Question 1

What is the difference between import and export?

Accepted Answer

Importing means bringing goods into your country from abroad, while exporting means sending goods out of your country to a foreign buyer. Both require customs declarations, duties, and licensing compliance.

Question 2

What is an IEC (Importer Exporter Code) and do I need one?

Accepted Answer

An IEC is a mandatory 10-digit number issued by DGFT for anyone importing or exporting goods from India. Without a valid IEC, customs will not allow clearance of your shipment.

Question 3

What is the customs clearance process in India?

Accepted Answer

Customs clearance involves filing a Bill of Entry on ICEGATE, duty assessment, payment, examination if selected, and release order. Most clearances are processed electronically under the SWIFT system.

Question 4

What documents are required for importing goods into India?

Accepted Answer

Key documents include Bill of Entry, Commercial Invoice, Packing List, Bill of Lading or Airway Bill, Certificate of Origin, Import License (if applicable), and product-specific certificates.

Question 5

How are import duties calculated in India?

Accepted Answer

Import duty is calculated on CIF value (Cost + Insurance + Freight). Total taxes include Basic Customs Duty, Social Welfare Surcharge, IGST, and in some cases AIDC.

Question 6

What is an HS Code and how do I find the right one?

Accepted Answer

An HS Code is an internationally standardized numerical classification for traded goods. In India, an 8-digit ITC-HS code is used. You can search the correct code on the DGFT trade portal.

Question 7

What is GST on imports and how does it work?

Accepted Answer

IGST is levied on all imports into India at the same rate as domestic supply. Importers registered under GST can claim Input Tax Credit (ITC) of IGST paid on imports.

Question 8

What is Incoterms and why does it matter?

Accepted Answer

Incoterms are globally recognized trade terms defining who is responsible for costs, risk, and insurance at each stage of shipment. Common terms include EXW, FOB, CIF, and DDP.

Question 9

What is the Foreign Trade Policy (FTP)?

Accepted Answer

India's FTP 2023, released by DGFT, governs all import and export activity and introduces schemes like Advance Authorization, EPCG, and RoDTEP for exporters.

Question 10

What are the export promotion schemes available in India?

Accepted Answer

India offers RoDTEP, Advance Authorization, EPCG, SEZ, and EOU schemes. ECGC also provides export credit insurance to protect against buyer default.

Frequently Asked Questions

Trade Basics

Customs Clearance

Required Documents

Duties & Taxes

Logistics & Shipping

India-Specific Regulations

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