India’s $800 Billion Trade Target – Are You Ready? India crossed $780 billion in total merchandise trade in FY 2024-25, targeting $1 trillion in exports by 2030. Foreign Trade Policy 2023-28 provides the roadmap – with schemes like RoDTEP, Advance Authorisation, EPCG, and Duty Drawback worth thousands of crore in benefits annually. Yet most Indian exporters – especially MSMEs – are not fully utilizing the incentives they are entitled to. Simultaneously, importers face complex duty structures, quality control orders, and ICEGATE compliance. This guide covers the complete export-import ecosystem – from your first IEC to claiming RoDTEP credits – with all June 2026 updates.
📋 Table of Contents
- India’s Trade Architecture – Key Institutions
- IEC (Import Export Code) – Your Trade Licence
- RCMC – Registration with Export Promotion Councils
- HSN Classification – Getting It Right
- RoDTEP – Remission of Duties and Taxes (2025-26 Updates)
- Advance Authorisation Scheme – Duty-Free Inputs for Export
- EPCG – Import Capital Goods at 0% or 3% Duty
- Duty Drawback – Reclaiming Customs Duty on Export Inputs
- GST on Exports – LUT vs IGST Route
- GST on Imports – IGST, BCD, SWS
- ICEGATE – Customs Filing: Shipping Bills and Bills of Entry
- Star Export House Status
- AEO – Authorised Economic Operator
- FEMA Trade Compliance
- June 2026 Key Updates
- Step-by-Step: First Shipment Export Guide
- Step-by-Step: First Shipment Import Guide
- Practical Case Studies
- Frequently Asked Questions
1. India’s Trade Architecture – Key Institutions
| Institution | Role | Portal |
|---|---|---|
| DGFT (Directorate General of Foreign Trade) | Issues IEC; administers FTP 2023-28; regulates import-export; issues licences (Advance Auth, EPCG, SCOMET); RCMC; RoDTEP | dgft.gov.in |
| ICEGATE (Indian Customs EDI Gateway) | Online customs portal; filing of Shipping Bills (exports) and Bills of Entry (imports); duty payment; RoDTEP credit issuance; AEO | icegate.gov.in |
| CBIC (Central Board of Indirect Taxes & Customs) | Frames customs duty policy; anti-dumping; safeguard duties; customs valuation; quality control orders | cbic.gov.in |
| RBI / AD Banks (Reserve Bank of India) | FEMA compliance; export proceeds realisation; import payments; buyer’s credit; eBRC system | rbi.org.in |
| Export Promotion Councils (EPCs) | Issue RCMC (Registration Cum Membership Certificate); sector-specific support; market development; trade fairs | Sector-specific (FIEO, APEDA, GJEPC, EEPC, CLE etc.) |
| ECGC (Export Credit Guarantee Corporation) | Insurance against export payment risk; political risk cover; country risk rating; credit limit for buyers | ecgc.in |
| EXIM Bank | Concessional export financing; buyer’s credit; line of credit to foreign countries for Indian exports | eximbankindia.in |
| BIS (Bureau of Indian Standards) | Quality Control Orders (QCOs) for specific imports; mandatory BIS certification for listed products | bis.gov.in |
2. IEC (Import Export Code) – Your Trade Licence
IEC is the mandatory gateway for all India trade: Every person, firm, company, LLP, trust, HUF, or society that imports into India OR exports from India (for commercial purpose) must have an IEC. Without IEC, no import/export transaction is legally valid. Banks require IEC for outward trade payments. RoDTEP, AAS, EPCG – all require valid IEC.
Key IEC Facts
| Parameter | Details |
|---|---|
| What is IEC? | 10-digit Import Export Code issued by DGFT; linked to PAN; one IEC per PAN |
| Fee | ₹500 (very low; one-time) |
| Processing time | 1–3 working days after online application |
| Validity | Lifetime — no expiry; but annual update mandatory |
| Annual Update (CRITICAL) | Every IEC holder must update their profile on DGFT portal between 1 April and 30 June each year. If missed → IEC automatically deactivated → cannot trade. Reactivation requires profile update. |
| Annual Update Deadline | By 30 June 2026/2027/2028….. |
| Who needs IEC? | All commercial importers; all exporters; Amazon Global / Etsy / international e-commerce sellers; entities applying for FTP benefits; companies sending trade remittances |
| Who does NOT need IEC? | Import/export for personal use (not commercial); government departments for their own use; defence/military imports with special clearance |
| June 2026 update | All DGFT applications (including IEC modification) now require Aadhaar-linked authentication on the revamped DGFT portal |
How to Get IEC – Online Process
1
Register on dgft.gov.in → create account with Aadhaar-linked mobile; link Aadhaar for authentication
2
Start IEC Application: Services → IEC → Apply for IEC; fill entity details (business name, constitution, address, directors)
3
Upload Documents: PAN card; Aadhaar (proprietor/directors); cancelled cheque/bank certificate; address proof of business; photograph
4
Pay ₹500 online (UPI, net banking, card)
5
IEC Issued within 1–3 working days; e-IEC certificate downloadable from DGFT portal; no physical certificate sent
6
Post-IEC: Register AD (Authorised Dealer) Code at each customs port where you will trade; register on ICEGATE for customs filing
3. RCMC – Registration with Export Promotion Councils
Registration Cum Membership Certificate (RCMC) is issued by the relevant Export Promotion Council (EPC) or commodity board for your product. RCMC is required to access most FTP benefits and is used to verify exporter credentials for market access programmes, trade fairs, and incentives.
