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:
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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