Export License

Here's a breakdown of export licenses in India, covering their purpose, requirements, and the process of obtaining them

Purpose of an Export License

  • An export license is a crucial document that grants permission to export specific goods from India to other countries. It allows the government to monitor the flow of goods and ensures compliance with trade regulations. The Directorate General of Foreign Trade (DGFT) issues these licenses.

Types of Export Licenses
  • The primary purpose of an export license is to regulate international trade and ensure that goods leaving the country comply with the law. It enables the government to monitor the quantity and destination of exported goods, aiding in efficient trade regulation. Furthermore, an export license can qualify businesses for various benefits, such as duty drawbacks, access to export promotion programs, and a competitive edge in the global market.

Goods Requiring an Export License
  • Individual dual-use licenses: Required for items related to national security, foreign policy, and other sensitive areas.
  • Open General Export License (OGEL): Launched by the Ministry of Defense for defense exports of specific components to certain countries.
  • Brokering activities licenses: Needed for activities involving the negotiation or arrangement of transactions that may involve the transfer of military goods.
  • While most goods are freely exportable, certain items fall under the "restricted" category and require an export license. These include:

  • Frozen silver pomfrets
  • Cashew seeds and plants
  • Seeds of all forestry species
  • Rice bran
  • Chemicals
  • Vintage motorcycles, parts, and components
  • Artworks, antiques, and culturally significant goods
To obtain an export license, exporters typically need to provide the following documents:


How to Apply for an Export License

  • Profile of exporter and importer in ANF-1 form
  • Application form for export license of restricted items in ANF-2N form
  • Copy of purchase orders or import orders or a contract agreement
  • Application fee receipt
  • PAN card
  • Identity and address proof
  • Bank certificate
  • Open the DGFT website and go to the Online ECOM Application section under services.
  • Select ‘Restricted Item Import License or Restricted Export Item’.
  • Fill the application online and add all the required details.
  • Mail a copy of the application to export-dgft@nic.in in a PDF format and attach mandatory documents.
Additional Information
  • The application is processed by the export cell, and after screening, the exporter receives a deficiency letter in three working days. After submitting required documents or information, the EXIM facilitation committee (EFC) reviews the application and sends an authorization letter to the exporter. The exporter must then approach the jurisdictional regional authority (RA) of the DGFT with a copy of the permission letter, application, and the supporting documents. The RA then issues the export license.

  • Import Export Code (IEC): Before applying for an export license, you must obtain an Import Export Code (IEC) from the DGFT. This is a 10-digit code required for all import/export activities.
  • Product Classification: Determine the correct classification of your product using the Indian Trade Classification (ITC-HS) code.
  • Government Support: Exporters can access government support schemes, including financial assistance and expert guidance.
  • Ease of Doing Business: The government has streamlined processes to reduce the number of required documents.
In summary, the export license is a crucial requirement for exporting goods in the restricted category from India. The process involves obtaining the necessary documents, applying through the DGFT portal, and adhering to the guidelines set by the government. The Foreign Trade Policy (FTP) considers all goods as freely exportable except those that are restricted or prohibited, for which the exporter needs the export license for exporting or importing.
  • Bank certificate.
  • Bank account statement for the last two months.
  • Cancelled cheque.
  • Proof of ownership of the business premises.
  • List of products to be exported.
  • Certificate of Incorporation/Partnership deed.
  • Copy of PAN card.
  • Test reports from a recognized laboratory (may be required).
  • Health certificate from the concerned authority (may be required).
  • Board resolution for authorization (may be required).
  • Fee payment receipt.
  • Visit the APEDA website and register as a member.
  • Fill out the application form with complete details.
  • Attach all the required documents.
  • Submit the application form along with the documents.
  • Pay the required fee.
  • Await confirmation and approval of the license from APEDA.

Validity and Renewal

The registration fee is INR 5000, excluding taxes. The RCMC is typically valid for five years.

Cancellation of APEDA Registration

The APEDA registration (RCMC) is valid for five years. Businesses must apply for renewal before the expiry date to continue enjoying the benefits of APEDA registration.

APEDA registration is mandatory for exporting scheduled products, and it provides access to financial assistance schemes, brand promotion, guidelines, and training programs. It also enhances the credibility of exporters in the international market.

Benefits of APEDA Registration

APEDA registration can be canceled under certain conditions, such as violating the provisions of the APEDA Act or regulations. Reasons for cancellation include failing to conduct export business for 12 consecutive months, providing false information, or failing to comply with APEDA rules and regulations.