What Does The Import-Export Code Mean?
Import Export Code (additionally referred to as IEC code) is a 10-digit identity number this is issued through the DGFT (Director General of Foreign Trade), Department of Commerce, Government of India. Companies and agencies ought to gain this code to begin an enterprise that offers import and export in the Territory of India. An Importer Exporter Code (IEC) is a key enterprise identification number that is obligatory for export from India or Import to India. No export or import will be made through any character without acquiring an IEC until mainly exempted.
Situations Where IEC is Required
- When an importer has to clean his shipments from the customs then it`s wished through the customs authorities.
- When an importer sends money abroad through banks then it’s needed by the bank.
- When an exporter needs to ship their shipments, the customs port needs them.
- When an exporter receives money in foreign currency directly into their bank account, the bank requests it.
Steps Involved in IEC (Import/Export Code) Registration
The following is the procedure for applying for an import-export code:
- Create application form No. Aayaat Niryaat. 2A format.
- Apply with the concerned Regional Office of the Director-General of Foreign Trade.
- Collect your documents, such as proof of address, ID proof, etc. as well as bank details and certificates related to Aayaat Niryaat form 2A
- After completing the application, attach the instrument and submit the form to the Director-General of Foreign Trade with a digital signature certificate.
- Pay the fees applicable to the registration of import and export codes.
- The government will send the import-export code as an electronic copy once your application is approved.
Documents required for IEC Registration (Import Export Code)
The following documents are required to register the IEC code:
- A copy of a PAN card of an individual, business, or firm.
- A copy of your personal voter ID or Aadhar card or passport.
- Individuals or companies or firms cancel cheque copies of current bank accounts.
- Building leases or copies of electricity bills of the premises.
- A self-addressed envelope for sending IEC certificates by registered mail.
Benefits of IEC Registration
IEC provides services or products to the global market and supports you to grow your business.
-Claim Multiple Benefits
IEC registration allows companies to claim multiple benefits of imports and exports from DGFT, the Export Promotion Council, Customs, and more. Based on registration.
-No Return Filing
The IEC does not require the submission of any returns. Once granted, there is no need to follow any kind of process to maintain its effectiveness. In addition, there is no obligation to report export transactions to DGFT.
Obtaining an IEC code from DGFT within 10 to 15 days of application is very easy. You do not need to submit proof of export or import to obtain an IEC code.
-No Need For renewal / No update required
The IEC code is valid for the life of the entity and does not need to be renewed. Once received, the company can use it for all import/export transactions.
Cases Where Import-Export Code (IEC) is Not Mandatory
According to the latest government notice, IEC is not mandatory for
All traders registered with the GST. In all of these cases, the dealer’s PAN will be applied as a new IEC code for imports and exports. An Import/Export Code (IEC) is not required if the goods being imported/exported are for personal use and are not used for commercial purposes. Imports and exports are carried out by the ministries and agencies of the Government of India. The notified non-profit does not need to request an import/export code.
Is IEC mandatory?
Yes. An Importer-Exporter Code (IEC) is an important company identification number required for importing into or exporting from India. Individuals/organizations may not export or import without obtaining an IEC unless specifically exempt from tax. However, IEC is not required to export services unless the service provider claims profits under foreign trade policies.
Time to get the IEC code?
An IEC will be automatically generated when your online application is submitted with the relevant fees and required documentation. DGFT will send the applicant a notification of the IEC assignment via SMS and email, along with a hyperlink to download and print the e-IEC.
Can individuals obtain IEC?
Yes, sole proprietors can obtain IEC registration. Individuals can apply for IEC registration using either the company name or the individual’s name.
Do you need a Digital Signature Certificate (DSC) to apply for IEC?
A digital signature certificate (DSC) is not required when applying for an IEC. IEC applications can be signed with Aadhaar certification. DSC was introduced in the IEC to enhance the IEC issuance and modification process.
Do you need to update your IEC profile every year?
Yes. The IEC profile should be updated annually. If the IEC profile has not been updated, it will be deactivated. The deactivated IEC can be reactivated after a successful update. However, resumption is subject to the condition that no other measures shall be taken in order to violate the provisions of foreign trade policy.
How do you print your IEC certificate?
The IEC certificate can be printed as follows:
- Access the DGFT website
- On the home page, click the [Services] tab.
- Select the IEC Profile Management option from the drop-down list.
- A new page will open. Click the Print IEC option on the page.
- Check the entry and click the [Print IEC] button.
Shubham is a 5th sem. student Who is pursuing B.A.LL.B . He has a joyful character and is a very curious boy who
who always tends to learn new things especially in technology & law background.