Import-export questions and answers

A business entity with PAN, a current account with an authorised dealer (AD) bank, an IEC from DGFT, GST registration with an LUT, the RCMC from your export promotion council or board, and any product registration your goods need.Source: DGFT — online services

Yes. A proprietorship (an individual trading in their own name) can get an IEC on its PAN. A company or LLP is not required.Source: DGFT — online services

Only on the DGFT website, dgft.gov.in. DGFT has warned about look-alike sites that charge for IEC. Check the current fee on the DGFT portal.Source: DGFT — online services

Yes. IEC details must be updated online on the DGFT portal every year, even if nothing changed. An IEC not updated can be deactivated.Source: DGFT — online services

A Registration-cum-Membership Certificate from the export promotion council or commodity board for your product. You need it to claim most FTP benefits and to join council activities such as buyer-seller meets.Source: DGFT — online services

Search the ITC(HS) schedules on the DGFT site or the customs tariff on CBIC. Use the 8-digit Indian code on your shipping bill. If unsure, ask your customs broker and keep the reasoning on file.Source: DGFT — online services

Check its HS code in Schedule 2 (export policy) of ITC(HS) on DGFT. It will say free, restricted (licence needed), prohibited, or free subject to conditions such as registration or a minimum price.Source: DGFT — online services

Scheduled agricultural and processed foods need RCMC from APEDA. Food businesses also need an FSSAI licence. Some products (marine, spices, tea, coffee) come under their own boards instead. Check the product page for your item.Source: APEDA

Yes. A merchant exporter buys from manufacturers or farmers and exports in its own name. Keep purchase invoices; you may need them for origin certificates and refunds.

Commercial invoice, packing list, shipping bill (filed on ICEGATE) and the transport document — bill of lading for sea or air waybill for air. Many shipments also need a certificate of origin and product certificates.Source: ICEGATE

Apply online on the Common Digital Platform for Certificate of Origin at trade.gov.in. The platform routes it to the agency authorised for that agreement or type.Source: trade.gov.in

Plant Quarantine stations under the Directorate of Plant Protection, Quarantine & Storage. Apply on the PQMS portal and book inspection before stuffing.Source: PQMS

Let Export Order — customs' permission on the shipping bill to load the goods. The LEO date is treated as the date of export for many purposes, including incentives.Source: ICEGATE

Almost always because of a discrepancy: a date after the latest shipment date, a description different from the LC, a missing document or late presentation. Let your bank check documents before presentation.Source: DGFT — Beginners guide to Trade Finance

FOB keeps you responsible only up to loading in India, which is simpler for a beginner. CIF wins buyers who do not want to arrange freight, but you must price freight and insurance correctly. For containers, FCA and CIP are the ICC-recommended equivalents.Source: ICC — Incoterms 2020

A customs broker licensed by CBIC files your shipping bill, handles customs examination, and coordinates with the CFS, ICD and port until LEO. Most first-time exporters use one.Source: CBIC

Use an inland container depot (ICD) near you. Customs clearance is done at the ICD and the sealed container moves by rail or road to the port.

No per-consignment value limit from 1 April 2026 (DGFT Notification 67/2025-26 amending FTP Para 9.05). Earlier the cap was ₹10 lakh. Item-wise export policy still applies.Source: FTP 2023, Chapter 9 (DGFT)

Demurrage is charged for a container or cargo staying too long at the port or terminal. Detention is charged for keeping the shipping line's container outside the terminal too long. Both are daily charges — plan stuffing and pick-up dates.

From 1 October 2026, nine months from the date of shipment for goods, and twelve months for exports invoiced or settled in rupees (RBI FEMA 23(R)/2026-RB as amended by FEMA 23(R)/(1)/2026-RB, 22 September 2026). For earlier shipments, confirm the applicable period with your AD bank.Source: RBI — FEM (Export and Import of Goods and Services) Regulations, 2026 (as amended 22 Sep 2026)

Full or part advance, or an LC at sight from a sound bank received through your own bank. Avoid DA and open account with new buyers unless you have ECGC cover.

The electronic Bank Realisation Certificate, generated on the DGFT e-BRC system from data your bank reports when export money arrives. Give your bank the shipping bill number with each payment.Source: DGFT — e-BRC

Exports are zero-rated. Either export under a Letter of Undertaking (LUT) without paying IGST and claim refund of input tax credit, or pay IGST and claim it back. Most small exporters use the LUT route.Source: CBIC

ECGC insures you against the buyer not paying because of insolvency, default or political events, and can check a buyer before you ship on credit. Banks can also take ECGC cover on export loans.Source: ECGC Ltd

Remission of Duties and Taxes on Export Products — a refund of embedded taxes not otherwise refunded, given as a percentage of FOB value for notified HS codes. Claim it on the shipping bill. Rates and the scheme's validity are set by DGFT notification; check the current status on dgft.gov.in.Source: DGFT — online services

A refund of customs and certain other duties paid on inputs used in export goods, at All Industry Rates notified by CBIC or at a brand rate fixed for you. Claim it on the shipping bill.Source: CBIC

They cover different taxes, and many products can claim both, but some combinations (for example with advance authorisation or certain zones) are excluded. Check the current RoDTEP notification for your case.Source: DGFT — online services

Yes, for commercial imports, except the categories DGFT exempts (such as personal imports). The IEC goes on your bill of entry.Source: DGFT — online services

Usually Basic Customs Duty (BCD), Social Welfare Surcharge (SWS) on that duty, and IGST on the value plus duties. Some goods attract other duties. Check the rate for your HS code in the CBIC tariff.Source: CBIC

Yes, as input tax credit, if you are GST-registered and the goods are for business use. The bill of entry is the supporting document.Source: CBIC