| Product Category | Relevant EPC/Board | Portal |
|---|---|---|
| General merchandise / multi-product exporters | FIEO (Federation of Indian Export Organisations) | fieo.org |
| Engineering products | EEPC India | eepcindia.org |
| Gems and jewellery | GJEPC | gjepc.org |
| Agricultural products (fruits, vegetables, processed food) | APEDA (Agricultural and Processed Food Export Development Authority) | apeda.gov.in |
| Marine products | MPEDA (Marine Products Export Development Authority) | mpeda.gov.in |
| Textiles, garments, home furnishings | TEXPROCIL / AEPC (Apparel) | texprocil.org / aepc.in |
| Leather and leather goods | CLE (Council for Leather Exports) | leatherindia.org |
| Chemicals and pharmaceuticals | Chemexcil / Pharmexcil | chemexcil.in / pharmexcil.com |
| Electronics / IT hardware | ELCINA / ESC | elcina.com |
| Software and IT services | NASSCOM (for FTP purposes) | nasscom.in |
| Coffee, spices, tea, tobacco | Respective commodity boards (Coffee Board, Spices Board) | Specific board portals |
4. HSN Classification – Getting It Right
The Harmonized System of Nomenclature (HSN) is the international product classification system used globally for customs purposes. India uses 8-digit HSN codes (6-digit international + 2 India-specific). Getting HSN right is critical – it determines:
- Customs duty rate on imports (BCD percentage)
- IGST rate on imports (same as GST domestic rate for that HSN)
- RoDTEP eligibility and rate (specific to 8-digit HSN under Appendix 4R)
- Anti-dumping duty (ADD) applicability
- Quality Control Orders (QCO) and BIS certification requirements
- Export restrictions / SCOMET (Special Chemicals, Organisms, Materials, Equipment, Technologies) – dual-use goods requiring DGFT licence
⚠️ Finance Act 2025 HS code reclassification – action required:
Finance Act 2025 amending the Customs Tariff Act, 1975 reclassified several HS codes. Exporters must revalidate their 8-digit HS code classification against the revised Customs Tariff Schedule. A mismatch between the tariff HS code and the RoDTEP Appendix 4R entry can result in rejection of RoDTEP claims. Cross-check your HS code against both the current Customs Tariff Schedule and Appendix 4R/4RE before every shipment.
Finance Act 2025 amending the Customs Tariff Act, 1975 reclassified several HS codes. Exporters must revalidate their 8-digit HS code classification against the revised Customs Tariff Schedule. A mismatch between the tariff HS code and the RoDTEP Appendix 4R entry can result in rejection of RoDTEP claims. Cross-check your HS code against both the current Customs Tariff Schedule and Appendix 4R/4RE before every shipment.
5. RoDTEP – Remission of Duties and Taxes on Exported Products
RoDTEP (Remission of Duties and Taxes on Exported Products):
India’s primary export incentive scheme – replaced WTO-incompatible MEIS. Refunds embedded taxes and duties that are not covered under any other refund mechanism (electricity duty, mandi tax, stamp duty, fuel taxes at state level). WTO-compliant because it remits actual taxes paid, not a subsidy.
India’s primary export incentive scheme – replaced WTO-incompatible MEIS. Refunds embedded taxes and duties that are not covered under any other refund mechanism (electricity duty, mandi tax, stamp duty, fuel taxes at state level). WTO-compliant because it remits actual taxes paid, not a subsidy.
