Import Export Code or IEC is a 10-digit code that a business or an individual must provide to import/export goods/services. This code is issued by DGFT (Director General of Foreign Trade), Ministry of Commerce and Industries, Government of India. The validity of this code is for a lifetime, that is, there's no requirement of renewal.
This code has many names, like importer export code, import-export code, import-export license, import-export number, IE code, IE license etc. You can issue this code in either your name or under the company's name. Once issued, it's valid for all its division/units/factories/branches.
When is IEC code required?
· It is needed by the customs authorities to clear the shipments in the case of any imports.
· Also, it is needed by the bank to transfer the amount in the case of any imports made.
· Vis-à-vis if an exporter must send the shipments, then it's required.
· Or, if the exporter is meant to receive money in foreign currency and it's transferred directly into his checking account.
Advantages of IEC registration:
Entering the International Market – Import Export Code registration is very crucial for import-export business. The code gives an individual to capture the international market, which in return helps the business to grow rapidly.
Builds up the business standards – IEC registration helps in maintaining the business relations and improving the quality of business. Thus, promoting the global reach.
Safeguards from dealing with illegal goods – During the process of IEC registration the authenticity of the goods and business itself is checked very carefully by the department. All the information an individual provides has to be authentic and accurate. As a result, it restricts the illegal dealing of goods.
IEC Registration provides certain benefits – IEC Registration has been proved to be beneficial for the companies who have obtained an Import Export Code for their business from DGFT customs, Export Promotion council etc. Moreover, the companies can also claim a tax refund on exporting the goods.
Lifelong validity of the IEC registration – The business owner enjoys the lifetime validity of the IEC registration. It stays with the owner of the business unless the business ceases to exist. Hence, the renewal of the registration is not even required.
Different documents are required by different entities to urge IEC code and these are given below:
Process:
Step 1: Application Preparation - In order to procure a code, an application must be made in the Aayaat Niryaat Form 2A format to the DGFT in that region where the registered office of the company is established. The Government has also arranged an online filing facility for obtaining IEC code online.
Step 2: Application Processing- Details of the business and its proprietors, directors or partners, bank account details and a bank certificate are the essential requirements of ANF 2A. All the specified documents for IEC need to be submitted with ANF 2A. A digital signature is also required on the ANF2A form.
Step 3: IEC fee payment- Once the application is complete, it should be filed with DGFT and an application fee needs to be paid to the government. The IEC department may send back your application for correction/change. You need to reply to the DGFT in 15 days
Step 4: IE Code Issuance- Once the application is thoroughly verified by the department, the Directorate General of Foreign Trade will allot an IE Code for your business. This IE code comes in both soft copy and a physical copy. You receive the softcopy via email and may start the import-export transaction with this.
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