In India, an export license is a document issued by the Directorate General of Foreign Trade (DGFT) that authorizes the export of specific goods, particularly those classified as “restricted” under the Indian Trade Classification (ITC) system
Purpose:
An export license is a formal permission granted by the government to allow businesses to export certain goods from India.
Necessity:
If a product falls under the restricted category of ITC (Indian Trade Classification), then an exporter requires an export license.
Authority:
The Directorate General of Foreign Trade (DGFT) is the authority responsible for issuing export licenses in India.
Examples of goods requiring licenses:
Some items that typically need an Export License are live birds and animals, endangered species of plants and animals, sandalwood, sand and soil, Scrap, silkworm and silk cocoons, etc.
ITC-HS Code:
Schedule II of the ITC-HS code provides the rules and regulations related to export policies.
Foreign Trade Policy:
The Foreign Trade Policy (FTP) generally allows free export of goods, but some items need a license.
Benefits of having an export license:
- Access to export promotion programs.
- Enjoy duty refunds.
- Enhanced competitiveness in the global market.
Process of application and documentation for an Export License
Procedure while applying to the DGFT
- The online application process can be made on the DGFT website.
- On the homepage, the applicant will have to go to the ‘Services’ section, where under the ‘Online ECOM Application’ section, they will have to select ‘Restricted Item Import License/Restricted Export Item’.
- The application has to be filed online, and a copy of the application has to be mailed to export-dgft@nic.in (in PDF format).
- ‘Profile of Exporter and Importer’ in ANF-1 form and application form for the Export License of restricted items in ANF-2N form.
- Copy of purchase order/import order from the foreign purchaser, or a contract agreement between the two.
- Proof of online payment of the application fee.
- Copy of PAN Card
- Copy of Identity Proof
- Address Proof
- Bank Certificate / Canceled Cheque
- NOC – in case of rental property
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