{"id":20314,"date":"2020-11-26T12:38:55","date_gmt":"2020-11-26T07:08:55","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=20314"},"modified":"2020-11-26T12:57:06","modified_gmt":"2020-11-26T07:27:06","slug":"prohibited-and-exempted-items-under-iec","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/prohibited-and-exempted-items-under-iec\/","title":{"rendered":"An Overview on Prohibited Items and Exempted Categories under IEC"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Import-export License empowers the business owner to conduct the activities of international trading. In the absence of <a href=\"https:\/\/corpbiz.io\/iec-registration\"><strong>IEC license<\/strong><\/a>, the business owners cannot avail of the benefits of export schemes and nor they can obtain payment from the overseas location.<\/p>\n\n\n\n<p>Moreover, without IEC the cross-border transaction of goods is prohibited as customs and other authorities need to clear the shipment from the port. The IEC (Import-Export License) is issued as a 10 digit code.\u00a0In this write-up, you will come across Prohibited and Exempted items under IEC. It is of utmost importance to understand this topic before getting into the business of global trading. Before you laid eyes on the core topic, have a look on the latest update:<\/p>\n\n\n\n<p>\u201cOn 1st September 2020, the government of India capped export incentives as per the MEIS scheme at two crores per exporter on outbound shipments executed during the period from Sep 1 to Dec 31, 2020. Moreover, the government also added that any exporter with an IEC code who doesn&#8217;t send any shipment for the period of 1 year preceding Sep 1, 2020, or any IECs availed on or after the release of this notification shall not be able to reap benefits under this scheme.\u201d<\/p>\n\n\n\n<p>Now let&#8217;s move ahead to our core topic i.e. Prohibited and Exempted items under IEC. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/prohibited-and-exempted-items-under-iec\/#Issuance_Authority_of_IEC_Code_Director_General_Foreign_Trade\" >Issuance Authority of IEC Code: Director General Foreign\nTrade<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/prohibited-and-exempted-items-under-iec\/#What_are_the_Exempted_Categories_under_IEC\" >What are the Exempted Categories under IEC?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/prohibited-and-exempted-items-under-iec\/#Export_of_RestrictedProhibitedState_Trading_Enterprise\" >Export of Restricted\/Prohibited\/State Trading Enterprise<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/prohibited-and-exempted-items-under-iec\/#What_is_the_List_of_Import_and_Export_Requirement\" >What is the List of Import and Export Requirement?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/prohibited-and-exempted-items-under-iec\/#What_are_the_Regulatory_Authority_for_Global_Trading\" >What are the Regulatory Authority for Global Trading?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/prohibited-and-exempted-items-under-iec\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Issuance_Authority_of_IEC_Code_Director_General_Foreign_Trade\"><\/span>Issuance Authority of IEC Code: Director General Foreign\nTrade<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>IEC\u00a0<strong>Import-Export License<\/strong>\u00a0is granted by the DGFT i.e. of Director General Foreign Trade, Ministry of Commerce &amp; Industries, GoI.  As far as the validity is concerned, IEC is non-renewal in nature and serves lifetime services to the businesses. Henceforth, it is valid for all functional entities. The applicant cannot avail multiple IEC number against one PAN card.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Exempted_Categories_under_IEC\"><\/span>What are the Exempted Categories under IEC?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/What-are-the-Exempted-Categories-under-IEC-1024x768.png\" alt=\"Exempted Categories under IEC\" class=\"wp-image-20341\" width=\"517\" height=\"388\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/What-are-the-Exempted-Categories-under-IEC-1024x768.png 1024w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/What-are-the-Exempted-Categories-under-IEC-300x225.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/What-are-the-Exempted-Categories-under-IEC-768x576.png 768w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/What-are-the-Exempted-Categories-under-IEC.png 1200w\" sizes=\"(max-width: 517px) 100vw, 517px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Prohibited items under IEC<\/h3>\n\n\n\n<p>The\nRestricted items mentioned under ITC (HS) Indian Trade Clarification based on\nHarmonized System of Coding which can be imported only in the presence of an\nimport license. Such a license can be obtained from the relevant regional\nlicensing authority.&nbsp;<\/p>\n\n\n\n<p><strong>Form<\/strong>&nbsp;no. ANF2M is used for the import of\nrestricted items and it is available at the DGFT. Moreover, the importer has to\napproach Canalizing Agencies for importing canalized items like petroleum\nproducts from overseas locations. The items that come under ITC (HS) are\nstrictly prohibited for import within the country.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Export_of_RestrictedProhibitedState_Trading_Enterprise\"><\/span>Export of Restricted\/Prohibited\/State Trading Enterprise<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To\nexport goods with prohibition, explicit permission would be need by the license\nholders. The exporter must take care of compliances to ensure the seamless\nmovement of the goods. Please note that the export of wild animals or animal\narticles is completely forbidden subjected to the norms laid down by the\nDGFT.&nbsp;&nbsp;<\/p>\n\n\n\n<p>Moreover,\ncertain items can be allowed for overseas delivery via state trading\nenterprises subjected to the provisions mentioned under the Export Import (EXIM)\npolicy.