Discuss the formalities involved in getting an export license.
An export firm needs to have the Import and Export Code (IEC) number as it needs to be filled in various export import documents. For obtaining the IEC number, firm has to apply to Director General for Foreign Trade (DGFT) with documents such export / import profile, bank receipt for requisite fee, certificate from the banker on the form, two copies of photographs attested by banker, details of the non-resident interest and declaration about application's non-association with a caution listed firms. Besides, it is obligatory for every exporter to get registered with the appropriate export promotion council and obtain a Registration Cum Membership Certificate (RCMC) for availing benefits available to export firms from the government. In addition to this, registration with Export Credit and Guarantee Corporation (ECGC) is necessary in order to protect overseas payments from political and commercial risks.
After satisfying himself in all respects, the controller will issue the export license, indicating these in the name of the importer’s country and the value of the goods to be exported.
A license is not necessary in the came of exports of all kinds of goods. The goods mentioned in open general license (O.G.L) can be exported freely during a given time. Certain goods, which are in short supply in our own country can be exported only after securing the necessary quota certificate from the government.
