Licenses and Permits Required for Exporting from India

Navigating India’s Export Compliance Landscape

India as a Fast-Growing Global Export Powerhouse

India has emerged as a major player in global trade, exporting to over 200 countries across sectors like pharmaceuticals, textiles, electronics, agricultural commodities, and engineered goods. With export volumes crossing USD 450 billion in FY 2023–24, India continues to strengthen its position as a preferred global sourcing destination.

Factors like cost competitiveness, production-linked incentives (PLI), robust manufacturing hubs, and the push for “Make in India” have fueled a sharp rise in demand for Indian goods across international markets. Whether you’re sourcing raw materials or finished products, importing from India offers strategic benefits in cost, quality, and diversity.

Why Compliance is Critical for Importers of Indian Goods

While India presents immense trade opportunities, importers must adhere to mandatory Indian export regulations to ensure seamless shipments and avoid customs delays, financial penalties, or legal issues. International buyers are required to ensure that their Indian supplier holds the necessary import-export permits and follows all compliance protocols.

Failure to meet the required documentation or engage with non-compliant exporters can result in:

• Seizure or rejection of goods at customs
• Loss of import duty exemptions or input tax credit
• Delayed cargo clearance or legal scrutiny
  

In an era of digitalized trade documentation and border security, regulatory compliance is not optional—it’s essential.

Key Licenses Required to Import Goods from India

To legally export goods out of India, the exporter must obtain the following key licenses and permits:

• Importer Exporter Code (IEC): A 10-digit registration issued by the Directorate General of Foreign Trade (DGFT), mandatory for all import-export transactions.
  
• GST Registration for Importers: Required to comply with India’s Goods and Services Tax framework and claim Input Tax Credit (ITC) on IGST levied at customs.
  
• Special Permits for Restricted Goods: These include export licenses, No Objection Certificates (NOCs), or approvals from sectoral regulators like the Ministry of Defence, CDSCO, or FSSAI, depending on the type of product.

Importer Exporter Code (IEC): Your First Step to Importing from India

What is the IEC Code and Why is it Mandatory?

The Importer Exporter Code (IEC) is a 10-digit alphanumeric code issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce, Government of India. It serves as a unique identification number for businesses involved in the import or export of goods and services from India.

Whether you’re an individual, partnership, LLP, or private limited company, obtaining an IEC code is mandatory for importing from India or sending goods abroad.

Key Uses of the IEC Code:

• Required at the time of customs clearance of imported goods
• Mandatory for remittance of foreign currency through banks
• Essential to claim export incentives like RoDTEP, MEIS, and SEIS
• Enables compliance under GST, FEMA, and RBI regulations
  

Note: Businesses engaged in import/export without a valid IEC may face penalties, delayed shipments, or inability to process payments through authorized banks.

Why the IEC Code Matters for Global Importers

If you’re sourcing products from India, it’s crucial to ensure that your Indian supplier has a valid IEC. Here’s why:

• Customs Clearance: IEC is linked to the exporter’s identity and is validated by Indian Customs for every shipment.
• Banking & Forex Compliance: The IEC is used by banks when processing payments related to international trade.
• Eligibility for Government Benefits: Exporters without an IEC cannot avail of DGFT or Ministry of Commerce benefits like duty drawbacks or GST refunds.
  

How to Get IEC Code for Importing from India

Step-by-Step IEC Registration Process for Importers and Exporters

Getting an IEC for Indian businesses is now a simple online process via the DGFT portal. Here’s how:

Step 1: Register on DGFT Portal

• Visit https://www.dgft.gov.in
• Create an account using your business email and mobile number
  

Step 2: Fill Out Form ANF-2A

• Select “Apply for IEC” and complete Form ANF-2A digitally
  

Step 3: Upload Required Documents

• PAN Card of the entity
• Address proof (Electricity Bill/Lease Agreement/Telephone Bill)
• Bank certificate or cancelled cheque for the business account
  

Step 4: Pay the Application Fee

• Flat fee of INR 500 (payable via Net Banking, Credit/Debit Card, or UPI)
  

Step 5: Receive the IEC Certificate

• Once verified, your IEC is issued digitally
• The IEC can be downloaded anytime from the DGFT portal
  

GST Registration for Imports in India: What Importers Must Know

Is GST Mandatory for Importing from India?

