trade and obtain an IEC
• IEC must be indicated in documents filed with customs for clearance of the imported goods
• In case of 100% EOUs/EPZs, the IEC numbers are allocated by the ‘Development Commissioner’ of the concerned export processing zone

Every good imported shall be in conformity with Section 11 of the Customs Act 1962, Foreign Trade (Development & Regulation) Act 1992—read with the EXIM policy in force.

FTAs are arrangements between two or more countries or trading blocs that primarily agree to reduce or eliminate customs tariff and non-tariff barriers on substantial trade between them. FTAs normally cover trade in goods (such as agricultural or industrial products) or trade in services (such as banking, construction, and trading). FTAs also cover other areas such as intellectual property rights (IPRs), investment, government procurement and competition policy.

No, only one IEC is issued against a single Permanent Account Number (PAN). If any PAN card holder has more than one IEC, then the extra IECs is disabled.

Under the LOCs, export of capital goods, plant and machinery, industrial manufactures, consumer durables and any other items that are eligible for being exported under the 'Exim Policy' of the Government of India can be financed.

Duty credit scrip(s) issued under Post Export EPCG Scheme will be issued only in respect of basic customs duty, even when you are not availing CENVAT. Since the concession under Post Export EPCG is confined to basic customs duty, the export obligation shall be fixed with reference to basic customs duty paid by you. However, you will be required to furnish a certificate from central excise regarding not availing CENVAT credit. Such certificate from central excise regarding non-availing of CENVAT credit will not be required where the unit is not registered with central excise.

If all documents are in place, IEC number is normally issued within two to three days.

Yes, IEC number can be modified by applying the ANF 2A form.

Provisional assessment is required when an importer/exporter is unable to produce the necessary documents or information for assessment of duty on goods, or when the necessary documents are needed to produce but the customs officer may deem it necessary to conduct further enquiry for assessing the duty.

Project Imports are the imports of machinery, instruments, and apparatus etc., required for initial establishment of a unit or for substantial expansion of an existing unit. The exported goods are charged at a flat rate of duty under the same tariff heading. Project Imports assessment is a scheme of assessment, which is designed to help expeditious and easy assessment of variety of industrial goods falling under different chapters of the customs tariff.

Incentives under the Foreign Trade Policy can only be availed after registering as an EXIM unit. Following are the key steps to register as an EXIM unit:

• Incorporation of Company
• Opening of a current account
• Obtaining Import–Export Code/PAN
• Obtaining registration cum membership certificate
• Risk coverage policy

No. However, the name of each concern owned by such a company may be included in the IEC of the firm in whose name PAN exists, as a branch.

Yes, supply of ITA-1 items to Domestic Tariff Area (provided realisation is in free foreign exchange) is considered for meeting the export obligation under the EPCG Scheme.

After introduction of GST, PAN is essential for the IEC.