News

In India, do you want to launch an import business or scale your current one? If you want to excel in international trade, you must familiarize yourself on how to get an import license. Through this guide, we shall take you through the process, requirements and all the necessary details to obtain an import license in India.

Understanding Import Licenses in India

Before getting into the application process, you should know what your import license is, and when it’s needed. 1. Specific Import License in India: Not all products require a specific import license in India. Most items are classified under Open General License (OGL), indicating that they can be imported without restrictions. But some products that are restricted or prohibited will need a special import license from the Directorate General of Foreign Trade (DGFT).

Apply for an Importer Exporter Code (IEC)

Getting a valid Importer-Exporter Code (IEC) is the first and foremost step to start your import business. A unique 10-digit number, issued by the DGFT, is mandatory for every import and export activities in India.

Step1: Here’s how to get your IEC:

1. Go to the DGFT website and register yourself
2. Complete the Online Application Form (ANF 2A)
3. Listing Down Required Documents: PAN card, address proof and bank certificate
4. Pay the Application fee
5. Submit application and wait for processing
If all the documents are in place, the IEC is usually issued in 10-15 working days.

Step2: Register goods and services tax (GST)

Goods and Services Tax (GST) registration is required for goods imported into India. Without it, you cannot clear customs or reclaim input tax credits on your imports. To register for GST:

1. Go to the GST portal and apply for registration
2. Required information and documentation
3. Get your GSTIN (Goods and Services Tax Identification Number)

Step 3: Check if You Need a Special Import License

Ensure that the products you want to import are not restricted or prohibited. Check ITC-HS codes or contact a Customs broker to find out if you require a specific import license for your goods.
Now,

Step 4: Apply for the Import License (if required)

If your products need an import license
1. Log in to the DGFT website
2. Go to the section of “Online ECOM Application”
3. Click on the “Restricted Item Import License
4. Complete the application form (ANF 2M) with all relevant information
5. Upload required documents, including:
– IEC copy
– GST registration certificate
– PAN card
– Proof of address
– Bank certificate
– Purchase order or proforma invoice from the foreign supplier
6. And also pay the required license fee
7. Apply and check the status online
Import licenses are processed differently but generally takes 15-30 days.

Step 5: Prepare for Customs Clearance

1. You are in pretty good shape to start importing once you have your IEC, GST registration and import license (if required). But there are a few more considerations to bear in mind:
Understand the customs procedures and documentation needed

2. Hire an experienced customs broker to help you with clearance.

3. Make sure you have all the necessary documents, which should include:

– Bill of Entry

– Commercial Invoice

– Packing List

– Bill of Lading or Airway Bill

– Insurance Certificate

– Import License (if applicable)

4. Be prepared to pay applicable customs duties and taxes

Important Facts to Consider when Importing to India

1. Stay updated on import policies: Import rules can shift rapidly in India. Stay up to date on the new policies and changes.

2. Build relationships with suppliers: Make sure you are on good terms with foreign suppliers since this leads to better terms and smoother supply transactions.

3. Understand Incoterms: Familiarize yourself with international commercial terms to delineate start and end responsibilities in your import contracts.

4. Consider hiring a consultant: If you’re still unfamiliar with the regulations regarding imports, improve your business understanding by hiring an authentic and well-experienced import-export consultant to guide you in the import process.

5. Use technology: Import management software can help you run things smoothly and keep everything organized.

6. Become a member of trade associations: Joining relevant trade associations would help in networking along with industry insights.

Conclusion

It might appear difficult to obtain an import license in India but it really is a simple process if you have the correct information and preparation. If you follow the procedures specified in this guide while ensuring you are still with the regulations, you will be well on your way to start a thriving import business in India.

This is an ever-changing landscape, so make sure you understand the best way to do things and don’t find a surprise at the end. However, with the right diligence and attention to detail, you can navigate the complexities of international trade and unlock the vast possibilities that importing has to offer in the Indian market.