Yes — GST registration is mandatory for importers operating in or through India. Any business or individual involved in importing goods into India, whether for resale, manufacturing, or re-export, must obtain a valid GSTIN (Goods and Services Tax Identification Number).

Even if you’re not physically based in India but import through an Indian entity or for re-export purposes, GST compliance is non-negotiable.

Key GST Rules and Implications for Importers

1. IGST is Levied on All Imports

Imports into India attract Integrated GST (IGST) under the reverse charge mechanism at the time of customs clearance. This tax is applied on the transaction value plus customs duty and other applicable charges.

2. Eligibility to Claim Input Tax Credit (ITC)

Importers can claim Input Tax Credit on IGST paid at customs, which can be used to offset future tax liabilities under GST. This makes imports cost-efficient and reduces tax burden when properly documented.

3. GSTIN Required for Customs Clearance

You must provide your GSTIN at the time of filing a Bill of Entry. Without GST registration, importers cannot:

• Clear goods through Indian Customs
• File GST returns (GSTR-1, GSTR-3B)
• Avail benefits under input tax system
  

Documents Required for GST Registration (Importers)

To register for GST as an importer in India, keep the following documents ready:

Document Type	Purpose
PAN of the business/entity	Unique ID for tax registration
Aadhaar of the proprietor/partner	Identity verification
Business address proof	Utility bill, rent agreement, etc.
Bank account proof	Cancelled cheque or bank statement
Digital Signature Certificate (DSC)	Required for company/LLP registration

For companies with foreign ownership or NRIs acting as importers, additional documentation such as passport copies and board resolutions may be required.

Special Permits for Restricted or Regulated Goods

What Are Restricted Goods for Export from India?

Restricted goods are products that cannot be exported freely from India without prior approval or licenses from government authorities. These goods may be sensitive in nature—due to national security, public health, environmental protection, or foreign policy considerations.

As per the ITC (HS) Export Policy published by the Directorate General of Foreign Trade (DGFT), restricted items fall under the “Restricted” or “Prohibited” categories and require special permits before being shipped out of India.

Do You Need a Special Export License?

Yes. If your product is listed as a restricted or regulated item, you must:

1. Obtain an Export License from DGFT
2. Secure No Objection Certificates (NOCs) from relevant ministries or regulatory bodies
3. Comply with international treaties, like the Chemical Weapons Convention, UN Security Council sanctions, or Wassenaar Arrangement (for dual-use technologies)
   

Import License Requirements for Pharma and Defense Items

Certain goods such as pharmaceuticals, defense-related equipment, and high-value minerals are subject to sector-specific regulations. Here’s a breakdown of the types of permits and issuing authorities based on product category:

Category	Permit Issuing Authority	Examples of Restricted Goods
Pharmaceuticals	CDSCO, DGFT	APIs (Active Pharmaceutical Ingredients), injectables, formulations
Defense or Dual-use Items	Ministry of Defence, DGFT	Drones, satellite components, surveillance gear
Plants & Animals	MoEFCC (Ministry of Environment), DGFT	Animal skins, ivory, endangered plant species
Precious Metals & Stones	DGFT, RBI	Uncut diamonds, gold, rare earth metals

Steps to Apply for Special Export Permits in India

Step 1: Classify Your Product

• Check the DGFT’s ITC (HS) code list to confirm if your product is listed as “Restricted”
  

Step 2: Apply for Export License via DGFT Portal

• Submit online application with relevant documents and justification
  

Step 3: Get Sectoral NOCs

• Pharmaceuticals → CDSCO
• Defense items → MoD
• Wildlife or plants → MoEFCC
• Precious items → RBI & DGFT
  

Step 4: Comply with International Control Regimes

• If applicable, provide evidence of treaty compliance, end-user certificates, and export control declarations

Other Licenses and Approvals Importers May Need

While the Importer Exporter Code (IEC) and GST registration are essential for most transactions, certain products require additional export licenses or regulatory approvals depending on their nature and the importing country’s compliance requirements. Here’s a quick guide to some of the most common sector-specific approvals needed when importing from India.

