It is a very tedious task to expand your business, be it on domestic level or international level. The first thing that you will need is an Import Export Code in order to start. There are various laws laid down by the government in order to get the registration to expand your business on global level for your goods as well as services. For all those entities and individuals who want to get involved with the import and export business in India will have to get the IEC Code. For example, you want to export a chair from Indian territories to Canada, then you need to have an IEC Code to do that. Another important aspect or benefit of having an IEC Code is that helps the business to grow and grab various opportunities. Along with that, it is not important for you to show any activity related to Import or Export in order to get an IEC Code.
Another important factor that you need to keep in mind is that you have to specify in your Company’s Memorandum of Association (MoA) that you are willing to planning on engaging in activities related to Import and Export.
What is an Import Export Code (IEC)?
The Director General of Foreign Trade (DGFT) from the Department of Commerce of the Government of India issues a ten - digit identification number to the applicant so that he can trade globally. Another term for the IE Code is the Importer Exporter Code. In India, it is not possible to carry out any activity related to import export without having an IEC.
When and Where is the Import Export Code (IEC) mandatory?
Under the following conditions it the Import Export Code (IEC) is required:
1. When the importer arrives at the Custom to get its shipment cleared, the Authorities at the Custom will ask for an IEC.
2. Whenever the Importer want to send money abroad, he will require to show his IEC at bank.
3. When the exporter wants to send his shipment, the Custom Authorities will ask him to show his IEC.
4. The Bank will ask the exporter for his IEC whenever he receives a payment in his bank account in a foreign currency.
What are the documents required to get an IEC Registration?
In order to get a registration of IEC, the below mentioned documents have to be submitted:
· PAN Card of the Company or Individual
· For the Identity Proof, any of the following can be submitted:
o Aadhaar number
o Voter ID
· A cancel Cheque of the bank account of the applicant.
· For the address proof, any of the following documents can be submitted:
o The Rent Agreement signed for the premise.
o Sale Deed
o Telephone Bill
o Lease Deed
o Electricity Bill
Important Points to Remember:
· The No Objection Clause that has to be submitted as well as the Address Proof, has to be in the Company’s name in case it is not for an individual.
· The mobile number that is entered in the IEC Application, along with the email address has to stay active permanently.
What is the Procedure to apply for IEC Online?
In order to apply for an IEC online, you have to follow these simple steps:
STEP 1: You have to start by visiting the website of Directorate General of Foreign Trade (DGFT). Then go to the menu bar and select the “Services” option available there. Thereafter, click on “IEC” and then select the “Online Application IEC” option.
STEP 2: The next window that appears on your screen will need you to provide your PAN Cards Number and then select the “Search” option.
STEP 3: On your Mobile number as well as the Email Id, a token number will be sent and you have to verify using the same.
STEP 4: On your window, a list of instructions will be given, following which you have to fill your e IEC application.
STEP 5: The steps to follow in order to file the e IEC application are as follows:
· First and foremost, you need to add the details of the entity.
· Then you have to provide the Firm’s branch details.
· According to the condition which applies to you need to provide either the details of the partner or the Director.
· You need to upload the address proof along with either the bank certificate or a cancelled cheque (Pre Printed)
· You have to pay the prescribed fees.
· Then go on the “Preview and Print application” option.
· Finally, you have to submit the application.
· Then you can generate the IEC and print it for yourself.
Where is the Import Export Code not required?
Under the following conditions it is not required to have the IEC:
1. In case of traders who are registered under the GST
2. In case of goods that are used for personal purposes
3. In case of goods that are used by the Government departments
4. In case of goods that are imported or exported for the charitable institutions
What are the benefits of the Import Export Code?
Following are the benefits of having an Import Export Code:
· It helps in expanding your business.
· The exporter can utilize the benefits of export subsidies.
· The Import Export Code has a validity of lifetime.
· There is no need to file the returns in order to maintain the validity.
· Even individuals can apply for the IEC.
· Helps the goods reach the online market internationally.
· The entire procedure to apply for IEC is through online mode.