&nbsp;Grant of license for the\nexport of goods in the said categories is done by the DGFT which may consult\nthe representatives of Technical Authorities and Departments\/ Ministries\nconcern.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_List_of_Import_and_Export_Requirement\"><\/span>What is the List of Import and Export Requirement?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Obtaining\nIEC is the first and the foremost step that one has to be availed of before\ncommencing activities of import and export.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">For Exporter<\/h3>\n\n\n\n<p>Post shipment, the given documents are required to be furnished as given below:-\u00a0<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/What-is-the-List-of-Import-and-Export-Requirement-1024x768.png\" alt=\"List of Import and Export Requirement\" class=\"wp-image-20344\" width=\"583\" height=\"437\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/What-is-the-List-of-Import-and-Export-Requirement-1024x768.png 1024w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/What-is-the-List-of-Import-and-Export-Requirement-300x225.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/What-is-the-List-of-Import-and-Export-Requirement-768x576.png 768w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/What-is-the-List-of-Import-and-Export-Requirement.png 1200w\" sizes=\"(max-width: 583px) 100vw, 583px\" \/><\/figure><\/div>\n\n\n\n<p><strong>Certificate of Origin:<\/strong> The Certificate of origin is required by the customs.\nThe exporters are required to get registered under the Indian Chamber of\nCommerce (ICC). Other documents include refund form\/GST return; Bank\nrealization Certificate, Exchange control Declaration, Registration cum\nMembership Certificate (RCMC) for reaping export benefits.&nbsp;<\/p>\n\n\n\n<p><strong>Bill of lading:<\/strong> The bill of lading acts as a receipt for the cargo services and is used to move the\u00a0freight shipment. It encloses all the detail required to process the cargo shipment.\u00a0The BOL represents the legal contract between the shipper &amp; a freight carrier.<\/p>\n\n\n\n<p><em><strong>Proforma Invoice:<\/strong><\/em><em>&nbsp;<\/em>A&nbsp;<strong>proforma\ninvoice is recognized as a&nbsp;preliminary<\/strong>&nbsp;<strong>bill<\/strong>&nbsp;of sale which\nis sent to the buyer for the delivery of goods. The invoice exhibits the\npurchased items and other essential detail like transport charges and shipping\nweight.<\/p>\n\n\n\n<p><strong>Packing list:<\/strong> An export packing list is a document that encloses detail regarding products and packaging related to each shipment. Shippers are required to generate a clear and detailed packing list for the parties involved in the supply chain. Thus; a packing list is required for all\u00a0air freight &amp; sea freight shipments.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_Regulatory_Authority_for_Global_Trading\"><\/span>What are the Regulatory Authority for Global Trading?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Foreign\ntrade (Development and Regulation) Act, 1992 is accountable for regulating the\nimport and export activities within the country. The international trade policy\n2015 has underpinned some provision subjected to imports and exports in\nIndia.&nbsp;<\/p>\n\n\n\n<ul><li>The import activities are undertaken as per section 11 of the customs Act, Foreign Trade (Development and Regulation) Act as well as Foreign Trade Policy 2015-20.\u00a0<\/li><li>Certain forbidden item seeks special approval and licenses from <strong>government &amp; DGFT<\/strong><sup><a href=\"https:\/\/www.dgft.gov.in\/CP\/\"><strong>[1]<\/strong><\/a><\/sup>.\u00a0Further, identification needs under ITC (HS), aka Indian Trading Classification based on a harmonized system is essential to ascertain the regulations for those goods.\u00a0<\/li><li>Applicable duties include safeguarding duty, IGST, social welfare surcharge, anti-dumping, and Customs duty.\u00a0<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>One\nhas to ensure the conformity with Import<strong>&nbsp;and\nExport procedure<\/strong>&nbsp;without any deviation for the seamless\ntrading of the goods. In addition to that, elaborate directions have been\nunderpinned by authority related to act and non-compliance to avert\ncomplications.&nbsp;<\/p>\n\n\n\n<p>Head over to the <a href=\"https:\/\/corpbiz.io\/\"><strong>CorpBiz<\/strong><\/a> expert if you would like to get more information on the Prohibited and Exempted items under IEC. The professional can also help you getting government license and certification with precise technical guidance and hassle-free paperwork. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/advantages-of-iec-registration-in-india\/\">Advantages of Obtaining IEC (Import Export Code) Registration in India\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Import-export License empowers the business owner to conduct the activities of international trading. In the absence of IEC license, the business owners cannot avail of the benefits of export schemes and nor they can obtain payment from the overseas location. Moreover, without IEC the cross-border transaction of goods is prohibited as customs and other authorities [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":20335,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[165],"tags":[1250],"acf":{"service_id":"16"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":4857,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20314"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=20314"}],"version-history":[{"count":34,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20314\/revisions"}],"predecessor-version":[{"id":20357,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20314\/revisions\/20357"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/20335"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=20314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=20314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=20314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}