Key RoDTEP Facts (June 2026)
| Parameter | Details |
|---|---|
| Rate applicable document | Appendix 4R (DTA exporters; revised effective 1 May 2025 per PN 10/2025-26); Appendix 4RE (SEZ, EOU, Advance Authorisation holders; effective 1 June 2025 per PN 11/2025-26) |
| Rate range | 0.1% to 4.3% of FOB value of exports (varies by HSN code) |
| How it works | Declare intent on Shipping Bill at time of export → credits auto-generated in ICEGATE account → transferable scrips → use to pay import duty or sell in market |
| Recent extension | RoDTEP scheme was extended for DTA units until March 31, 2026; and restored for AA, EOU, SEZ exporters from 1 June 2025. Further extension to September 2026 announced vide Notification No. 74/2025-26 dated March 31, 2026. |
| Excluded products (currently) | Steel, pharmaceuticals, and organic/inorganic chemicals currently fall outside the RoDTEP scheme. |
| Exclusions | Exports under Duty Drawback (if drawback already covers the same taxes); products in exclusion list |
| How to claim | Declare intent to claim on the Shipping Bill itself at the time of export. Scrips are generated electronically via the ICEGATE portal. |
| Use of scrips | Pay Basic Customs Duty on imports; transfer to other importers; cannot use for IGST or SWS |
| Combined with Drawback | In most cases, you can claim the All Industry Rate (AIR) of Duty Drawback along with RoDTEP, provided the Drawback rate doesn’t already account for the taxes covered by RoDTEP. |
RoDTEP + Drawback layering = maximum benefit: Many exporters claim both Duty Drawback (on customs duty paid on imported inputs) AND RoDTEP (on state-level taxes, fuel levies, stamp duties not covered by drawback). These are not mutually exclusive when they cover different taxes. Engage GCA to calculate your maximum legitimate incentive stack for each export shipment.
6. Advance Authorisation Scheme – Duty-Free Inputs for Export
Advance Authorisation Scheme (AAS):
Allows exporters to import inputs duty-free (BCD exempt; IGST typically also exempt) if those inputs are physically incorporated in the export product. The exporter must fulfil an export obligation (export the finished goods) within the prescribed time.
Allows exporters to import inputs duty-free (BCD exempt; IGST typically also exempt) if those inputs are physically incorporated in the export product. The exporter must fulfil an export obligation (export the finished goods) within the prescribed time.
| Parameter | Details |
|---|---|
| Who can apply | Any manufacturer-exporter or merchant-exporter tied to a supporting manufacturer; having IEC |
| How to apply | Online on DGFT portal BEFORE importing; DSC required; specify product, inputs, SION (Standard Input-Output Norms) or seek adhoc norms |
| Inputs covered | Raw materials, components, intermediates, consumables (fuel excluded), packing material – that are physically incorporated in the export product |
| Export obligation | Export the finished goods with at least 15% value addition over the CIF value of imported inputs |
| Export obligation period May 2026 Update | 12 months from date of issue of Advance Authorisation (reduced from 18 months for most sectors under DGFT Notification May 2026). Capital goods: still 18 months. |
| Value addition | Minimum 15% value addition (Export FOB − Import CIF) / Import CIF ≥ 15% |
| SION | Standard Input-Output Norms published by DGFT specify permissible input quantities per unit of export. If no SION → apply for adhoc norms → DGFT fixes quantities. |
| Bond/LUT with customs | Must execute bond or LUT with customs covering duty payable on imports under AAS |
| RoDTEP on AAS exports | DGFT has restored RoDTEP benefits for AA holders from 1 June 2025. |
⚠️ Non-fulfillment of AAS export obligation: If you import duty-free under AAS but fail to export within the obligation period: (a) Customs duty + interest at 15% p.a. on all duty-free imports; (b) 200% fine on customs duty if willful default; (c) IEC may be suspended. Track every AAS obligation carefully – multiple open AAS licenses with unfulfilled obligations are a major compliance risk.
7. EPCG – Import Capital Goods at 0% or 3% Duty
Export Promotion Capital Goods (EPCG) Scheme:
Allows import of new capital goods (machinery, equipment, tools, testing instruments, spares, software systems) at 0% Basic Customs Duty (or 3% for second-hand goods) against an export obligation. Enables technology upgradation at significantly lower cost.
