PROCEDURES FOR STARTING IMPORTS & EXPORTS

1. Preliminaries

Before one starts the export - import business, there are certain essential formalities one has to comply with. The following are the aspects one has to take for this purpose: -

Having a Bank account with an authorized dealer

Obtaining of Permanent Account Number (PAN)

Obtaining Import-Export Code Number (IEC No.)

Obtaining Business Identification Number (BIN)

Obtaining Membership of Export Promotion Council

Registration with Excise Dept.

•Obtaining Enrollment Number

Obtaining Identity Card

Appointing Clearing House Agent (CHA)

Opening a Bank Account Number: A person can have a bank account with any bank including a Co-operative Bank. However, one has to ensure that when the account is opened, the bank must be an Authorized Dealer for dealing in foreign exchange as per permission given by Reserve Bank of India. Normally Co-operative Banks are not authorized by RBI to deal in foreign exchange.

Permanent Account Number (PAN): The government has made it mandatory to quote the PANo. in all important transactions. Therefore, it is essential to obtain PAN before undertaking an export - import transaction. In order to obtain PAN, one has to file Form No. 49A with the Income Tax Department and obtain a PANo.

IEC Registration in Coimbatore (IEC No): An application is required to be made to the JT. Directorate General of Foreign Trade (Jt. DGFT) for this purpose.

We have Included the detailed procedure to obtain 1. E. Code No. by filing the Ayat Niryat Form in this book in a separate Part.

Business Identification Number (BIN): Once IEC No. has been allotted, BIN is automatically generated and intimated to the Custom Department by the licensing authority.

Membership of Export Promotion Council: The exporter - importer must become a member of the relevant export promotion council. This helps him in obtaining various export benefits / incentives under the Import-Export Policy. There are different EPCs for different industries (eg. Engineering Export Promotion Council (E.E.P.C.), Apparel Export Promotion Council (A.E.P.C.) etc.)

 Registration with Excise Department: If the exporter-importer is. entitled to excise duty exemptions under the EXIM Policy, he must register with the Excise Department.

Enrollment Number: In order to obtain various licences from the Licensing Authority, it is essential to have the enrollment number. It is issued by the Regional Licensing Authority, on application being made in this behalf.

Application for Identity Card to Regional Licensing Authority: Application must be made the prescribed format given in Appendix 4 under EXIM Policy to the Regional licensing' Authority. Application is generally made in the name of an employee of the firm / . company. This facilitates collection of documents, license, cheques, etc. from the Regional Licensing Authority http://www.companyregistrationincoimbatore.in.

Appointment of Clearing House Agent(CHA): The CHA assists in clearing export-import consignments with the Customs Department.