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A Report On The Customs System Of India

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For our team project, we will be exporting LED light bulbs from India. This country has initiated an Indians Customs EDI System to facilitate trade and to exchange documents electronically. Vijay Anand, customs manager for India with Expediters International describes the export processes to be very simple, “If all the documentation are perfect, you can even clear customs on an export within three to four hours subject to the documentation” (new.export.gov) First, it is mandatory for an exporter to register their business with the Directorate General Foreign Trade (DGFT) or regional import export licensing authority. An Importer Exporter Code (IEC) is also mandatory, it is a 10-digit code which is issued by DGFT. (portology.com) The IEC code serves as an export license, a customs copy of this document needs to presented to the customs authority for clearing the goods and to prevent penalties and/or possible confiscation of the good (indolegal.com).Along with the IEC, Anand labels the Authorized Dealer (AD) code as a basic requirement for exporting from India, “Every exporter who’s involved in a foreign transaction should have a bank account, and this account should be informed to Indian customs and through the Bank of India, which is a federal bank”, an AD code is allotted to each bank (new.export.gov). Moreover, a Business Identification Number (BIN) is required to file a shipping bill for clearance of exports. Further documents that may be necessary in the

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