Regulatory Advisory & Trade ComplianceTrade Compliance in India
Every business that imports or exports goods in India operates within a regulatory framework administered by the Directorate General of Foreign Trade and the Central Board of Indirect Taxes and Customs. Compliance with this framework–from IEC registration and Foreign Trade Policy licensing through to export documentation and customs audit response–is not optional and the consequences of non-compliance extend from denied shipments to penalties and prosecution. ATB Legal advises on the full spectrum of India trade regulatory compliance.
Trade compliance in India is not a back-office function–it is a frontline commercial requirement. A single classification error, a lapsed licence, or an undocumented shipment can hold up an entire supply chain.
OUR TRADE COMPLIANCE SERVICES
Trade Compliance & Regulatory Advisory in India
India’s trade regulatory framework is administered primarily by two authorities: the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, which oversees import and export policy, licensing, and export promotion schemes; and the Central Board of Indirect Taxes and Customs (CBIC), which handles customs duties, classification, valuation, and border enforcement. For businesses trading internationally, compliance with both frameworks is mandatory and interdependent–DGFT prescribes what may be traded and the applicable conditions, while CBIC determines duty treatment and enforces compliance at the point of import or export. ATB Legal’s trade compliance practice covers the full regulatory lifecycle–from initial IEC registration and DGFT authorisation through to export documentation, compliance audits, and responses to regulatory notices.
IEC Registration, DGFT Licensing & Export Authorisations
The Import Export Code is the primary registration requirement for any business importing or exporting goods in India. It is issued by DGFT and a prerequisite for customs clearance, receipt of export proceeds through the banking system, and access to export promotion schemes. Alongside IEC, businesses may require DGFT licences and authorisations depending on the goods traded–including Advance Authorisation for duty-free import of inputs, Export Promotion Capital Goods (EPCG) authorisation for capital goods at concessional duty, and specific licences for restricted or canalised items. ATB Legal manages IEC registration, DGFT licence applications, authorisation procurement, and the export obligation management and redemption that follow authorisation utilisation.
Foreign Trade Policy Compliance
India’s Foreign Trade Policy, issued by the DGFT typically for a five-year period, sets out the regulatory framework for imports and exports covering prohibited and restricted items, export promotion schemes, export obligation requirements, and the status holder programme for recognised exporters. The current FTP 2023–28, notified in April 2023, introduced significant changes to Advance Authorisation, EPCG procedures, and the Towns of Export Excellence programme. ATB Legal advises businesses on their obligations and opportunities under the current FTP, assists in scheme enrolment and authorisation applications, and manages ongoing compliance obligations, including export obligation fulfilment and Export Obligation Discharge Certificate (EODC) procurement, that authorisations carry.
Export and Import Documentation Compliance
Every international trade transaction generates a set of mandatory documents–commercial invoice, packing list, bill of lading or airway bill, certificate of origin, and, for regulated goods, specific licences or permits. Errors in these documents – incorrect HS code descriptions, inconsistencies between the invoice and the bill of entry, or absent origin documentation – are among the most common causes of customs delays, duty reassessment, and penalty proceedings. ATB Legal reviews export and import documentation for compliance before shipment, advises on documentary requirements for specific goods categories and destination markets, and prepares responses to DGFT and CBIC examination reports and show-cause notices.
Customs Audit Defence and Adjudication
India’s customs authorities conduct post-clearance audits reviewing classification, valuation, and origin claims across prior transactions. An audit can result in duty demands, interest, and penalties where errors are identified. We provide pre-audit compliance reviews to identify and remediate gaps before a formal audit is initiated, and represents clients through customs audit proceedings–managing CBIC correspondence, preparing responses to notices, and advising on compounding or settlement options where duty shortfalls are established. Where disputes escalate, ATB Legal manages adjudication and appellate proceedings before the Commissioner of Customs, CESTAT, the High Courts and any other relevant authorities.
FAQFrequently Asked Questions- Trade Compliance
What is the Import Export Code and who needs one?
The Import Export Code is a 10-digit number issued by DGFT and is mandatory for any business or individual importing or exporting goods in India. It is required for customs clearance, banking repatriation of export proceeds, and access to export promotion schemes. Most businesses now use their PAN as their IEC under the current system. There is no need to renew the IEC once obtained.
What is the Foreign Trade Policy and what obligations does it create?
India’s Foreign Trade Policy is issued by DGFT for a five-year period and sets out the regulatory framework for imports and exports–covering prohibited and restricted items, export promotion schemes, export obligation requirements, and the status holder programme. Businesses operating under DGFT authorisations carry ongoing compliance obligations, including export performance requirements and documentation submission deadlines, that must be managed actively.
What is Advance Authorisation and how does it work?
Advance Authorisation is a DGFT licence allowing duty-free import of inputs physically incorporated into an export product. The authorisation specifies permissible inputs, quantities, and the export obligation–the value or quantity of finished goods that must be exported within the prescribed period. Failure to fulfil the export obligation results in duty recovery with interest and penalty.
