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In these developing era of competition, everybody is trying to grow their businesses beyond the limits of national market. However, taking business to global level, there are numerous things that needs to be taken into consideration for commencing an organization and get Import Export code Registration and License. Obtaining the Import-Export code registration is one such needful to start a small business of Importing or exporting from India.
What is an IEC (Import Export Code)?
The Importer-Exporter Code is a unique 10-digit code for business identification that is absolutely compulsory for Imports or Exports while clearance in custom. After the launch of Goods and Service Tax in India, Import Export Code is the same as the Permanent Account Number of the firm. It is mandatory for a small business to obtain, in order to expand its business throughout the world. Those who wants to facilitate cross-border services need not avail IEC except where such activities assure advantages under FTP for the service provider.
Who is the regulatory authority to issue Import Export Code?
The Import-export code is issued from the office of Director General of Foreign Trade (DGFT), Ministry of Commerce for import-export business in India.
Advantages of Import Export Code Registration
- Opportunity to expand Business: IEC assists you in taking your services or product to the global market and grow your businesses internationally.
- Availing numerous advantages: The Companies could avail several advantages of their imports/ exports from the Director General of Foreign Trade, Custom Authorities, Export Merchandising Council etc., on the basis of their IEC registration.
- No Return Filing: There is no requirement of filing any return under Import Export Code. If the allotment of IEC once done, then there is no requirement to follow any sort of processes for sustaining its validity. Even for export transactions, there isn’t any need for filing of any returns with the concerned authority.
- Processing with an ease: It is truly easy to obtain IEC code from the DGFT within a period of 10 to 15 days after submitting the application to the concerned authority. No proof of any export or import is required of for getting IEC code.
- Valid for Life-time: IEC code is effective for the unlimited validity of an entity and requires no renewal. It can be used by a company or an individual against all the transactions related to import and export.
To whom Import Export Code is applicable?
- Partnership
- Proprietorship
- Limited Liability Partnership
- Limited Company
- Trust
- HUF and society
Situations where Import Export Code is Mandatory
- At the time of clearance of shipments from the customs then custom authorities/Government ask for this IEC Certificate.
- When an importer makes any foreign transaction via banks then it’s needed through the bank.
- When an exporter has to ship his shipments then it’s needed by the customs port.
- When an exporter receives cash in foreign currency directly into his bank account then it’s required by the bank.
Can Import Export Code be applied online?
Yes, it can be applied either online or offline, by giving an application to the DGFT. The IEC code is valid for all the branches of an enterprises. IEC code is issued against PAN number and only one IEC code is issued against one PAN number.
Is Import Export Code necessary for mini scale business?
For a Business person to expand its business internationally, an IEC code is mandatory for exporting any goods. The holder of the Import Export code becomes a registered trader internationally. It helps the trader in clearing the consignment from the customs authority and other authorities.
Steps Involved for Registration of Import Export Code
- Step 1: Firstly, you need to prepare and file an application form in the format as specified – Aayaat Niryaat Form ANF-2A format and file it with the respective Regional office of DGFT.
- Step 2: Then you need to prepare the required documents with respect to your identity & legal entity and address proof with your bank details & the certificate in respect of ANF2A.
- Step 3: Once your application is done, you need to file with DGFT by attaching DSC (Digital Signature Certificate) and pay the required fee for the IEC Registration.
- Step 4: Finally, after approving of application, you would receive the IEC Code in a soft copy on the registered email or message on registered phone from the government.
Requisite Documents to upload for Import Export Code Registration
For Registration of Import Export Code following documents are needed:
- Company’s Certificate of incorporation or Firm Registration certificate.
- Copy of PAN Card of Individual/ Firm/ Company as the case may be.
- Individual’s Aadhar card or passport copy.
- Cancelled cheque copy or Bank Certificate from bank in which Company or Firm is account holder.
- Copy of Lease Agreement or the copy of Electricity Bill of the premise.
- Address proof for delivery of IEC certificate by registered post.
Certain cases where Import Export Code is not required
According to the latest circular issued by the Government Authority of India, Import Export Code is not must for all traders who are already registered under GST. In all those cases, the PAN of the trader shall be considered as new IEC code for the purpose of import and export. Import Export Code (IEC) is not required to be taken in case where goods are exported or imported for personal effects and are not used for any commercial/business purpose. Export/ Import done by the Departments/Ministries of Government of India, Notified Charitable institutions does not require Import Export Code.
Duplicate Copy of Import Export Code Number if lost
Where an IEC Number is misplaced or lost, the regulatory issuing authority may consider requests if necessary for grant of a duplicate copy of IEC number, if attached with an affidavit.
How to surrender Import Export Code if required?
If an IEC holder does not wish to continue operating the allotted IEC number, he/she may surrender the same by informing the issuing authority through an application. On receipt of such information, the issuing regulatory authority shall instantly abort the registration and transmit it to DGFT electronically for onward transmission to the Customs and Regional Authorities.
Conclusion
About half of the small business entities in our country are substantially laid low with the exchange obstacles. With IEC registration in hand, you can bypass the inevitable barriers that restrict global buying and selling.
Additionally, it opens the door of opportunity for a great deal-wanted commercial enterprise growth for the businesses searching to make their mark with expanded market presence.