Allows import of new capital goods (machinery, equipment, tools, testing instruments, spares, software systems) at 0% Basic Customs Duty (or 3% for second-hand goods) against an export obligation. Enables technology upgradation at significantly lower cost.
| Parameter | Details |
|---|---|
| Duty benefit | 0% BCD on new capital goods (normal BCD can be 0–20%); 3% for second-hand goods |
| Who can apply | Manufacturer-exporters; service providers; merchant-exporters tied to manufacturers; star export houses |
| How to apply | Online on DGFT portal → EPCG section → upload documents → DGFT issues EPCG Authorisation → import CGs within validity |
| Export obligation | 6× the duty saved (BCD that would have been paid without EPCG) in FOB value of exports, over 6 years |
| Obligation period May 2026 Update | 12 months for most sectors (reduced from 18 months). Capital goods sector: still 18 months. This is the period within which EPCG applications must be completed – not the 6-year export obligation period. |
| Capital goods examples | CNC machines, injection moulding machines, testing labs, packaging machines, refrigeration units, software systems, quality control equipment, solar panels for captive power |
| Nexus requirement | Capital goods must be used in the export manufacturing activity (not personal use, not non-export production) |
| Post-import compliance | Annual EPCG compliance report to DGFT; customs-stamped documents required; maintain export obligation records |
EPCG Benefit Example
Textile Export Pvt. Ltd. imports knitting machines worth ₹2 crore CIF. Normal BCD: 7.5% = ₹15 lakh. EPCG: 0% BCD → saving ₹15 lakh.
| Item | Without EPCG | With EPCG |
|---|---|---|
| BCD on ₹2Cr machinery | 7.5% = ₹15L | 0% |
| Export obligation | None | 6× ₹15L duty saved = ₹90L FOB exports in 6 years |
| Typical annual export | ₹5Cr | ₹5Cr (₹90L obligation easily met in 6 months) |
| Net benefit | — | ₹15L saved on machinery cost immediately |
8. Duty Drawback – Reclaiming Customs Duty on Export Inputs
Duty Drawback allows exporters to claim a refund of customs duties paid on imported inputs that are used in the manufacture of exported goods. It is different from RoDTEP (which remits other taxes) and can be claimed simultaneously.
| Type | Who Gets It | How |
|---|---|---|
| All Industry Rate (AIR) Drawback | Any exporter – pre-determined rates by product (Appendix 4B) | Declare on Shipping Bill; drawback auto-credited to bank account after export |
| Brand Rate / Special Brand Rate | Exporters whose actual duty paid on inputs exceeds AIR significantly | Apply to Commissioner of Customs with actual duty payment evidence; more time-consuming but higher benefit |
| Rate range (AIR) | 0.5% to 9%+ of FOB value depending on product | Rates notified by Ministry of Finance (last notified Notification No. 21/2026-Customs (N.T.) dated February 16, 2026 revised AIR rates for Chapter 71 (Jewellery)) |
| Limitation | Cannot claim drawback AND RoDTEP on the SAME taxes | Drawback covers customs duty; RoDTEP covers other levies → can layer the two |
9. GST on Exports – LUT vs IGST Route
Exports are zero-rated supplies under GST (§2(47), CGST Act). Exporters can export without paying IGST (and claim ITC refund) or pay IGST and get it refunded. Two routes:
| Parameter | Route 1: LUT (Letter of Undertaking) – Preferred | Route 2: Pay IGST and Claim Refund |
|---|---|---|
| What it is | File Form GST RFD-11 (LUT) on GST portal; undertake to comply with GST export conditions; export without paying IGST | Pay IGST on exports; claim refund of IGST paid |
| Cash flow | No cash outflow on IGST; ITC on inputs refunded as cash | IGST paid upfront; refunded later (typically 30-60 days but delays common) |
| LUT validity | Annual – file new LUT each financial year (April–March) | No LUT needed |
| Recommended for | Most exporters – preferred as no cash lock-up in IGST payment | Exporters who cannot file LUT due to past non-compliance or voluntary preference |
| ITC refund | Accumulated input ITC credited to exporter; refund via GST portal Form RFD-01 | IGST paid on exports refunded; ITC on inputs also available |
| Services exports | LUT required; eBRC (from 1 May 2025: “Mode of Export of Services” field mandatory) | Same options available |
File LUT for every financial year before first export: The LUT must be filed on the GST portal for each financial year before the first export shipment. It is a simple online declaration – takes 10 minutes. If LUT is not filed and you export without paying IGST → this export becomes a non-LUT export → IGST demand from GST department + interest. GCA handles LUT filing as part of annual GST retainer for exporter clients.
