Q&A – Conventus Law Talks With Economic Laws Practice About FDI In India. Part 3

21 December, 2021

 

 

1 – Are businesses subject to specific compliance requirements for undertaking import and export?

The compliance requirements for undertaking import and export transactions may vary on a case-to-case basis. Apart from regular compliances such as obtaining Importer Exporter Code (‘IEC’), Goods and Services Tax (‘GST’) registration, ICEGATE registration, it is also essential to consider the following in case of import or export of goods sold into/from India:

Import license as per the Indian Tariff Classification (Harmonised System) (‘ITC(HS)’) Import Policy

Import of goods into India are generally classified as ‘free’, ‘restricted’ or ‘prohibited’ as per the ITC(HS) Import Policy. In cases where imports are classified as ‘restricted’, an authorisation/license or permission is required.

Bureau of Indian Standards (‘BIS’) registration

In order to import certain specified goods into India it is mandatory to conform to the specified Indian Standard. Manufacturers of these goods (even if located outside India with no presence in India) are required to apply for registration from BIS after getting their product tested from BIS recognized labs.

Extended Producer Responsibility Certificate under E-Waste Rules

Extended Producer Responsibility (‘EPR’) is the responsibility of every producer of certain specified electrical and electronic equipment (‘EEE’) to channelize e-waste to an authorised dismantler / recycler to ensure environmentally sound management of this waste. EPR authorisation is mandatory and has to be obtained by all importers subject to exceptions granted.

Legal Metrology License

 

Under Legal Metrology Act 2009, registration is required for importing packaged commodities which are meant for distribution or sale and for importing weights and measures.

Export license as per ITC(HS) Export Policy including SCOMET license

 

The Export Licensing Schedule lists out various goods and sets out the export policy regime applicable to certain goods. This is based on whether these goods are either prohibited / restricted / free to be exported.. This also covers the SCOMET list. The SCOMET list is a single, unified control list of all dual use items. This list (set out under Appendix 3 to Schedule 2 of India’s Export Policy) contains dual-use items and technologies classified in 8 Categories.

2 – What are the practical steps / broad checklist that importers and exporters should be aware of in light of the various import / export compliance requirements?

 

Please click here for the rest of the Q&A.