Know The Regulations For Gold Export Business From India

Gold, the precious metal has always been considered auspicious in India and gained popularity among Indians. But since last year, investors were much concerned to diversify their portfolios and took shelter under gold, as the gold rates were at all-time high levels. Gold import and export businesses also grew simultaneously. Gold jewellery designs and making are graceful works and many Indians depend on this business. Not all of them are confined in the domestic markets but export their gold jewelleries abroad. So, many Indian entrepreneurs wonder, how to start a gold export business from India? Here are some rules and regulations to remember before starting a gold export business, mentioned by the Gem and Jewellery Export Promotion Council (GJEC), in India.

Rules for opening a firm

Starting an export firm is a lengthy process and the entrepreneur needs to follow stringent regulations for this. At first, you need to choose the nature of the business entity as a proprietorship, partnership, limited liability partnership, a private company, limited company, Trust, Registered Society, and HUF, then get the business registered. In addition to that, choosing the mode of doing exports operations like - as a merchant exporter, manufacturer exporter or merchant cum manufacturer exporter is important. The firm is also required to register with the Goods and Services Tax Department, India.

Account opening, license

An account in the name of the proposed business firm will have to be opened to apply for the allotment of Importer-Exporter Code (IEC) No, and a PAN card will be necessary here. It will be the legal license for the firm for export business. GJEC informs, "An application for IEC is filed online at https://dgft.gov.in/CP/ IEC Profile Management as per ANF 2A." A current account with a bank authorized to deal in Foreign Exchange will have to be opened, while an Authorised Dealer Code (AD code) will be issued by the bank to register with the customs.

Custom rules

The EDI system of the Ice Gate portal does not allow the generation of the shipping bill without an AD Code. Also, it is an important custom rule to remember that a PAN-based Business Identification Number (BIN) should be obtained from the Customs before filing of shipping bill for clearance of export goods. GJEC added, "The exporters are essentially required to obtain Registration cum membership certificate (RCMC) granted by the concerned Export Promotion Councils/ FIEO/ Commodity Boards/ Authorities", to avail authorization to import/ export/ any other benefit or concession under FTP 2015-20. At last, your firm should apply to an insurance company for marine/air insurance cover.