10. GST on Imports – IGST, BCD, SWS
| Duty Component on Import | Rate | ITC Claimable? | Basis |
|---|---|---|---|
| Basic Customs Duty (BCD) | 0%–100%+ depending on product (typically 0%, 2.5%, 5%, 7.5%, 10%, 15%, 20%) | NOT claimable as ITC – true cost | Customs Tariff Act 1975; product-specific |
| Social Welfare Surcharge (SWS) | 10% of BCD | NOT claimable as ITC | Finance Act 2018; on top of BCD |
| IGST on Import | Same as domestic GST rate for the product (5%, 12%, 18%, 28%) | FULLY CLAIMABLE as ITC in GSTR-3B | IGST Act; §3(7) Customs Tariff Act |
| Anti-Dumping Duty (ADD) | Varies by product and country of origin | NOT claimable | CBIC notifications; assessed by DGTR |
| Countervailing Duty (CVD) | Now merged into IGST on import | ITC claimable (part of IGST) | Post-GST: subsumed in IGST |
| Under AAS (Advance Authorisation) | BCD exempt; IGST may or may not apply depending on product | IGST (if paid): claimable | Customs Notification 18/2015 and updates |
| Under EPCG | BCD: 0% (new CGs); 3% (second-hand); IGST at normal rate | IGST: claimable as ITC | Customs Notification 16/2015 |
Import Duty Calculation Example
Importing machinery (HSN 8456) worth CIF ₹10 lakh. BCD: 7.5%. IGST rate: 18%.
| Component | Rate | Base | Amount | ITC? |
|---|---|---|---|---|
| BCD | 7.5% | ₹10L CIF | ₹75,000 | No ITC |
| SWS | 10% of BCD | ₹75,000 | ₹7,500 | No ITC |
| IGST base | — | CIF + BCD + SWS = ₹10,82,500 | — | |
| IGST | 18% | ₹10,82,500 | ₹1,94,850 | Full ITC |
| Total paid | ₹2,77,350 | ₹1,94,850 ITC claimable | ||
| Net true cost | ₹10,82,500 (machine) + ₹82,500 (BCD+SWS only) | IGST of ₹1.95L flows back as ITC |
11. ICEGATE – Customs Filing: Shipping Bills and Bills of Entry
For Exporters – Shipping Bill
- File Shipping Bill on ICEGATE (icegate.gov.in) – DSC (Digital Signature Certificate) mandatory
- Contains: Exporter details, IEC, invoice details, product description, HSN code, quantity, FOB value, port of loading, port of destination, GST LUT/IGST details, Drawback/RoDTEP claim declaration
- Types: Free Shipping Bill (no incentive claim), Drawback Shipping Bill, Duty-Free Shipping Bill (AAS), EPCG Shipping Bill
- After customs examination and clearance: Let Export Order (LEO) issued → goods cleared for export
- After LEO: RoDTEP/Drawback credits generated in ICEGATE account
For Importers – Bill of Entry
- File Bill of Entry on ICEGATE before or on arrival of goods
- Types: Home Consumption (B/E Type H – straight import), Warehousing (B/E Type W – customs bonded warehouse), Ex-Bond (B/E Type B – from bonded warehouse to home)
- Customs assesses duty: verifies HS code, customs value, duty calculations
- Out of Charge (OOC) issued after duty payment → goods released to importer
- Risk Management System (RMS): Low risk imports get automatic green channel; high risk: customs examination
- IGST paid on import → claim as ITC in GSTR-3B (requires ICEGATE-GSTN linkage; auto-populated)
AD Code registration – must-do before first shipment: AD (Authorised Dealer) Code is your bank’s unique code at the customs port. You must register your bank’s AD Code at each port through which you plan to trade. Obtain an AD Code letter from your bank and submit to the customs port commissioner’s office. This is a one-time registration per port – do it before your first shipment or import to avoid delays.
12. Star Export House Status
| Category | Minimum FOB Export in Current + 2 preceding years (USD) | Key Benefits |
|---|---|---|
| One Star Export House | USD 3 million | Self-certification on origins; simplified procedures; some bank facility improvements |
| Two Star Export House | USD 25 million | All One Star benefits + priority in Grievance Resolution Cell; additional EPCG/AAS benefits |
| Three Star Export House | USD 100 million | Single Window Clearance at airports/ports; exemption from furnishing bank guarantee in most FTP schemes |
| Four Star Export House | USD 500 million | All Three Star benefits + enhanced facilitation; priority customs clearance |
| Five Star Export House | USD 2 billion | Premier status; highest facilitation; government recognition as India’s export champion; fast-track approvals |
- Apply on DGFT portal with export performance proof (Shipping Bills)
- Valid for 3 years; renewable
- Both direct exports and deemed exports count towards star status
13. AEO – Authorised Economic Operator
India’s Authorised Economic Operator (AEO) program (aligned with WCO SAFE Framework) certifies trusted traders for facilitated customs treatment. Three tiers:
| AEO Tier | Eligibility | Key Benefits |
|---|---|---|
| AEO-T1 (Importer/Exporter) | Importers/Exporters with clean compliance record; significant trade volumes | Direct Port Delivery (DPD) for imports; reduced examination; dedicated customs officer; faster clearance |
| AEO-T2 (Importer/Exporter) | Higher volume; more rigorous vetting | All T1 benefits + deferred duty payment (pay customs duty on 15th of following month instead of at filing) |
| AEO-T3 (Logistics Service Provider) | CHAs, Cargo Terminals, Custodians, Freight Stations | Recognition as trusted logistics partner; priority queueing; mutual recognition with foreign AEO programs (US C-TPAT, EU AEO, Korea AEO) |
AEO mutual recognition creates global facilitation: India has signed Mutual Recognition Arrangements (MRAs) with USA, South Korea, Hong Kong, Taiwan, and several EU countries. An AEO-certified Indian exporter shipping to the US gets fast-track customs clearance from US Customs and Border Protection under C-TPAT reciprocity. For Indian exporters shipping to multiple countries, AEO certification can significantly reduce transit times and examination delays worldwide.
