Introduction: Export Electric and Electronic Goods

Various licenses and export data for electrical and electronic equipment from India are required for the export of electrical and electronic equipment from India. There are more than 150 countries involved in the business of electrical and electronic equipment that do business with nations like the United States, France, the United Arab Emirates, Germany, and China and export goods worth a good deal for the goods being exported to such countries. The National Small Industries Corporation (NSIC), ELCINA, and the Electronic and Computer Software Export Promotion Council, under the Ministry of Commerce, assist in the export business of the process, increasing employment, and domestic demand for such goods in India; it also provides business opportunities for Indian export trends and aid in technological advancements. Let's dive deeper into the export procedure for electronic goods from India.

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Export Business of Electrics and Electronic Goods 

Starting a business selling electric and electronic goods necessitates the acquisition of goods and connectivity, as well as the management of connectivity with importing nations and offering electronic goods from India. This requires lots of documentation and methodology so that the entire export mechanism remains singular for the entire prospectus.

Licensing Procedure for the Export of Electric and Electronic Goods From India 

The following are the governing bodies for the export of goods from India,

• Import-export code (IEC)

The import-export code is the business identification code, a mandatory code for the export and import of goods until the goods come under an exception. Every business, including but not limited to limited liability companies, proprietorship firms, partnership firms, LLPs, HUFs, trusts, and societies even non-registered businesses require the IEC code for their businesses. The IEC is registered with the DGFT, making the processes simple and legal around the world.

• GST Certificate

The businesses are required to obtain a GST registration number, a unique business identification number, for the taxation purposes of the goods and services. Production and other legal compliances for the goods and services required for the export of electronic goods must be completed.

• BIS license

The manufacturing of products requires protection, standardization, and quality marketing for accountable, systematic, traceable, and accommodating consumers that create a sense of trust and assurance. BIS, as a national body established by the BIS Act of 1986, is in charge of product certification in India, ensuring product quality, safety, and trustworthiness. BIS certification is not a universal standard for products; rather, it is governed by Indian regulations. It is created for the harmonization and flow of quality through the testing and certification mechanisms.

The Compulsory Registration Scheme (CRS) was formed through the Department of Electronic and Information Technology (DeitY) and the Bureau of Indian Standards (BIS) for the protection of consumers through the standardization mechanism.

The Compulsory Registration Scheme prohibits the manufacture, sale, distribution, and import of goods that do not comply with the standard mark with the unique registration number obtained through BIS. 

The BIS certification of electronic and IT products comes under compulsory registration scheme, before bringing them to the market.

The following is the procedure for BIS CRS registration and online license applications:

• Submission of online application through registration at the BIS online portal.
• Testing and lab approval for BIS approval of the product generation of test requests through the login credentials and testing of products through the BIS recognized laboratory.
• Submission of testing report within 90 days of the submission of documents as per the checklist.
• The test report shall be scrutinized and submitted with the application through the BIS official portal
• Grant of license to the manufacturer to use and apply the mark and unique number of the electronic and IT products.

Documents Required for the BIS Licensing 

The following are the documents required for the BIS licensing of the electronic products through the CRS scheme:

• Self-declaration and conformity
• Test conformity by the third party testing laboratories of the product samples. 
• The name and address proof of the goods along with the scope of businesses. 
• Acknowledgement of the received product from the portal.
• Details of the documents through the authorized signatory.
• Testing of the BIS samples 
• Detailed model of the covered products.

The BIS registration is required for manufacturers of electronic goods participating in the CRS scheme, as is product registration prior to market launch.

The Indian standard specification requires registration to use the standard marks on the products and confirm the documents' specifications. 

The self-declaration of the product through BIS-based licensing the self-declaration confirms that the manufacturer and product quality, with the testing facilities, can be verified through the testing of the products within the prescribed time period.

The detailed documentation of the product depends on the quality of the goods to be manufactured and the standard of the documentation of the products. The registration samples are required to be submitted to the BIS-recognized laboratory.

The registration will be processed through the submitted documents that are in order, through the surveillance process.

The validity of the BIS licenses remains for the period of two years from the date of registration, even this varies from product to product, application fee, processing fee, annual fee, etc.

The BIS license will expire 90 days after the two-year expiration date. If that is not received from the licensee.

Documents Required For Export Of Electric And Electronic Goods From India

Depending on the country and the type of product, different documents are needed for export.  These include the item and the destination nation in addition to the tax, assessment, and quality standards.

• Bill of Lading (BL) Varies for the export bound cargos

The carrier that represents the contracts and receipts between the shipper and the carrier. The goods received through and the exporter must be in good condition and shippable goods.

• Packing list and commercial invoice

As per the government guidelines the documents required for the commercial invoice must be custom approved, the custom signature is must for the shipping of goods, this includes the cargo that contains more than one products, and preparation of the packaging list of the items that requires to be exported.

• Bill of Export

The customs department must clear the export bill through the Indian Customs Electronic Gateway (ICEGATE), which facilitates the electronic filing of shipping bills; the shipping bill is the mandatory document.

• Proforma Invoice

The advance payment of the committed customers, through the pro forma invoice, includes the product details, price delivery, and payment transactions etc. this works as an agreement among the buyer and seller on trust basis.

• Export purchase order

The order is confirmed with the exporter via the purchase order once the pro forma invoice is issued. It includes the details of the specific goods and shipping details, the cost, the currency, and other details.

• Certificate of Origin

The certificate of origin is the information that links the originating country of the goods with the place where it were manufactured, as documented in an affidavit and commercial invoice. The COO generation differs for the parcel product.

• Bill of Exchange

The bill of exchange is a written order instructing the buyer to pay the specified amount to the exporter via the bill of exchange in order to provide information about the payment of imported goods. 

• Letter of credit

If the buyer fails to pay the exporter by the due date, the letter of credit confirms the payment. It provides a bank guarantee to honor the purchase order.

• Quality check of the goods

There might be situations where the importer can ask for an investigation of the shipment of the goods. The quality inspection of the goods comes under the inspection of product quality. It is also affected by the packaging parameters. At the time of shipment of the products, the quality inspection certificate must be there.

Conclusion

According to PIB data, the export of Indian electronic goods has been steadily increasing year after year.  The key electronic products being exported are IT hardware, mobiles, consumer electronics, industrial electronic goods, etc., which are the key electronic products trending in the Indian market. The national policy on electronics positions India as a global market for electronic system design and manufacturing (ESDM) through the increment of the driving capabilities of the country and the development of core components through environmental and industry competencies globally. The government takes measures such as the production-linked incentive scheme (PLI) for the large-scale production of IT hardware and boosting the electronic ecosystem. The government has taken steps to boost exports. The pandemic has seen a consistent increase through several government initiatives and unilateral, bilateral, and multilateral agreements. The development of each district as an export hub, supporting export-oriented schemes, and a reduction in compliance through the rationalization of ease of doing business. The global market is demanding Indian products. Consult our expert team for more information on exports and related compliances.