IEC (Import Export Code) is required by any individual who is going to launch his/her import/export business in the nation. All the Importers / Exporters are required to remark their Import Export Code while cross selling of products and/or Services from / in India.
DGFT (Directorate General of Foreign Trade) has been authorized to issue the Import export license or certificate. The import export license or certificate includes the ten digit Import export code. Ministry of commerce and industry, the regulatory body is responsible for the origination of dealing policies, governing agenda and issuance of licenses.
The Reserve bank of India also make its mandatory or compulsory while doing money transfer and sending money outside India/abroad to say their Import export code, further the Department of Custom also hunt down IEC before clearance of the products from overseas/ abroad.
Once the Import Export Code has been issued by the department and remains valid for the entity throughout its existence and doesn’t require for any renewal or to file again may be used with none issue. By and huge, importers merchant can’t import goods without the Import Export Code and correspondingly, the exporter vendor can’t avail benefits from Directorate General of Foreign Trade for the export scheme, etc. without IEC.
Key benefits of Import export code
It helps to increase several advantages, subsidies from the regulatory authority of IEC based on their registration.
The process of IEC Registration is very easy and the IEC certificate is generated after submitting the application. There is no need to establish any proof of any import export being done by the applicant.
Once IEC issued does not require any renewal or to file again, can be used by the entity throughout its existence without any issue. IEC have lifetime validity. Once, IEC code is obtained, it can be used for all import export transactions.
IEC registration help the organizations to serve as a legal proof when the organization require to submit any legal documents to the bank for opening bank current account.
Once IEC certificate is obtained, there is no need to file the revenues whether the entity doing any cross selling of products or services or not.
The IEC Registration is required in the following situations:
1. In case where an importer wants his shipment clear from the customs, then the IEC is needed by the customs authorities.
2. In case where an importer sends money abroad through banks then it’s needed by the bank.
3. In case where an exporter needs to send his shipments then IEC is needed by the customs port.
4. When the money is received in the bank account of the exporter in foreign currency in that case this certificate is required by the banks.
Documents required for export and import:
Director’s KYC which include Pan card, Aadhar Card, passport size photo, mobile number and email id.
Copy of electricity bill of the premises which should not be later than two months.
GST Certificate (Optional).
Scanned copy of proof of incorporation/establishment/ registration for the specified entity. The above supporting document is necessary for Registered Society, HUF, Partnership, Trust, Others.
Pan of company/individual/ partnership firm/ LLP
You are needed to submit the scanned copy of RBI approval letter if an applicant is Non-Resident Indian (NRI) or there is Non-Resident interest in the Company/firm.
In case of Company, Class 2 DSC of the organization is required.
How to get IEC code:
Create the Login.
Fill the IEC application form mentioning the business, partners/directors/proprietor details, (according to registration of the entity).
Ancillary documents for IEC Permit has to be uploaded like copy of Bank statement or cancelled cheque, latest electricity bill, Aadhaar card.
Payment will be online.
Affix Class 2 DSC of the organization in case of Company or organization.
After the DSC affixed, Application of IEC will be executed by the regulatory authority of DGFT.
The entity will get their Import export code certificate on their registered mail.
Types of DSC acceptable for IEC application:
In case of HUF & Individual, Individual based Class 2 or 3 DSC and the name should match with the individual and organization. In case of other type of organization, Organization based class 2 or 3 DSC and the name should match with that of Director/ Partner/ Managing partner/ Managing Director as in IEC application
Exemption of IEC
The individual involved in import and export of products for individual reasons and not related to trade, horticulture and manufacturing are absolved from getting IEC registration. People who export or import goods to or from Nepal and Myanmar through Indo-Myanmar fringe zones and China with single transfer which does not surpass in Indian cash Rs.25,000 doesn't require IEC.
It is important to obtain IEC registration in order to import and export goods. It passes on the seller code details with the port through which the things or administrations are being imported or exported. Illicit vehicle of products is confined, and subsequently IEC helps in diminishing it. Since, it’s practically difficult to induce import export code without giving the complete data of the items being imported or traded. Custom authorities will only clear your shipment as an importer if you have got an IEC number. IEC registration is required when an exporter receives payment in foreign currency directly into his bank account. The IEC registration helps a government of the other countries in verifying the trader. In today’s scenario of ever-growing competition, businesses, so as to survive their substitutes available within the domestic market, are stepping out of their local presence. With back to back innovations and therefore the generation of recent ideas in business, the emergence of e-commerce, business operating in local limits finds it important to work globally by stepping abroad.
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