14. FEMA Trade Compliance
| FEMA Trade Requirement | Details |
|---|---|
| Export proceeds realisation | Export proceeds must be realised within 9 months from date of shipment (for goods); extendable with AD bank approval for specific cases |
| eBRC (e-Bank Realisation Certificate) | Bank automatically generates eBRC when inward remittance is received against export. Exporter self-certifies eBRC on DGFT portal. Required for export incentive claims. From 1 May 2025: “Mode of Export of Services” field mandatory in eBRC for services. |
| Advance payment for exports | Can accept advance payment before shipment; must ship within 1 year or refund; document all advances as “export advance” in books |
| Import payments | Must be within FEMA-permitted timelines; Letter of Credit (LC), DA/DP terms as per trade agreement; remittance via AD bank only |
| Buyer’s credit for imports | Foreign currency import loans up to USD 50 million per transaction for up to 3 years for capital goods; 1 year for non-capital; with RBI guidelines |
| Factoring / export credit | Pre-shipment credit (packing credit) at concessional rates from banks; post-shipment credit against shipping documents |
| ECGC export insurance | Insure against foreign buyer payment risk, political risk, country risk. ECGC provides country-wise buyer exposure reports to banks and exporters. |
15. June 2026 Key Updates
🆕 June 2026 Updates — DGFT & Customs:
- Aadhaar-linked DGFT authentication mandatory: All DGFT applications (IEC modification, EPCG, AAS, RCMC updates) must use revamped DGFT portal with Aadhaar-linked login. Physical / postal applications discontinued.
- Export obligation period reduced: Under both Advance Authorisation Scheme and EPCG: reduced from 18 months to 12 months for most sectors. Capital goods imports: still 18 months.
- PSIC requirement: Imports of steel, aluminium, and certain electronics now require Pre-Shipment Inspection Certificate (PSIC) from DGFT-approved inspection agencies. Verify your import HS code for PSIC applicability.
- GST-DGFT data sync (effective 1 July 2026): DGFT and GSTN integration enhanced for auto-verification of export incentive claims against GST filing data. RoDTEP claims reconciled with GSTR-1 export declarations automatically.
- eBRC Mode of Export field: “Mode of Export of Services” mandatory in eBRC from 1 May 2025 for all services exports – physical/electronic/digital mode must be specified.
- Annual IEC update deadline: 30 June 2026. Update profile on DGFT portal even if no changes – or IEC deactivated automatically.
- RoDTEP Appendix 4R/4RE: Major Changes via Notification No. 15/2026-27 dated April 30, 2026; revalidate your product’s RoDTEP rate.
- Export credit package: ₹7,295 crore interest subvention package for MSME exporters – check eligibility with AD bank for lower export credit interest rates.
16. Step-by-Step: First Shipment Export Guide
1
Get IEC – Apply on dgft.gov.in (₹500, 1-3 days). Register bank’s AD Code at your shipping port.
2
GST Registration + LUT – Register for GST if not already done. File LUT on GST portal (Form RFD-11) before first export.
3
Get RCMC – Register with relevant Export Promotion Council for your product category. Required for most FTP benefits.
4
HSN Classification – Verify 8-digit HSN for your product; check BCD (for imports), RoDTEP rate (Appendix 4R), any export restrictions.
5
Register on ICEGATE – icegate.gov.in; use IEC + PAN; obtain DSC (Class 3); register as exporter.
6
Prepare export documents – Commercial invoice, packing list, Bill of Lading (BL) / Airway Bill (AWB), Certificate of Origin, Phytosanitary/Quality certificates (if required).
