FREQUENTLY ASKED QUESTIONS (FAQ)
| What are the requirements to start a venture for International Trade ? |
First of all, you need to have an IEC i.e., IMPORTER EXPORTER CODE. Any bonafide person/ company starting a venture for International trade require IEC. IEC forms a primary document for recognition by Govt. of India as an Exporter/ Importer.
| What are the benefits of IEC and where to obtain an IEC ? |
On the basis of IEC, companies can obtain various benefits on their exports/imports from DGFT, Customs, Export Promotion Councils etc. For those having registered office in Karnataka, can submit applications at the following:
| • | The Joint Director General of Foreign Trade |
OR |
|
| • | Zonal Joint
Director General of Foreign Trade 4th floor, Shastri Bhavan Annex, 26, Haddows Road, Chennai – 600 014 Tamil Nadu (India) Tel: 044-28283404/08 Fax No. 044-28283403 zjdgft@nic.in |
| What are the major commodities being exported from India ? |
The top 15 commodities exported from India during 2008-09 are as under:
| • | Natural/cultured pearls, precious/semiprecious stones, precious metals clad with precious metal and articles thereof, imitation jewellery, coin |
| • | Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes |
• |
Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers and parts |
• |
Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof |
• |
Iron and steel |
• |
Organic chemicals |
• |
Vehicles other than railway or tramway rolling stock, and parts and accessories thereof |
• |
Articles of apparel and clothing accessories, not knitted or crocheted |
• |
Articles of iron or steel |
• |
Ores, slag and ash |
• |
Pharmaceutical products |
• |
Articles of apparel and clothing accessories, knitted or corcheted |
• |
Ships, boats and floating structures |
• |
Cereals |
• |
Cotton |
For details, refer to Trade Statistics
| What are the major export destinations of India ? |
The top 10 export destination countries of India during 2008-09 are:
 |
UAE |  |
UK |
 |
USA |  |
Germany |
 |
China |  |
Netherland |
 |
Singapore |  |
Saudi Arab |
 |
Hongkong |  |
Belgium |
For details, refer to Trade Statistics
| Where can I get details of foreign trade procedures ? |
One can get details of foreign trade procedures on www.dgft.gov.in
| What is HS Code? |
HS Code i.e. Harmonized System Code is a standard system in which all the products are categorized under different codes to identify the products internationally. In India 8 digit HS code is followed whereas in international market HS Code on 6 digit is followed.
| What are Intellectual Property Rights (IPR)? |
IPR is a general term covering patents, copyright, trademark, industrial designs, geographical indications, protection of layout design of integrated circuits and protection of undisclosed information (trade secrets).
| Who are responsible for administration of IPRs in the country ? |
Patents, designs, trademarks and geographical indications are administered by the Controller General of Patents, Designs and Trademarks which is under the control of the Department of Industrial Policy and Promotion, Ministry of Commerce and Industry. Copyright is under the charge of the Ministry of Human Resource Development. The Act on Layout Design of Integrated Circuits. Will be implemented by the Ministry of Communication and Information Technology.
| What is a patent ? |
A patent in an exclusive right granted by a country to the owner of an invention to make, use, manufacture and market the invention, provided the invention satisfies certain conditions stipulated in the law. Exclusivity of right implies that no one else can make, use, manufacture or market the invention without the consent of the patent holder. This right is available only for a limited period of time. However, the use or exploitation of a patent may be affected by other laws of the country which has awarded the patent.
These laws may relate to health, safety, food, security etc. Further, existing patents in similar area may also come in the way. A patent in the law is a property right and hence, can be gifted, inherited, assigned, sold or licensed. As the right is conferred by the State, it can be revoked by the State under very special circumstances even if the patent has been sold or licensed or manufactured or marketed in the meantime. The patent right is territorial in nature and inventors/their assignees will have to file separate patent applications in countries of their interest, along with necessary fees, for obtaining patents in those countries.
| What is the term of a patent in the Indian system ? |
(a) Five years from the date of sealing of the patent or seven years from the date of the patent (i. e. the date of filing the complete specification), whichever period is shorter, for an invention claiming the method or process of manufacture of a substance, where the substance is intended or capable of being used as a drug, medicine or food.
(b)Fourteen years from the date of patent in respect of any other patentable invention.
| Is a patent granted in one country enforceable in other countries ? |
No. There is nothing like a global patent or a world patent. Patent rights are essentially territorial in nature and are protected only in a country (or countries) which has (have) granted these rights. In other words,-for obtaining patent rights in different countries one has to submit patent applications in all the countries of interest for grant of patents. This would entail payment of official fees and associated expenses, like the attorney fees, essential for obtaining patent rights in each country. However, there are some regional systems where by filing one application one could simultaneously obtain patents in the member countries of a regional system; European Patent Office is an example of a similar system.
| What does the term 'Geographical Indications (GI)' stand for ? |
The term GI has been defined as "Geographical Indications", in relation to goods, means an indication which identifies such goods as agricultural goods, natural goods or manufactured goods as originating, or manufactured in the territory of a country, or a region or locality in that territory, where a given quality, reputation or other characteristics of such goods is essentially attributable to its geographical origin and in case where such goods are manufactured goods one of the activities of either the production or of processing or preparation of the goods concerned takes place in such territory, region or locality, as the case may be.
| Who can apply for GI's registration ? |
Any association of persons or producers or any organization or authority established by or under any law for the time being in force representing the interest of the producers of the concerned goods, who are desirous of registering geographical indication in relation to such goods shall apply in writing to the Registrar in such' form and in such manner and accompanied by such fees as may be prescribed for the registration of the geographical indication.
| What is ATA Carnet ? |
ATA Carnet is an International Uniform Customs document issued in 63 countries including India, which are parties to the Customs Convention on ATA Carnet. The ATA Carnet permits duty free temporary admission of goods into a member country without the need to raise customs bond, payment of duty and fulfillment of other customs formalities in one or a number of foreign countries.
For business people the ATA Carnet provides a simple and speedy way to travel abroad with business materials. It saves both time and money and this is a very important factor in international competition.
In India, Federation of Indian Chambers of Commerce and Industry (FICCI), is appointed as National Guaranteeing & Issuing Association for ATA Carnets.
| What are the main categories of goods temporarily imported under cover of ATA Carnets ? |
The main categories of goods temporarily imported under cover of ATA Carnets are the following:
Antiques, machinery, machine-tools, catering equipment, canned food, footwear, toys, computers, office equipment, transformers, electric generators, electrical/electronic and scientific equipment, surgical and dental equipment, jewellery and articles of precious metal/stones, "hi-fi", audio-visual, photographic and filming equipment, lasers, musical instruments and records, display material, aircraft, films, motor vehicles and accessories, racing engine machinery, heating and lighting equipment, agricultural machinery, furniture, crockery, paintings and other works of art, umbrellas, race-horses, suitcases, perfume, theatrical effects and sets, concert and musical instruments, leather and sports goods, clothing, yachts and boats, display stands.
The ATA Carnet service is available to business and sales executives, exhibitors at trade fairs and raveling professionals, such as film crews, architects, artists, engineers, entertainers, photographers, sports teams and many more.
Large companies, small companies, individuals on the move - all can benefit. Sales representatives with valuable samples and people with professional equipment are the largest users.
Virtually all goods can be included on a Carnet.
| Which items are excluded from the ATA Carnet System ? |
Perishable goods and items such as paint, cleaning materials, food, oils, leaflets and brochures, which are considered as "consumable items" and intended to be given away, disposed of, or utilized abroad, are excluded from the system as they would not ordinarily be re-exported.