Import Export Code (iec) registration
In this age of cut-throat competition, everyone wants to grow their business beyond the limits of the domestic market. Doing business globally is more easy now-a-days due to the advent of internet and technology. However, before going business globally, you need to follow several procedures and laws and get various registration and license. IEC (Import Export Code) license is one of such prerequisites when you’re thinking of importing into or exporting from India. It is also known as Importer- Exporter Code.
IEC (Import Export Code) is required by anyone who is looking to kick-start his/her import/export business in the country. It is issued by the DGFT (Director General of Foreign Trade). IEC is a 10-digit code that has lifetime validity. Predominantly importer merchants cannot import goods without the Import Export Code and similarly, the exporter merchant cannot avail benefits from DGFT for the export scheme, etc., without IEC. An Importer Exporter Code (IEC) is crucial business identification number which mandatory for export from India or Import to India. Unless specifically exempted, any person shall make no export or import without obtaining an IEC. For services exports, however, IEC shall not be necessary except when the service provider is taking benefits under the Foreign Trade Policy. Consequent to the introduction of GST, IEC being issued is the same as the PAN of the Firm. However, the IEC will still be separately published by DGFT based on an application. This article looks at the procedure for making an IE Code application in detail.
Importance of Import Export Code
Businesses have a great option to enter the international market with the export and import of the products and the services they are involved in. The IE code is an essential requirement while entering the global market as it supports the growth and development of the business to a certain extent. There are various advantages of getting an Import Export Code. Here we have listed a few of them:
1. International market unlocks: As the IE Code is a requirement for the import and export business, they allow the products to reach the global market. IE code makes the entry of the international Indian company smoother and opens doors for growth and expansion.
2. Online registration: The process to find the IE Code is entirely online and hassle-free with short document submission.
3. Less document requirement: It is not required to submit many documents to obtain an IEC.
4. Lifetime Validity: IE Code is a lifetime registration valid as long as the business exists. Hence, there are no issues with updating, filing, and renewing Import Export Code registration. The IE registration is valid until the company exists or the registration is not revoked or surrendered.
5. Reduces illegal goods transportation: The most basic requirement for the Import-Export code is that you need to provide authentic information. Without giving proper information, IE code cannot be obtained. This criterion makes the transportation of illegal goods impossible.
6. Availing Several Benefits: IE code has enormous benefits for importers and exporters. The registered business entities can get help through subsidies from the Customs, Export Promotion Council or other authorities. With LUT filing under GST, the exporters can make exports without paying taxes. If the exports are made with tax payment, the exporter can claim the refunds of the paid tax amount.
7. Compliance: Unlike other tax registration, the person carrying import or export does not require to fulfill any specific compliance requirements such as the annual filing or the return filings.
Benefits of IEC Code
1. Business Expansion- IEC facilitates global market access, enabling businesses to expand by introducing their products and services internationally.
2. Accessing Multiple Benefits- Companies can access various benefits for their imports/exports through DGFT, Export Promotion Council, Customs, etc., leveraging their IEC registration.
3. No Return Filing- IEC eliminates the need for filing returns. Once allocated, it maintains validity without necessitating any ongoing processes. Even export transactions are not obligated to submit returns to DGFT.
4. Simplified Procedure- Acquiring an IEC code from DGFT is straightforward, usually taking 10 to 15 days upon application submission. No evidence of export or import is required to obtain the Importer exporter code.
5. No Renewal Required- An IEC code remains effective for the entirety of an entity's existence and doesn't require renewal. Once obtained, it serves as an entity across all import and export transactions.
Eligibility for getting Import Export Code registration
The IEC code registration or Import Export License online is applicable all kind of business, however it must consider that such business must be dealing in import or export of goods or services. Followings are some entities can apply for IEC Code Registration:
1. Sole Proprietorship
2. Private limited companies
3. NGOs/ Trusts (Charitable Organization)
4. Partnership
5. One-person Company
6. Limited Liability Company, etc.
However, the IEC Code is not applicable for import & export of goods for personal use that is not linked to trade, manufacture or agriculture.
Validity of Import Export Code
The validity of an IEC certificate is for a lifetime. This means that once an IEC code is obtained, it is valid for all import or export transactions of the entity. There is no need to renew or update the IEC License after a certain period.
Documents required for Import Export Code registration
The Documents Needed for IEC Registration Are Relatively Fewer. Only a few documents are required, and they are listed below for a better understanding.
1. PAN card of the individual or company
2. Copy of the entity’s government ID (Driving license/Aadhar/Voter ID)
3. Incorporation certificate/Partnership deed
4. Personal or company’s current bank account statement
5. Address proof (Electricity bill/rent agreement/sale deed of the office location
6. Copy of cancelled cheque leaf of the current account
How to register for IEC? – A detailed IEC procedure
To obtain your Import Export license online, complete the simple IEC registration procedure outlined below.
Step 1: The Directorate General of Foreign Trade receives the online IEC application form in the format Aayaat Niryaat Form no. 2A. It is also possible to do it offline at the DGFT Regional office.
Step 2: Submit all required documents, including bank information and a DSC.
Step 3: The Import Export code will then be assigned, and the application will be processed further.
Step 4: Once the documents and application have been verified by the authorities, the import export license will be granted to the entity in the form of a soft copy
Exemption of Import Export Code (IEC)
1. Individuals who import and export goods for personal reasons unrelated to trade, agriculture, or manufacturing.
2. Parties/individuals who import/export goods to/from Nepal and Myanmar with a single consignment must not exceed Rs 25,000 through Indo-Myanmar border areas and China (via NamgayaShipkila, Gunji, and Nathula ports).
3. Exemption from obtaining IEC shall not be applicable for export of materials, organisms, special chemicals, equipments, and technologies (SCOMET), as listed in Appendix – 3, Schedule 2 of ITC.
4. Ministries/Departments of Central and State Governments
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