IMPORT EXPORT CODE INFORMATION (IEC)
The initial registration needed for commercial entities engaging with the import or export of products and services from India is the Import Export Code, more generally referred to as IEC. The Directorate General of Foreign Trade issues IEC (DGFT). It serves as a passport for commercial import and export.
The expansion of company opportunities is one of the key advantages of applying for IEC. Not only through exports, but also through imports into India, this can be accomplished. Any business or entrepreneur may have a hassle-free experience without having to worry about compliance.
Benefits would come to the company automatically upon registration under the IEC system. The organization is capable of adhering to any type of compliance-related requirements. In addition, there would be other programmers that would help firms.
No need to submit returns
Under this method, no returns must be filed. As a result, once the code is assigned, filing returns to demonstrate the validity of the certification is not necessary.
Single-time registration only
This registration compliance only needs to be completed once, depending on the needs of the firm. Even yet, a company cannot engage in any export or import-related activity without this licence. However, there is no necessity to renew this licence once a company or proprietor obtains it.
The registration process for IECs is entirely online. As a result, processing would go quickly in comparison to the offline approach. When a first application for registration is made using this system, the applicant is given an OTP number. Thus, seamless processing times can be obtained with this technology.
Approved by the government
Products that are exported from India must be certified in accordance with the DGFT’s specifications. Consequently, improved reputation can be attained through this procedure.
When Is Registration For An Import Export Code Required?
Following situations necessitate IEC registration:
For the purpose of clearing the importer’s shipments with customs officials.
Banks need this code when sending money abroad through approved banks.
International shipments exported
The bank need this code when the exporter receives inward remittance.
This code is necessary for food licencing and FSSAI registration.
This code is needed in order to register with APEDA.
Any type of subsidy that the exporter receives will require this code.
For export services, is an IEC required?
Yes, that is necessary. Merchants are unable to export products or services to other nations without an IEC code. If a business is exporting products and services, the customs port needs the IEC. If you receive foreign currency directly into your bank account as an exporter, you would additionally need an IEC code.
How do exporters and importers, in particular, register for IEC codes?
You must take the following actions in order to register an IEC code for exporters and importers: Aayaat Niryaat form 2A format is one of the application forms you must prepare and submit to the relevant DGFT. You must submit the paperwork along with all of your identification documents, including your passport, Aadhar card, PAN card, and so forth. and documentation verifying your address, such as a voter ID, passport, or Aadhar card, as well as your bank information. Once you have finished, you must send it to DGFT together with the required payment for IEC registration using a DSC (digital signature certificate).
– After your application has been accepted, the government will provide you a soft copy of the IEC.
IMPORT EXPORT CODE REGISTRATION KEY POINTS
When is IEC Required?
Import Export Code is necessary when importing or exporting goods or services from India.
# Issuance Authority: The Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India, is responsible for issuing the IE Code.
# IE Code must now be renewed annually; this used to be a one-time operation. Import Export Code must be renewed annually.
# No returns must be filled out, and there are no additional procedural requirements in the IE Code.
# Custom & Banks Requirement: The IE Code mandates that quotes be submitted to customs officials and banks in order to import and export goods as well as pay or receive payments from foreign suppliers.
# Authorized Dealer Code: This code is necessary for customs clearance when exporting products outside of India. It is available from the bank.
LICENSE UNDER THE IEC REQUIRED FOR EXPORT SERVICE PROVIDER?
A crucial company identifying number required for exports and imports from India is the Import Export Code (IEC) licence. No company may import or export anything without a DGFT-issued IEC Code Number.
The IEC Code is only necessary when transferring technology or transferring services in accordance with Section 7 of the Foreign Trade (Development & Regulation) Amendment Act, 2010, or when the provider of the service or technology is pursuing benefits under the Foreign Trade Policy.
EXEMPTION FROM IMPORT, EXPORT CODE
The following parties are exempt from import and export codes:
- Ministries or departments of the federal or state governments.
- People who import or export goods for their own use that have nothing to do with commerce, industry, or agriculture.
- Individuals who import or export goods from or to China, Myanmar via the Indo-Myanmar border areas, Nepal, or any other country as long as the CIF value of each consignment is less than or equal to Rs.25,000. For Nathula Port, the applicable exemption cap is Rs. 1 lakh.
- Access the IEC Number Exempted Categories. pdf document for the eligibility requirements for Import Export Code Exemption.
DIGITAL SIGNATURE IS REQUIRED FOR IMPORT EXPORT CODE
For an import export code, importers and exporters can apply online. As a result, the need for the firm owner’s or director’s digital signature for the import export code materialises.
The most popular method for submitting an online IEC code application is using a digital signature (DSC).
Additionally, the DGFT offers an exclusive digital signature certificate to businesses that already have IEC codes for export and import. Candidates can reduce their licence fees by up to 50% by using this special DSC.
E-Startup India can assist the applicant with setting up a digital signature (DSC).
Process for IEC Registration
Upload the necessary files and data to our web portal.
Choose a package and pay online using one of the available payment methods.
The application will be prepared by one of our professionals using the IE Code format.
Before DGFT, submit the online application and include the applicant’s digital signature.
Within a week, DGFT representatives will verify and process the application.
After verification is complete, provide the Import Export Code certificate through email.
REQUIRED DOCUMENTS FOR AN IMPORT/EXPORT CODE
- A photo the size of a passport.
2. PAN Card
- Financial Information.
- An already printed cheque.
- A bank certificate.
- Address Validation