Import & Export Cargo Services: Move Your Goods Across Borders — Compliantly, Swiftly, and Without Costly Surprises

What is the difference between Import & Export Cargo Services and Freight Forwarding?

Freight forwarding focuses on the physical movement of cargo – booking carriers, arranging transport, and managing logistics. Import & Export Cargo Services are broader – they encompass customs clearance (CHA services), DGFT licence management, export benefit claims (duty drawback, RoDTEP), trade finance coordination, and EXIM compliance advisory. Many providers offer both, but pure EXIM cargo specialists bring deeper regulatory knowledge that pure logistics companies may lack.

What is an IEC (Import Export Code) and how do I get one?

An IEC (Import Export Code) is a 10-digit code issued by DGFT, mandatory for any entity importing or exporting goods from India. It is linked to your PAN and GST. Application is fully online via the DGFT portal (dgft.gov.in) – fee is ₹500. IEC is a one-time registration with no renewal requirement. Many Trade4Asia-listed EXIM agents offer IEC registration as a value-added service for new exporters, typically at ₹3,000–₹8,000 including professional fee.

What is duty drawback and how does it benefit exporters?

Duty Drawback is a refund of customs duties and central excise duties paid on imported inputs used in the manufacture of exported goods. It is available as All Industry Rate (AIR) drawback – a fixed percentage of FOB export value published by CBIC in an annual schedule – or Brand Rate drawback for product-specific claims. Drawback rates typically range from 1% to 10% of FOB value depending on the product. Combined with RoDTEP, total export benefit can reach 2–8% of export turnover, critically important for MSME exporters' margins.

What is RoDTEP and how is it different from MEIS?

RoDTEP (Remission of Duties and Taxes on Exported Products) replaced MEIS (Merchandise Exports from India Scheme) from January 2021. While MEIS was a direct incentive scrip, RoDTEP is a remission of embedded taxes and duties not covered by drawback or GST refund (such as state levies, mandi taxes, electricity duty on fuel). RoDTEP credits are issued as transferable electronic scrips on ICEGATE, usable to pay Basic Customs Duty on imports. Unlike MEIS, RoDTEP is WTO-compliant. Rates range from 0.3% to 4.3% of FOB value.

What is an EPCG licence and when should I apply for one?

EPCG (Export Promotion Capital Goods) licence allows import of capital goods at 0% Basic Customs Duty, subject to an export obligation of 6x the duty saved within 6 years. It is ideal for manufacturers who need to import machinery, equipment, or technology for export production. The duty saving can be substantial – for a ₹5 crore machinery import with 7.5% BCD, EPCG saves ₹37.5 lakh upfront. The obligation must be fulfilled through direct exports on shipping bills endorsed with the EPCG licence number.