Trade Compliance Checklist

Verify compliance across all dimensions of international trade — DGFT, RBI, customs, sanctions screening and end-use checks — before executing any export or import transaction.

DGFT & Export Licensing

IEC code is active and updated with current bank / address detailscritical

Product is not on SCOMET restricted list without a valid licencecritical

Export licence obtained where required (munitions, dual-use, SCOMET)critical

RCMC from relevant Export Promotion Council obtained for incentive claims

EPCG / Advance Licence obligations tracked and within export timeline

RBI / FEMA Compliance

AD Code registered at port of shipment with authorised bankcritical

Export realization expected within 9 months (FEMA timeline)critical

BRC (Bank Realisation Certificate) filed for previous shipments

No overdue export proceeds beyond 9 months without RBI extension

ODI/FDI compliance checked if exporting to a related party

Sanctions & End-Use Screening

Buyer / country not on OFAC, EU, UN or Indian MEA sanctions listcritical

End-use certificate obtained for dual-use or restricted goodscritical

No diversion risk — destination not known for re-export to sanctioned nations

AML / KYC on foreign buyer completed

Customs & Documentation

Correct HS code declared — classification verified, not guessedcritical

Transaction value declared accurately — no under-invoicingcritical

Packing list, invoice and BL values match exactly

Letter of Undertaking (LUT) filed for zero-rated GST exports

GSTR-1 export entries filed and matched with Shipping Bills

Result

Section	Items	Compliance

Notes & assumptions: Checklist covers general trade. Sector-specific rules (pharma, defence, chemicals) may require additional compliance. Consult a licensed CHA or trade compliance consultant.

Disclaimer: This tool provides an indicative estimate for general planning only and is not professional, legal, financial, medical or engineering advice. Reference values are editable defaults that vary by location, vendor, regulation and date. Verify critical figures with a qualified professional. Varada Nexus accepts no liability for decisions made using this tool.

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FAQ

What is SCOMET and why does it matter?

SCOMET is India's dual-use export control list. Exporting SCOMET items without a licence from DGFT is a criminal offence under FTDR Act, 1992.

What happens if export proceeds are not realised within 9 months?

Apply to RBI/AD bank for extension with valid reasons. Non-realisation beyond permitted period attracts FEMA penalties and can affect IEC and credit facilities.

Do I need to screen every buyer for sanctions?

Yes. Exporting to a sanctioned entity — even unknowingly — can result in severe penalties, export privilege denial and criminal prosecution.