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Export Trade Regulations: Key Requirements for International Exporters

Checking Your Understanding: Export Trade Regulations

Breakdown of the events provided along with their correctness:

Exporter/purchaser has to give Form-H to the seller/manufacturer so that sales tax is not charged on goods purchased, meant for export.

• Answer: True
• Explanation: Form-H is indeed required to exempt sales tax on goods purchased for export purposes.

Export of ready-made garments to countries like USA, Canada, and countries of the European Union does not require quota approval from AEPC.

• Answer: False
• Explanation: Quota approval from AEPC (Apparel Export Promotion Council) may still be necessary for exporting garments to certain countries.

It is not necessary for the exporter to obtain CNX number from RBI as IEC number has replaced CNX number.

• Answer: True
• Explanation: With the introduction of the Importer-Exporter Code (IEC) number, the need for CNX numbers has been eliminated.

The benefits provided in the current Exim policy are available only to the registered exporters having valid Registration cum Membership Certificate (RCMC).

• Answer: True
• Explanation: Benefits outlined in the Exim policy typically require exporters to hold a valid RCMC.

Exporter should register with Export Credit Guarantee Corporation of India to secure overseas payments, protecting from commercial and political risks.

• Answer: True
• Explanation: Exporters can register with the Export Credit Guarantee Corporation to mitigate risks associated with overseas payments.

The incidence of excise duty is attracted when the goods are cleared from the factory/warehouse of the manufacturer.

• Answer: True
• Explanation: Excise duty is typically levied when goods are cleared from the manufacturer's premises.

In respect of goods, which are not included in the negative list, exporters can export the cargo without obtaining any license.

• Answer: True
• Explanation: For goods not in the negative list, exporters generally do not need a license for exportation.

By understanding these statements and their correctness, exporters can navigate the regulatory landscape more effectively, ensuring compliance and maximizing the benefits available to them in international trade.