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Understanding Export Licenses and Regulations

An export license is required for certain goods and allows an exporter to transport products to foreign markets. The licensing agency reviews export transactions and licenses depend on the goods and destination. Exporters must determine what they are exporting, where to, who will receive it, and intended use. Certain goods like gold can only be imported by designated agencies. Exporters must classify items and apply to the licensing committee to receive a license for goods that require one. Goods not on the classified list can generally be exported without a license under certain terms.

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635 views1 page

Understanding Export Licenses and Regulations

An export license is required for certain goods and allows an exporter to transport products to foreign markets. The licensing agency reviews export transactions and licenses depend on the goods and destination. Exporters must determine what they are exporting, where to, who will receive it, and intended use. Certain goods like gold can only be imported by designated agencies. Exporters must classify items and apply to the licensing committee to receive a license for goods that require one. Goods not on the classified list can generally be exported without a license under certain terms.

Uploaded by

niteshnagpal1990
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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  • Export License

Export License.

Introduction

An export license is a document issued by the appropriate licensing agency after which
an exporter is allowed to transport his product in a foreign market. The license is only
issued after a careful review of the facts surrounding the given export transaction. Export
license depends on the nature of goods to be transported as well as the destination port.
So, being an exporter it is necessary to determine whether the product or good to be
exported requires an export license or not. While making the determination one must
consider the following necessary points:

• What are you exporting?


• Where are you exporting?
• Who will receive your item?
• What will your items will be used?

Canalisation

Canalisation is an important feature of Export License under which certain goods can be
imported only by designated agencies. For an example, an item like gold, in bulk, can be
imported only by specified banks like SBI and some foreign banks or designated
agencies.

Application for an Export License

To determine whether a license is needed to export a particular commercial product or


service, an exporter must first classify the item by identifying what is called ITC (HS)
Classifications. Export license are only issued for the goods mentioned in the Schedule 2
of ITC (HS) Classifications of Export and Import items. A proper application can be
submitted to the Director General of Foreign Trade (DGFT). The Export Licensing
Committee under the Chairmanship of Export Commissioner considers such applications
on merits for issue of export licenses.

Exports Free unless regulated

The Director General of Foreign Trade (DGFT) from time to time specifies through a
public notice according to which any goods, not included in the ITC (HS) Classifications
of Export and Import items may be exported without a license. Such terms and conditions
may include Minimum Export Price (MEP), registration with specified authorities,
quantitative ceilings and compliance with other laws, rules, regulations.

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