What documentation is required for an international trade transaction?
Core export documentation includes the commercial invoice, packing list, shipping bill or airway bill, and a Certificate of Origin where required for FTA preferential treatment. Import documentation includes the bill of entry, commercial invoice, packing list, and any applicable licence or permit. Additional documents–phytosanitary certificates, BIS registration, drug licences–are required for regulated goods. Errors or inconsistencies are a primary trigger for customs examination and duty reassessment.
What happens during a customs post-clearance audit?
CBIC officers may audit an importer or exporter’s records post-clearance to verify classification, valuation, and origin claims across prior transactions. Audits can result in duty demands, interest, and penalties where shortfalls or errors are identified. Pre-audit compliance reviews and learned representation through the audit and adjudication processes can strengthen your position.
What are the consequences of non-compliance with DGFT and CBIC requirements?
DGFT non-compliance consequences include IEC suspension, denial of authorisations, and recovery of duty benefits. CBIC non-compliance consequences include duty demands with interest, penalties under the Customs Act 1962, seizure of goods, and prosecution. Commercial disruption–held shipments, denied clearances–typically exceeds the direct financial penalty for businesses operating at scale.
Uncompromising QualityWhy CHOOSE ATB LEGAL?
- DGFT and CBIC Practice Depth: Direct engagement experience with DGFT and CBIC–managing IEC registrations, authorisation applications, documentation reviews, audit responses, and appellate proceedings as active mandates.
- Full Regulatory Lifecycle: Trade compliance advisory from initial IEC registration through to post-clearance audit defence–not just policy interpretation, but implementation and enforcement response.
- Preventive Approach: Pre-shipment documentation reviews, pre-audit compliance checks, and internal compliance framework design–addressing risk before it becomes a customs notice or a duty demand.
- FTP Scheme Management: Advance Authorisation, EPCG, and export promotion scheme enrolment and ongoing obligation management–ensuring that duty benefits are properly earned, documented, and discharged.
- Dispute Resolution Integration: Where compliance issues escalate to adjudication, CESTAT, or High Court proceedings, ATB Legal’s dispute resolution capability provides seamless transition from compliance advisory to litigation support.
Meet The Core Team
Our Team of
Lawyers and Experts
LLM, MBA
George Mathew
CA
Pauls MI
LLM
Vipul Kulshreshtha
Micro Case Studies
Representative Experience
Manufacturer Exporter–Advance Authorisation and Export Obligation Management
Advised a mid-size manufacturer-exporter on obtaining Advance Authorisation for duty-free import of raw material inputs. The mandate covered DGFT application preparation, input-output norm negotiation, authorisation procurement, and export obligation management–including documentation for EODC application following fulfilment of the export commitment within the prescribed period.
GCC Importer–Customs Audit Response and Compounding Settlement
Represented a GCC-based importer's India subsidiary in responding to a CBIC post-clearance audit covering two years of import transactions. The audit identified classification discrepancies on a product line assessed at a lower duty rate. ATB Legal prepared the technical classification response, engaged with the audit officer on the applicable tariff headings, and negotiated a compounding settlement that resolved the duty shortfall without escalation to adjudication.
Technology Company–Export Documentation and FTP Compliance Framework
Advised a technology services company on establishing an export documentation and trade compliance framework for cross-border software and services transactions with UAE and GCC clients. The mandate covered IEC registration, DGFT service exporter registration, invoicing and banking documentation review for FEMA compliance, and a compliance manual covering documentation obligations for each category of cross-border transaction.
Advised a mid-size manufacturer-exporter on obtaining Advance Authorisation for duty-free import of raw material inputs. The mandate covered DGFT application preparation, input-output norm negotiation, authorisation procurement, and export obligation management–including documentation for EODC application following fulfilment of the export commitment within the prescribed period.
GCC Importer–Customs Audit Response and Compounding Settlement
Represented a GCC-based importer's India subsidiary in responding to a CBIC post-clearance audit covering two years of import transactions. The audit identified classification discrepancies on a product line assessed at a lower duty rate. ATB Legal prepared the technical classification response, engaged with the audit officer on the applicable tariff headings, and negotiated a compounding settlement that resolved the duty shortfall without escalation to adjudication.
Technology Company–Export Documentation and FTP Compliance Framework
Advised a technology services company on establishing an export documentation and trade compliance framework for cross-border software and services transactions with UAE and GCC clients. The mandate covered IEC registration, DGFT service exporter registration, invoicing and banking documentation review for FEMA compliance, and a compliance manual covering documentation obligations for each category of cross-border transaction.
Free Legal Consultation
ATB Legal advises Indian exporters, importers, and foreign-invested entities on the full spectrum of India trade regulatory compliance–IEC, DGFT licensing, FTP scheme management, customs documentation, and audit defence.