Complete export regulatory bundle, not just the IEC

Category: Exports & Imports. From ₹4,999. Typical timeline: 10–15 days.

Overview

This service sets up the complete regulatory foundation an exporter needs before shipping goods or services out of India — obtaining the Import Export Code (IEC) from DGFT, registering with the relevant Export Promotion Council for benefits, and putting basic export documentation and GST/FEMA compliance processes in place. Kanoons handles the IEC application and the surrounding compliance setup together so a new exporter is not left discovering requirements shipment by shipment.

Who needs it

• A manufacturer or trader planning its first export shipment
• A service business invoicing overseas clients that needs IEC for banking and FEMA compliance
• An existing exporter wanting to register with an Export Promotion Council to access incentive schemes
• A business wanting its export documentation (invoice, packing list, shipping bill process) streamlined

Eligibility

• Any individual, proprietorship, partnership, LLP or company intending to export goods or services from India
• Businesses already exporting informally that need to formalise IEC and related registrations
• Service exporters (IT, consulting) who also need an IEC for FEMA/RBI purposes despite not shipping physical goods

Documents required

• PAN of the business/individual
• Business registration proof (incorporation certificate, partnership deed, GST certificate)
• Bank account details and a cancelled cheque/bank certificate
• Digital signature or Aadhaar e-sign for the DGFT application
• Address proof of the business premises

Process

1. IEC application — Application is filed on the DGFT portal with PAN, business and bank details, and is typically auto-approved within 1-2 working days.
2. GST LUT filing — A Letter of Undertaking is filed on the GST portal to enable zero-rated export invoicing without upfront IGST payment.
3. EPC registration — Registration with the relevant Export Promotion Council is completed to obtain the Registration-cum-Membership Certificate (RCMC), if the business wants to access incentive schemes.
4. Documentation setup — Standard export documentation templates (commercial invoice, packing list) and process flow are set up.
5. Compliance calendar — A calendar is set up covering annual FEMA/FLA return and GST LUT renewal so ongoing obligations are not missed.

Government fees

• IEC application fee (DGFT): ₹500
• GST LUT filing: Nil — no government fee
• EPC registration (RCMC): Varies by council, typically ₹1,000–₹10,000 depending on annual turnover slab

Professional fee

Starts at ₹4,999 covering IEC application, GST LUT filing and setup guidance for export documentation and compliance calendar.

Timeline

IEC is typically issued within 1–2 working days of application; the full package including GST LUT and EPC registration is completed in 10–15 working days.

Deliverables

• IEC certificate from DGFT
• Filed GST LUT acknowledgment
• EPC Registration-cum-Membership Certificate (RCMC), where opted for
• Export compliance calendar covering FEMA/FLA and LUT renewal

Frequently asked questions

Do I need an IEC if I only import occasionally?

Yes — an IEC is mandatory for any import or export shipment regardless of frequency or value, with limited exemptions for personal-use goods.

Is IEC required for service exports?

Yes, service exporters also need an IEC for FEMA and banking purposes, even though customs shipping bills are not involved.

Does the GST LUT need to be renewed every year?

Yes, the Letter of Undertaking for zero-rated export supplies must be filed afresh each financial year before making export supplies without payment of IGST.

Common mistakes

• Shipping the first export order without an IEC in place, causing customs clearance delays
• Not filing the GST LUT and instead paying IGST upfront on every export invoice, blocking working capital in refund claims
• Forgetting to renew the GST LUT at the start of a new financial year
• Missing the annual FEMA/FLA return for foreign assets/liabilities, where applicable, attracting RBI scrutiny

Penalties for non-compliance

• Exporting or importing without a valid IEC can lead to customs clearance denial and potential action under the Foreign Trade (Development and Regulation) Act, 1992
• Not filing GST LUT means IGST must be paid upfront on exports and claimed back as refund, causing working capital blockage and refund delays
• Delayed or non-filing of the FEMA/FLA annual return can attract penalty under FEMA up to three times the amount involved

Legal references

• Foreign Trade (Development and Regulation) Act, 1992 — governs IEC issuance by DGFT
• Central Goods and Services Tax Act, 2017 — governs LUT for zero-rated export supplies
• Foreign Exchange Management Act, 1999 — governs FEMA/FLA return and export proceeds realisation