7
File Shipping Bill on ICEGATE – Declare HSN, FOB value, GST LUT details, RoDTEP/Drawback claim intent. Customs examination → LEO (Let Export Order) → goods exported.
8
Realise export proceeds – Buyer pays within 9 months; bank generates eBRC; self-certify on DGFT portal. Claim RoDTEP credits and Drawback from ICEGATE.
9
File GST returns – Report export in GSTR-1 (zero-rated); claim ITC refund on inputs via Form RFD-01 on GST portal.
17. Step-by-Step: First Shipment Import Guide
1
Get IEC – Same as export; mandatory for all commercial imports.
2
Check import policy – Verify your product’s import policy on DGFT portal (Free / Restricted / Prohibited). Check for BIS Quality Control Order, anti-dumping duties, PSIC requirement (for steel/aluminium/electronics).
3
Calculate landed cost – CIF value + BCD + SWS (10% of BCD) + IGST. BCD and SWS are true costs; IGST is recoverable as ITC.
4
EPCG/AAS (if applicable) – Apply on DGFT before shipment if importing capital goods under EPCG or inputs under AAS. Cannot retroactively claim these benefits after goods arrive.
5
Register on ICEGATE – Same as exporter; required for Bill of Entry filing.
6
Appoint CHA (Customs House Agent) – Licensed CHA files Bill of Entry on your behalf; can handle examination, duty payment, release.
7
File Bill of Entry on ICEGATE – Before or on arrival; declare HS code, customs value, IEC, AD Code, import licence (if EPCG/AAS). Pay BCD + SWS + IGST online.
8
Out of Charge (OOC) – After customs clears → goods released. Take delivery from port/airport.
9
Claim IGST as ITC – IGST paid at import auto-reflected in GSTR-2B; claim as ITC in GSTR-3B for the month. Offset against GST output liability.
18. Practical Case Studies
Case 1: MSME Exporter Layering Multiple Benefits
GarmentCo (MSME, Surat) exports cotton garments. Annual export FOB: ₹5 crore. Uses imported fabric under Advance Authorisation. Has EPCG for cutting/stitching machines.
| Benefit | How Used | Annual Benefit (est.) |
|---|---|---|
| Advance Authorisation | Import cotton fabric duty-free (BCD 10-12%); IGST exempt under AAS. 12-month obligation period (new). | BCD saving: ~₹8-10L on ₹80L fabric import |
| EPCG | Imported ₹30L cutting machines at 0% BCD (normal 7.5% = ₹2.25L saving). 6× obligation = ₹13.5L FOB exports in 6 years – easily achieved. | ₹2.25L one-time saving |
| RoSCTL | Garment exporter claims RoSCTL (apparel-specific scheme for state + central levies); declared on Shipping Bill. | Approx 4-6% of FOB = ₹20-30L/year |
| GST LUT | Exports without paying IGST; claims ITC on inputs as cash refund. | ITC refund ~₹10-15L/year |
| Star Export House | After achieving USD 3M threshold: One Star Export House status → bank guarantee exemption in AAS/EPCG | Save bank guarantee costs + faster processing |
| Total annual benefit stack | ₹40-58L in combined incentives/savings on ₹5Cr export |
Case 2: IEC Annual Update Missed – Compliance Crisis
TechExport Pvt. Ltd. forgot to update IEC profile between 1 April and 30 June 2026. In July 2026, they have a ₹2 crore export shipment ready at port.
- Problem: IEC automatically deactivated after 30 June non-update → Shipping Bill filing on ICEGATE rejected (invalid IEC) → export delayed at port → storage charges accumulate → customer delivery SLA breached → penalty from overseas buyer
- Resolution: TechExport logged into DGFT portal → updated IEC profile (no changes, just reconfirmed) → IEC reactivated within hours → Shipping Bill refiled → goods cleared
- Loss incurred: 3-day port storage charges (₹45,000) + customer penalty clause triggered (5% of order value = ₹10 lakh). Total damage: ₹10.45 lakh for 10 minutes of work that should have been done before June 30.
- Lesson: Set a calendar reminder: IEC Annual Update — complete by 30 June every year, even if nothing has changed. GCA monitors this for all retainer clients.
19. Frequently Asked Questions
Q1. I sell handmade products on Etsy and ship internationally. Do I need IEC?
