If you’re an Indian exporter looking to start selling globally on Amazon, getting your legal and tax compliance right is the first and most important step. Understanding and fulfilling these requirements will help you launch smoothly, avoid penalties, and make the most of benefits like LUT and RODTEP available for exporters.
Why Compliance is Critical for Amazon Global Selling?
Selling on Amazon’s international marketplaces involves dealing with customs, GST, FEMA, and other regulations. As an Indian seller, you must set up the right legal structure and obtain necessary registrations to:
- Ensure seamless customs clearance
- Protect you from penalties and delays
- Enable GST benefits like LUT and export tax refunds
- Allow you to claim incentives like the RODTEP scheme
- Maintain accurate financial records for cross‑border transactions
Essential Legal & Tax Prerequisites for Indian Exporters
Import Export Code (IEC) Registration
- IEC is a 10‑digit code issued by DGFT required for import and export.
- Why it’s important? Enables customs clearance and access to export benefits and incentives.
GST Registration & Letter of Undertaking (LUT)
- GST registration is mandatory for exporting goods/services.
- Filing an LUT allows you to export without paying IGST, saving working capital.
Bank Account & FIRC Compliance
- Maintain an authorized bank account for receiving foreign inward remittances.
- Obtain a FIRC or e‑FIRC from your bank as proof of export earnings, making it FEMA‑compliant.
FEMA Regulations for Exporting Globally
- Export transactions must adhere to the Foreign Exchange Management Act (FEMA) guidelines.
- Proper classification of payments and maintenance of documents help in compliance.
Registration for Export Benefits like RODTEP
The Remission of Duties and Taxes on Exported Products (RODTEP) scheme allows exporters to claim refunds of hidden taxes and duties embedded in their products, making pricing more competitive globally.
Additional Certifications & Export Licenses
Depending on your product category and target country, you might require:
- FSSAI Registration for food products
- BIS Certification for electronics
- Export permits and No Objection Certificates (NOCs) for regulated goods
- International certifications like CE Marking or FDA Registration for certain markets
Final Thoughts: Build a Strong Export Compliance Framework
Starting your global selling journey on Amazon is an exciting opportunity, but it must be backed by a solid understanding of legal and tax obligations. By setting up the right compliance structure — from obtaining an IEC to GST LUT and FEMA compliance — you can launch smoothly and focus on growing your international sales.
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