Everyone wants to expand their business beyond the domestic market during this age of fierce competition. Doing business internationally, on the opposite hand, isn’t for everybody. Before going worldwide, you want to adhere to a variety of procedures and rules, similar to getting several registrations and licenses. When importing or exporting from India, an IEC (Import Export Code) license is every one of the necessities. Importer-Exporter Code is another name for it.
Anyone who wants to start out an import/export firm within the country will need an IEC (Import Export Code). The DGFT is the one who issues it (Director General of Foreign Trade). IEC may be a 10-digit code that’s valid for a lifetime. Generally, importers merchants cannot import products without an Import Export Code, and exporters merchants cannot make use of DGFT incentives like the export plan, etc., without an IEC.
When IEC Is Required?
- The customs officials require it when an importer must clear his shipments via customs.
- When an importer uses a bank to send money abroad, the bank requires it.
- The customs port requires it when an exporter has to send his shipments.
- Individuals, corporations, and firms can cancel cheque copies of existing bank accounts.
Steps Involved in IEC Registration
- Visit the DGFT website for further information.
- On the homepage, select the ‘Services’ tab.
- From the drop-down menu, choose ‘IEC Profile Management.’ A new window will appear.
- On the page, select the ‘Apply for IEC’ option.
- Select ‘Register’ from the drop-down menu. Fill in the relevant information and click the ‘Send OTP’ button.
- Click the ‘Register’ button after entering the OTP.
- You will receive a notice containing the temporary password after successfully validating the OTP, which you can alter after logging into the DGFT website.
- After completing the registration process on the DGFT website, log in using your user name and password.
- On the DGFT website, select the ‘Apply for IEC’ option.
- Fill out the application form (ANF 2A format), upload the necessary papers, pay the fees, and then click the ‘Submit and Generate IEC Certificate’ button.
- The DGFT will be in charge of generating the IEC code. Once the IEC code has been generated, you can print your certificate.
Documents needed to register for an IEC (Import Export Code)
The following documents are required for IEC Code Registration:
- A copy of somebody’s PAN card, a firm’s PAN card, or a company’s PAN card
- Voter id, Aadhar card, or passport copy of a personal.
- Cancel cheque copies of current bank accounts by individuals, companies, or firms.
- Copy of the premise or a duplicate of the rental agreement or a replica of the electrical bill
Benefits Of IEC Registration
Business Expansion: IEC can facilitate your take your services or products to a world market and expand your business.
Taking Advantage of a range of benefits: On the idea of their IEC registration, the businesses could receive many incentives for imports/exports from the DGFT, Export Promotion Council, Customs, and others.
There will be no filing of returns: The IEC doesn’t need returns to be filed. there’s no necessity to follow any type of protocol to keep up its validity once it’s been assigned. there’s no requirement to file any returns with the DGFT for export transactions.
Processing is easy: It’s relatively simple to urge an IEC code from the DGFT within 10 to fifteen days of submitting an application. it’s not necessary to submit proof of any export or import so as to get an IEC code.
There is no requirement for renewal: IEC codes are valid for the lifetime of an entity and don’t have to be renewed. After obtaining it, an entity might apply it to all or any export and import transactions.
Cases Within Which The Import-Export Code (IEC) Isn’t Required
According to the government’s most up-to-date circular, IEC isn’t required for all GST-registered traders. altogether of those circumstances, the trader’s PAN is going to be interpreted as a replacement IEC code for import and export purposes. If the products being exported or imported are for private use and not for commercial purposes, an Import Export Code (IEC) isn’t required. Notified Charitable Institutions don’t require an Import Export Code for export/import done by Government of India Departments and Ministries.
Akshat is a third year law student , with a core interest in Corporate Laws . Passionate about learning different skills and his favorite guilty pleasure is Binge-watching web series .