Yes – if you are shipping products internationally for commercial sale (even from India via courier), IEC is mandatory. Even small-scale handicraft sellers on Etsy, Amazon Global, or eBay who use India Post, DHL, FedEx, or other international shipping services need IEC. Apply online at dgft.gov.in for ₹500. Good news: small e-commerce courier exports under ₹25,000 per consignment can be cleared through simplified procedures (no formal Shipping Bill needed in some cases), but IEC is still required for the overall trade activity and for claiming any RoDTEP or LUT-based GST refund.
Q2. Can I claim both RoDTEP and Duty Drawback on the same export?
Yes – in most cases, you can claim both. In most cases, you can claim the All Industry Rate (AIR) of Duty Drawback along with RoDTEP, provided the Drawback rate doesn’t already account for the taxes covered by RoDTEP. Duty Drawback typically covers customs duty paid on imported inputs; RoDTEP covers other embedded taxes (electricity duty, mandi tax, fuel taxes at state level, stamp duty etc.) that are NOT covered by Drawback. Since they cover different taxes, they are not mutually exclusive. Declare both on your Shipping Bill at the time of export. Calculate both rates using Appendix 4B (Drawback) and Appendix 4R/4RE (RoDTEP) for your specific HSN code to maximise your benefit. GCA can calculate the optimal benefit for your product.
Q3. What is the export obligation period for EPCG now in 2026?
Under EPCG schemes, the time to fulfill export commitments has been reduced from 18 months to 12 months for most sectors. The overall export obligation (6× the duty saved in FOB exports) must still be met within 6 years from the date of issue of the EPCG Authorisation – this 6-year period hasn’t changed. What changed is the “obligation period” for completing EPCG application processing and commencement of exports – reduced to 12 months for most sectors. Capital goods-related obligations may still have 18-month provisions. Verify the specific terms in your EPCG Authorisation. Non-fulfillment of the 6× export obligation at the end of 6 years → pay customs duty on the capital goods imported + 15% interest p.a. from the date of import.
Q4. How do I claim IGST refund on exports?
Two routes: (1) LUT Route (Preferred): File LUT on GST portal (Form RFD-11) before exporting. Export without paying IGST. Accumulated ITC on inputs is refunded as cash via Form RFD-01 filed on GST portal. The refund is auto-processed based on GSTR-1 export declarations and GSTR-3B ITC data – typically 30-45 days if filed correctly. (2) IGST Paid Route: Export after paying IGST on the invoice value. The IGST paid is refunded based on shipping bill data shared between ICEGATE and GSTN – visible in your IGST refund status on the GST portal. Route 1 (LUT) is preferred as it avoids cash lock-up in IGST payment. File your LUT at the start of each financial year – it is valid for the entire year.
Q5. What happens if export proceeds are not received within 9 months?
Under FEMA, export proceeds must be realised and repatriated to India within 9 months of shipment. If proceeds are not received within 9 months: (a) Apply to your AD bank for an extension – most banks can grant extensions for genuine commercial reasons; (b) AD bank reports overdue export proceeds to RBI after the deadline; (c) FEMA compounding: if proceeds are not received and no extension is obtained → compounding with RBI (self-declaration of violation, payment of prescribed amount, regularisation); (d) IEC may come under watch list for trade policy compliance; (e) eBRC cannot be generated without realisation → impacts future incentive claims. For genuine payment disputes with foreign buyers: document all correspondence, dispute resolution steps, and apply for RBI extension. For exports where the foreign buyer is defaulting: ECGC insurance claim can be filed.
EXIM Compliance, IEC, RoDTEP, EPCG & Complete Trade Services – GCA
GCA provides end-to-end export-import support – IEC registration and annual updates, RCMC with relevant Export Promotion Council, GST LUT filing and ITC refund claims, RoDTEP rate calculation and ICEGATE claim management, Advance Authorisation applications, EPCG licensing and obligation tracking, Duty Drawback claims, eBRC certification, FEMA trade compliance, and Star Export House applications. Whether you are a first-time exporter or a large enterprise optimising incentive stacks – GCA handles the complexity. Pan-India, 100% digital.
📞 +91-9911369185 · ✉️ [email protected] · 🌐 guptachandanassociates.com
Disclaimer: Educational purposes only. Based on Foreign Trade Policy 2023-28, DGFT Notifications/Public Notices, Customs Act 1962, Customs Tariff Act 1975 (as amended by Finance Act 2025), CGST Act 2017, FEMA 1999, and FEMA trade regulations as available up to May 2026. IEC annual update deadline 30 June 2026 per DGFT guidelines. Duty Drawback rates from Ministry of Finance. AEO programme from CBIC. Star Export House criteria from FTP 2023-28. Schemes, rates, and deadlines change – always verify current status on dgft.gov.in, icegate.gov.in, and cbic.gov.in before acting.
