Question
Discuss the formalities involved in getting an export licence.

Answer

Export of goods in India is subject to custom laws which demand that the export firm must have an export licence before it proceeds with exports. Important pre-requisites for getting an export licence are as follows:
  • Opening a bank account in any bank authorised by the Reserve Bank of India (RBI) and getting an account number.
  • Obtaining Import Export Code (IEC) number from the Directorate General Foreign Trade (DGFT) or Regional Import Export Licensing Authority.
  • An export firm should get itself registered with the appropriate export promotion council, such as the Engineering Export Promotion Council (EEPC) and the Apparel Export Promotion Council (AEPC), and obtain a registration-cum-membership certificate (RCMC).
  • Registering with Export Credit and Guarantee Corporation (ECGC) in order to safeguard against risks of non payments.

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