Organization of Export-Import Firms
Export-Import (EXIM) firms can be structured in different ways depending on their size, scope, and nature of operations.
Types of Export-Import Firms
Departments in an Export-Import Firm
Business Planning in Export-Import
Export-Import operations require careful business planning to manage risks, comply with laws, and ensure profitability.
Steps in Business Planning for EXIM
Planning of Export Operations
Steps in Export Operation Planning
Planning of Import Operations
Summary Table
Import Procedures (Step-by-Step Overview)
| Step |
Details |
| 1. Obtain Import Export Code (IEC) |
Mandatory for all importers (issued by DGFT – Director General of Foreign Trade). |
| 2. Check Import Policy |
Verify if goods are freely importable, restricted, or prohibited (DGFT policy). |
| 3. Place Import Order |
Negotiate terms (price, delivery, payment) with foreign supplier. |
| 4. Arrange Finance |
Arrange foreign currency, bank finance, open Letter of Credit if needed. |
| 5. Shipping Arrangements |
Finalize mode of transport (Sea, Air), insurance, and freight forwarding. |
| 6. Documentation |
Receive commercial invoice, packing list, bill of lading/airway bill, insurance. |
| 7. Customs Clearance (Import) |
File Bill of Entry, pay applicable customs duty, IGST, and clear goods. |
| 8. Delivery & Payment |
Take delivery of goods; make payment as per agreed terms. |
Export Promotion Schemes Overview
Export promotion schemes help exporters by reducing cost and refunding taxes/duties.
Duty Drawback Scheme
Advance License Scheme (Advance Authorization)
| Feature | Details |
|---|
| Objective | Duty-free import of inputs for production of export goods. |
| Condition | Export obligation must be fulfilled within specified time (usually 18 months). |
| Transferability | License is non-transferable (only valid for actual user). |
| Application | Apply through DGFT with input-output norms (SION). |
Remission Scheme (RoDTEP)
| Feature | Details |
|---|
| Full Name | RoDTEP – Rebate of Duties and Taxes on Exported Products. |
| Objective | Refund non-creditable taxes/duties like electricity duty, mandi tax, etc. |
| Eligibility | Available to all sectors (except SEZ, EOU); refund via electronic scrip. |
| Replacement | Replaced MEIS and DEPB schemes from January 1, 2021. |
DEPB Scheme (Discontinued)
| Feature | Details |
|---|
| Full Name | Duty Entitlement Pass Book (DEPB) Scheme. |
| Benefit | Exporters earned duty credit (as % of FOB value) to pay import duties. |
| Status | Discontinued in 2011, replaced by newer schemes (MEIS, RoDTEP). |
Summary Table
| Scheme / Topic | Key Points |
|---|
| Import Procedure | IEC code → Import Order → Finance → Shipping → Customs → Delivery. |
| Duty Drawback | Refund of duties on export inputs (AIR/Brand Rate). |
| Advance License | Duty-free import of inputs for export goods; obligation to export. |
| Remission (RoDTEP) | Refund of non-creditable taxes/duties; new scheme from 2021. |
| DEPB (Discontinued) | Duty credit on export value to pay import duty (stopped in 2011). |
| Other Discontinued Licenses | Replenishment License, Special Import License — no longer available. |
