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Discuss the formalities involved in getting an export license.

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Before exporting goods, it is mandatory for exporters and export firms to fulfill the legal formalities, including securing an export license. 

The following are the formalities to obtain an export license. 

1. Bank account number: An exporter must open an account in a bank authorised by the Reserve Bank of India and get an account number. 

2. IEC code: An export firm must obtain an IEC (Importer Exporter Code) from the Directorate General for Foreign Trade (DGFT) or the Regional Import Export Licensing Authority by submitting documents such as the exporter’s profile, prescribed certificates, two attested photographs and details of non-resident interest. 

3. Registration-cum-membership certificate: An export firm should get itself registered with the appropriate Export Promotion Council, such as the Engineering Export Promotion Council (EEPC) and the Apparel Export Promotion Council (AEPC), and obtain a Registration-Cum-Membership Certificate (RCMC). 

4. Registration with ECGC: An export firm must also get itself registered with the ECGC (Export Credit and Guarantee Corporation) in order to protect itself from any uncertainties in payments brought upon by political or commercial risks.

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