Compliance with Laws & Regulations
- Adherence to domestic and international trade laws, including customs regulations.
- Compliance with export control laws (e.g., U.S. Export Administration Regulations (EAR), ITAR, EU trade laws).
- Ensuring products do not violate sanctions imposed by the UN, U.S., EU or other regulatory bodies.
- The company shall comply with all applicable Indian export laws, including:
- Foreign Trade Policy (FTP) issued by the Directorate General of Foreign Trade (DGFT).
- Customs Act, 1962 and Goods and Services Tax (GST) Act, 2017.
- Regulations by Reserve Bank of India (RBI) for foreign exchange transactions.
Product Classification & Documentation
- Correct classification of goods under the Harmonized System (HS) Code.
- If required, samples will be couriered.
- Proper documentation including commercial invoices, packing lists, export licenses and certificates of origin.
- Keeping accurate records of all export transactions for compliance and audits.
Mandatory documentation includes:
- Commercial Invoice & Packing List
- Shipping Bill (Filed with Indian Customs through ICEGATE)
- Bill of Lading / Airway Bill
- Certificate of Origin (if required)
- Export Declaration Form (EDF) for foreign exchange reporting to RBI
- Export License (for restricted items)
Licensing & Permits
- Requirement for obtaining the necessary export licenses.
- Procedures for restricted or dual-use goods that may need special permissions.
- No trade with banned or restricted countries as per DGFT and MEA (Ministry of External Affairs) notifications.
Screening of Customers & Partners
- Conducting due diligence on buyers, suppliers and intermediaries.
- Screening against denied party lists, watchlists and embargoed countries.
- All parties shall be screened against the DGFT Denied Entities List, RBI Watchlist and International Blacklists.
- KYC (Know Your Customer) process must be followed before entering into an export contract.
Payment & Financial Policies
- Accepted payment methods (e.g., Letter of Credit, advance payment, bank transfers).
- Compliance with anti-money laundering (AML) and financial regulations.
RBI guidelines for foreign exchange transactions:
- Advance Payment: Allowed but must comply with FEMA.
- Letter of Credit (LC): Preferred payment method.
- Realization of Export Proceeds: Payments must be received in 180 days (or as per RBI norms).
- E-BRC (Electronic Bank Realization Certificate) must be obtained for export incentives and GST refunds.
Logistics & Shipping Policies
- Selection of authorized freight forwarders and shipping agents.
- Ensuring proper packaging, labeling and insurance for exported goods.
- Compliance with Incoterms (e.g., FOB, CIF, EXW).
- The company shall use the Indian Customs Electronic Gateway (ICEGATE) for filing shipping bills and customs clearance.
Intellectual Property Protection
- Measures to safeguard trademarks, patents and proprietary technology.
- Restriction on sharing sensitive technical information without authorization.
- Maintain confidentiality and trade secrets.
Ethics & Anti-Corruption
- Prohibition of bribery, kickbacks and unethical trade practices.
- Compliance with the Prevention of Corruption Act (India), FCPA (USA) and UK Bribery Act.
- Employees and representatives must undergo anti-corruption training.
Risk Management & Contingency Planning
- Identifying and mitigating risks in international markets.
- Having contingency plans for trade restrictions, political instability or supply chain disruptions.
Employee Training & Responsibilities
- Regular training for employees on export compliance and best practices.
- Clear roles and responsibilities for export-related activities.
