Import Export Code - Features, Benefits and Registration Process

Import Export Code - Features, Benefits and Registration Process

Import Export Code - Features, Benefits and Registration Process

Import Export Code or IEC is a 10-digit code that a business or a person needs 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 lifetime, that is, there is no need to renew it. This code is generated within 5-15 working days after the documents are submitted and all the corrections required are made.

This code has many names, like importer exported 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 company’s name. Once issued, it is valid for all its division/units/factories/branches.
It is mandatory for companies and businesses to obtain this code to start a business that deals with import and export in the Indian Territory. It is not possible to deal with export or import business without this code.

There are certain processes and conditions that you need to fulfill in order to obtain the Import Export Code. You also need to adhere to certain regulations. Once you fulfill the conditions, you can get the IEC code from the DGFT offices. It has several regional offices throughout the country.

Features of Import Export Code


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1. Business Growth : Taking your services or products to the international market will enlarge your businesses. IEC enable you to sell products outside India.
2. Export Subsidies : On the basis of IEC, companies or firms can benefits and subsidies their exports/ imports from DGFT, Customs and export promotion council.
3. Lifetime validity : Once you are done with IE Code Registration and submit all the required documents, IE Code is issued for the lifetime of the entity and requires no renewal.
4. No Return Filing : IE Code does not require filing of any return. Once, an IE Code is issued there are no further procedures required to maintain validity of the IE Code.
5. Individuals can have IE Code : Even individuals who are proprietors of a business can obtain IE Code in their name. It is not necessary to incorporate a business entity for obtaining IE Code.

When is IEC code required?

1. When an importer has to clear his shipments from the customs then it’s needed by the customs authorities.

2. When an importer sends money abroad through banks then it’s needed by the bank.

3. When an exporter has to send his shipments then its needed by the customs port.

4. When an exporter receives money in foreign currency directly into his bank account then its required by the bank.


Documents required for IEC Code

Different documents are required by different entities to get IEC code and these are given below.

Sole Proprietorship
Partnership Firm
LLP
Trust
HUF
Digital photograph (3*3)
Digital photograph (3*3) of the managing partner
Digital photograph (3*3) of the designated partner/director of the company signing the application
Digital photograph (3*3) of the secretary/chief executive/signatory applicant
Digital photograph (3*3) of the Karta
Copy of pan card of the proprietor
Copy of partnership deed
Applicant’s copy of pan card
Registration certificate of society/copy of the trust deed
Copy of pan of Karta
Copy of passport/voter id/driving license/UID
Copy of passport/voter id UID/driving license/PAN of the managing partner signing the application
Copy of passport/voter id UID/driving license/PAN of the managing partner/director signing the application
Copy of passport/voter id UID/driving license/PAN of the managing trustee/chief executive signing the application
Copy of passport/voter id UID/driving license/PAN of Karta
If the business is self-owned, then sale-deed
Sale-deed, in the case of self-owned business
Sale-deed, in the case of self-owned business
Sale-deed, in the case of self-owned business
Sale-deed, in the case of self-owned business
If the business is rented, then rental/lease agreement
If the business is rented, then rental/lease agreement
If the business is rented, then rental/lease agreement
If the business is rented, then rental/lease agreement
If the business is rented, then rental/lease agreement

Bank certificate as per ANF 2A/ Cancelled cheque bearing blueprinted name of the applicant entity and A/c no.
Bank certificate as per ANF 2A/ Cancelled cheque bearing blueprinted name of the applicant entity and A/c no.
Bank certificate as per ANF 2A/ Cancelled cheque bearing blueprinted name of the applicant entity and A/c no.
Bank certificate as per ANF 2A/ Cancelled cheque bearing blueprinted name of the applicant entity and A/c no.


Steps Involved in IEC (Import/Export Code) Registration

Step 1: First, you need to prepare an application form in the specified format – Aayaat Niryaat Form no. 2A format and file it with the respective Regional office of DGFT.

Step 2: Secondly, 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: One your application is completed, you need to file with DGFT via DSC (Digital Signature Certificate) and pay the required fee for the IEC Registration.

Step 4: Finally, once your application is approved then you would receive the IEC Code in a soft copy from the government.


Benefits of IEC Registration

1. Expansion of Business

IEC assists you in taking your services or product to the global market and grow your businesses.

2. Availing Several Benefits

The Companies could avail several benefits of their imports/ exports from the DGFT, Export Promotion Council, Customs, etc., on the basis of their IEC registration.

3. No Filling of returns

IEC does not require the filing of any returns. Once allotted, there isn’t any requirement to follow any sort of processes for sustaining its validity. Even for export transactions, there isn’t any requirement for filing any returns with DGFT.

4. Easy Processing

It is fairly easy to obtain IEC code from the DGFT within a period of 10 to 15 days after submitting the application. There isn’t any need to provide proof of any export or import for getting IEC code.

5. No need for renewal

IEC code is effective for the lifetime of an entity and requires no renewal. After it is obtained, it could be used by an entity against all export and import transactions.

Cases where Export Import Code (EIC) is not mandatory


According to the latest circular issued by the government, IEC is not mandatory for all traders who are registered under GST. In all such cases, the PAN of the trader shall be construed as new IEC code for the purpose of import and export.
Import Export Code (IEC) isn’t required to be taken in case the goods exported or imported is for personal purposes and isn’t used for any commercial purpose.
Export/ Import done by the Government of India Departments and Ministries, Notified Charitable institutions need not require getting Import Export Code.
If you are looking to expand your market and go beyond country borders and export/import, reach out to our experts and know all formalities you need to get through. You can avail all services such as GST registration, business registration etc.


For more information visit www.taxaj.com
Posted by Pooja
Team Taxaj

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