Key Registrations to Start an Import Export Business in India

Import export business presents promising opportunities for businessmen. However, at the same time, it requires multiple certifications, from import-export licenses to industry specific registrations. Commencing your international trade without obtaining these certifications can simply lead to potential legal obstructions. Let’s understand the key registrations to start an import export business in India that you need to obtain.

Different Licenses Required to Start an Import Export Business in India

Here are some of the key licenses to start an import export business in India that you shall obtain without fail for smooth conduct of business:

1. Import Export Code (IEC): IEC is the key identifier for a person engaged in the import export business. It is a 10-digit code and comes with lifetime validity, thus, no renewals are required. Import Export Code registration is mandatory for importers or exporters to clear their shipments from the customs authorities, sending or receiving money during international transactions or obtaining benefits under the schemes of the Directorate General of Foreign Trade (DGFT). As the IEC acts as an identifier for importers and exporters, there are no return filing compliances associated with the IEC.
2. Legal Metrology: In case you are engaged in the import or export of weights and measures, you need to obtain the LMPC Certificate. Without obtaining the license, one is prohibited from importing and exporting weights and measures. The application for legal metrology registration should be filed with the Director, Department of Legal Metrology, ensuring that the weights and measures conform to the standards set by the government.
3. Extended Producer Responsibility (EPR): The EPR provisions place the responsibility of the end-of-life cycle goods on the producers, importers and brand owners (PIBOs). Thus, if you are importing goods that fall under the EPR regulations, you need to mandatorily obtain EPR Registration and satisfy the regulatory requirements. These places the responsibility of collection, transportation, disposition and recycling of e-waste, plastic waste etc. in an environmentally friendly manner on the PIBOs.
4. Bureau of Indian Standards (BIS): All the goods manufactured and imported into India need to conform to the standards as laid down by the Bureau of Indian Standards (BIS). This ensures the best interest of the consumers and acts as a safety and quality assurance mechanism. Products that are imported into India need to have the BIS certification. This ensures that the product is reliable and of good quality. BIS also helps gain the trust of the customers and gives a competitive advantage over the competitors. BIS registration by the importers can be availed of either as BIS FMCS (Foreign Manufacturer Certification Scheme) or BIS CRS (Compulsory Registration Scheme).
5. Equipment Type Approval (ETA): ETA is the certification requirement that pertains to the approval of wireless and telecommunications equipment before they can be sold, used or imported into India. This shall be equally applicable to medical devices. To obtain ETA approval, an application shall be filed with the Wireless Planning & Coordination (WPC) department. Once all the documents and information are verified, the WPC department will issue the WPC certificate in the form of an ETA license. Other licenses include a Dealer Possession License, a Non-Dealer Possession License or an import license for radio gadgets.
6. CDSCO: The Central Drugs Standard Control Organisation (CDSCO) acts as the regulatory authority in the pharmaceutical industry. Import and export of pharma products require you to obtain CDSCO Registration. For the import or export of products, the license shall be granted in Form 10 of the Drugs and Cosmetics Rules, 1945. Further, the imported pharmaceuticals and drugs should be registered with CDSCO under Form 41. The imported products shall comply with the GMP standards laid down by the CDSCO.
7. Bureau of Energy Efficiency (BEE): The Bureau of Energy Efficiency is a regulatory body established under the Ministry of Power and is responsible for facilitating and promoting energy efficiency initiatives. Manufacturers, traders and importers are required to obtain BEE certification in order to commence their business operations in India. As an importer importing any product falling under the BEE certification requirements, obtaining a BEE license not only ensures you stay legally compliant but also enhances your brand value for providing quality and energy-efficient products.
8. FSSAI Registration: Food Safety and Standard Authority of India (FSSAI) is the regulatory authority for the food industry of India. All the standard and licensing requirements pertaining to the food industry fall under the ambit of FSSAI. If you are importing food products, you are mandatorily required to obtain an FSSAI license to avoid ill practices and ensure that sub-standard food products do not enter the Indian market. After you file an online application, the FSSAI authorities will conduct an inspection following which, they will decide on the approval or rejection thereof.
9. Authorised Economic Operator (AEO): An Authorised Economic Operator is a certified company or business that is compliant with the supply chain standards. AEO is basically a three-tier certification i.e., AEO-T1, AEO-T2 and AEO-T3 that is applicable for importers and exporters. Economic operators other than importers and exporters can apply for the AEO-LO certification. This includes logistic service providers, terminal operators, custodians, warehouse operators, customs brokers etc. AEO certification enhances the reputation of the applicant as it acts as a validation for compliance with international supply chain standards.
10. SCOMET License: SCOMET stands for Special Chemicals, Organisms, Materials, Equipment’s and Technologies that can be used for both military and civilian applications. The export of SCOMET items are regulated by the Foreign Trade Policy and a license from the Directorate General of Foreign Trade shall be obtained. However, in case of export of nuclear materials, technology and equipment, the licensing authority shall be the Department of Atomic Energy. The SCOMET license for export shall be valid for a period of 24 months that can be further extended.
11. Special Valuation Branch: A SVB in Cusotms is a dedicated unit of the Customs Department that investigates the valuation of imported goods from related parties. Relationship between the importer and the foreign supplier can lead to manipulation of the transaction price causing direct loss to the exchequer. SVB investigation gets triggered at the point of import of goods. While filing the Bill of Entry for customs clearance, the importer needs to declare whether such importer and the foreign supplier are related or not. Even in the case of a transaction with an unrelated party, the SVB investigation can be triggered if excess payments are being made by the importer to the foreign supplier.
12. AERB Registration: The Atomic Energy Regulatory Board (AERB) regulates the use of nuclear energy and ionizing radiation to mitigate any risk to the environment and public health. AERB license is mandatory for operating any medical diagnostic X-ray equipment. It is also a statutory obligation as per the Atomic Energy (Radiation Protection) Rules, 2004. The requirements are placed for X-ray equipment, including but not limited to radiography, fluoroscopy, Cath Lab, CT, mammography, O-arm, BMD etc.

How Exim Advisors Can Help?

Exim Advisory is an esteemed professional organisation specialising in the import-export licensing and international trade sectors. Here’s how the Exim Advisors assist you in getting key licenses to start import export business in India:

• Identifying the key import export registrations and certifications, including sectoral registrations applicable for your business depending upon your area of operations
• Gathering documents and information and filing an application for registration
• Liaising with the departmental authorities for any clarification and queries
• Ensuring timely and accurate post-registration compliances
• Timely renewal of registrations and certifications to ensure uninterrupted business operations