In the world of export-import, each shipment counts. And you cannot afford to make any “uninformed investment”. So, if you have any doubt or a question, ask us. Our team of experts at The Dollar Business Intelligence Unit will be happy to answer your queries. Your question(s), if approved, will also be published on www.thedollarbusiness.com, and/or in the forthcoming issue of The Dollar Business

I am about to register an import-export company and I plan to import apparel, shoes and fashion accessories from some Asian countries to start with. I am aware of the process of getting IEC. To minimise the risk and to see if things are working out, can I buy products in Thailand and ship them to India via air cargo? I understand I would have to pay import duties. Can this be possible without an IEC? Please advise. (Krish, Owner, KC Imports & Exports, +91-9618616XXX, [email protected])

Dear Krish: No export or import can be made by any person without obtaining an IEC unless specifically exempted. However, there are certain categories of importers and exporters that are exempted from obtaining IEC – this includes ministries and departments of Central or State governments; persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture; persons importing/exporting goods from/to Nepal, Myanmar through Indo-Myanmar border areas and China (through Gunji, Namgaya Shipkila and Nathula ports), provided CIF value of a single consignment does not exceed Rs.25,000. In case of Nathula port, the applicable value ceiling will be Rs.1,00,000. For others, IEC is mandatory.

Response by: Steven Philip Warner, President (VMPL) & Editor-in-Chief, The Dollar Business

All my African customers are asking for a CNCA certificate. Is a CNCA certificate mandatory for exports to all countries in Africa?  What is the process of acquiring the certificate? Is there a particular approved agency that can provide this certificate? (Kishan Barai, CEO, Barai Overseas, Rajkot, Gujarat, +91-8128111XXX, [email protected])

Dear Kishan: Most countries in Africa need an Electronic Cargo Loading/Tracking Note/Certificate to clear the cargo. Different names are used by different countries, viz: CTN: Cargo tracking note; CTN No.: Cargo Tracking Note Number; ECTN: Electronic Cargo Tracking Note; BSC: Bordereau de Suivl des Cargaisons; BESC: Bordereau de Cargaison; FERI: Fiche Electronique des Renseignements Importation; COC: Certificate of Conformity; BIC: Bordereau D’Identification des Cargaison; CRN: Cargo Registration Note; SONCAP: Standards Organization of Nigeria Conformity Assessment Programe; CNCA: Conselho Nacional de Carregadores de Angola, among others.

A CNCA (Conselho Nacional de Carregadores) certificate is required for shipments to Angola. Angolan law requires that all cargo purchased abroad for import to Angola has a loading certificate. The agency administrating this law is the Angolan National Shipper’s Council also referred to as CNCA. The Loading Certificate number (CNCA certificate) must be shown on all documentation related to the cargo shipped under that Loading certificate. The shipper and/or forwarder should provide the Loading Certificate number to the ocean carrier at the loading port (loading agent) for inclusion in the manifest and Bill of Lading. The Loading Certificate must be obtained by the shipper/forwarder before loading the cargo, and it should be obtained from one of the CNCA agents around the world. No exceptions are made to the requirement of a Loading Certificate. All companies, customers, NGOs, embassies, etc., must obtain a Loading Certificate prior to loading.

An applicant who wishes to acquire the certificate has to communicate the following information to the approved agency: (a) B/L copy; (b) Commercial invoice (or a packing list if commercial invoice is not detailed enough); and (c) CNCA Application Form to be filled in each field (please take particular care in the insertion of complete 8-digit HS CODE). As per Angolan authorities, the approved agency in India is Dolphin Chartering, based in Mumbai.

Response by: Ajay Sahai, Director General & CEO, Federation of Indian Exports Organisation (FIEO)

A foreigner friend of mine, who is visiting India, wants to give me a substantial amount through an international bank draft. In case he is not able to give me the draft in person, he plans to send it by courier. In either case, I undertake to pay all applicable taxes and duties as per Government of India regulations. I have two questions. Can he give me the money? Is there any specific government or RBI approval required for the same? Please advise. (Keshab Dutta, +91-9810777XXX, [email protected])

Dear Keshab: We assume that when you say an ‘international bank draft’ it means a foreign currency denominated bank draft and that you do not hold a foreign currency account in any bank in India. Reserve Bank of India has permitted foreign inward remittance through banking channels without any restrictions (except in the case of remittances attracting the provisions of Foreign Contribution Regulation Act, 1976). This means, your friend can give you any amount of money through a foreign currency denominated bank draft. You can deposit the same in your personal bank account. While he can send it to you by courier, the need for the same has become redundant with the proliferation of online money transfer mechanisms. However, as the amount is ‘substantial’ you will be required to declare the source and reasons for receiving the same while filing your tax and pay the assessed tax thereon. Also, if the amount you receive exceeds Rs.1,00,000, the purpose of inward remittance i.e. whether it represents transfer of capital, profits, dividends etc., must be ascertained and reported by your bank, and the bank may seek that information from either of you.

Response by: Indranil Das Executive Editor, The Dollar Business

I am interested in exporting rice to European countries. How do I start? (Ananth, Software Engineer, GGK Tech, +91-8008648XXX, [email protected])

Dear Ananth: We are happy to hear of your decision to head into the world of foreign trade. Well, to start an export-import business, first you  need to obtain an Importer-Exporter Code (IEC) from the DGFT. An IEC is a 10-digit number allotted to a person that is mandatory for undertaking any export/import activities. Application for obtaining IEC can be filed online on the DGFT website. DGFT only accepts online applications for IEC issuance or modification and requires only three documents: (i) PAN; (ii) Cancelled cheque bearing entity’s pre-printed name or Bank Certificate; and (iii) Digital Photograph (3X3 cm). All you need to ensure is that details filled in the application should match with details in the uploaded documents.

Having said that, an online application for IEC however, can only be made using Digital Signature Certificate (DSC; Class II type). You can type the following URL in your browser – www.thedollarbusiness.com/memberships and subscribe to TDB GROW Programme. From applying for your Importer-Exporter Code (IEC), Digital Signature Certificate (DSC) and assisting you with advanced, actionable, and useful analytics derived from impeccable and priceless research on exports/imports of the product of your choice from The Dollar Business Intelligence Unit, a dedicated team at The Dollar Business will do the hard work for you.

Response by: Manish K. Pandey, Editor, The Dollar Business

We plan to import lubricants from UAE. How much do we have to pay as import duty? (Ummer Khalifa, Managing Director, VB Ventures, +91-9620920XXX, [email protected])

Dear Ummer: We assume you want to import lubrication oil falling under ITC HS Code: 27101980. Lubrication oils falling under the said HS code attract a total import duty of 20.291%. In case our assumption about the intended import product isn’t exact, please write to us. The Dollar Business Intelligence Unit would like to hear from you.

Response by: Dr. A. K. Sengupta, Chief Consulting Editor, The Dollar Business