FSSAI License: For Importing Food Products from India

If you’re planning to import processed food, beverages, dairy, or packaged edibles from India, ensure that the exporter is registered with the Food Safety and Standards Authority of India (FSSAI).

When Is an FSSAI License Required?

• For processed and packaged foods
• Nutraceuticals, dietary supplements, and health drinks
• Spices, condiments, tea, and coffee
  

FSSAI approval ensures the product complies with India’s food safety regulations and meets labeling, hygiene, and quality norms essential for clearance by food regulators in the destination country.

WPC Approval: For Telecom and Wireless Equipment

Importers sourcing electronic goods, wireless devices, or communication tools from India should check whether the product needs WPC (Wireless Planning and Coordination) approval.

Examples of Products Requiring WPC Approval:

• Mobile phones and tablets with wireless modules
• Wi-Fi routers, GPS trackers, RFID devices
• Wireless microphones, IoT products, drones
  

WPC approval is granted by India’s Department of Telecommunications and is mandatory before such items can be exported, as they operate on licensed radio frequencies.

Textile Committee NOC: For Exporting Certain Fabrics and Apparel

For specific textile products such as technical textiles, jute items, silk fabrics, or handicrafts, exporters must obtain a No Objection Certificate (NOC) from the Textile Committee.

This ensures:

• Quality certification and lab testing
• Authenticity verification of traditional or GI-tagged textiles
• Compliance with eco-labeling norms (especially for EU and US-bound exports)
  

APEDA and Rubber Board Registration: For Agricultural Exports

If you’re importing agricultural, horticultural, or plantation-based products from India, the exporter must be registered with the relevant export promotion body:

Product Category	Authority	Examples
Fruits, vegetables, cereals	APEDA	Mangoes, basmati rice, bananas, pulses
Natural rubber products	Rubber Board	Raw rubber, latex, rubber sheets
Tea & coffee	Tea Board / Coffee Board	Orthodox tea, Arabica coffee

These registrations help ensure traceability, product quality, and alignment with phytosanitary and safety standards set by importing nations.

Compliance Tips for International Importers: Avoid Delays and Stay Compliant

Successfully importing from India requires more than just selecting the right supplier — it involves staying aligned with India’s export regulations, customs documentation, and international trade standards. Below are key compliance tips that every international importer should follow to ensure faster clearance, lower risk, and smooth delivery.

1. Get All Licenses and Registrations in Advance

Before finalizing a purchase order, ensure that your Indian exporter has:

• A valid Importer Exporter Code (IEC)
• GST registration
• Any special permits or NOCs applicable to restricted goods
  

Delays in paperwork or missing licenses can result in customs hold-ups or shipment seizures.

2. Prefer AEO-Certified Exporters for Seamless Customs Clearance

Working with an Authorized Economic Operator (AEO)-certified exporter in India offers multiple advantages:

• Expedited customs processing
• Lower inspection rates and priority treatment
• Eligibility for self-certification and deferred duties
  

AEO status is granted by Indian Customs to compliant exporters with a clean track record, making your supply chain more secure and efficient.

3. Verify the HS Code and Export Classification

The Harmonized System (HS) code is crucial for:

• Correct classification of your goods under India’s Customs Tariff Act
• Determining the applicable duty rates, export benefits, and restrictions
• Mapping with international trade data for your importing country
  

Always cross-check HS codes with your supplier and ensure they align with the DGFT’s ITC (HS) schedule.