Import Export Code- When it is required?

Import Export Code- When it is required?

In today's time of cut-throat competition, every business person wants to grow his business globally. However, doing so isn't that easy. Before going global,  you need to follow certain procedures and laws requiring different licenses and registration. Import Export Code (IEC) license is one of such prerequisites when you're going to expand your business beyond the country's borders. It is also called the Importer Exporter Code.
 Import Export Code is required by anyone looking to kick-start their business. DGFT issues the IEC code. It is a ten-digit code, the same as your PAN having lifetime validity. Predominantly, importers merchants can't import goods without the Import Export Code, and similarly,  without IEC, the exporter merchant can't avail benefits from DGFT for the export scheme.

When Import Export Code is needed

 
  1. When an importer merchant has to clear his shipments of goods from the customs, customs authorities ask for the IEC.
  2. When an importer merchant sends money abroad through banks, then it's required by the banks.
  3. When an exporter merchant has to send his shipments of goods, then it's required by the customs.
  4. When an exporter merchant receives money in foreign currency directly into the bank account, then it's needed by the banks.

IEC Exemption

An IEC Code is required for the import/export of any goods by a business. However, the following persons/categories of persons are exempted:

  • Import and export by Central Government or agencies for defence purpose or other specified lists under Foreign Trade Order, 1993.
  • When goods are imported and exported for personal use.

Steps for Import/Export Code (IEC) registration

Step 1: Application Form

First, prepare an application form in the specified format of Aayaat Niryaat Form (ANF-2A) and file it with the respective  DGFT regional office.

Step 2: Documents required

Secondly, prepare the required documents of your identity & legal entity and address proof with your bank details.

Step 3: File application

File it with DGFT via DSC (Digital Signature Certificate) when completed and pay the specified fee.

Step 4: IEC Code

Finally, when your application is approved, you would receive the IEC Code in a soft copy.

Documents required for IEC registration

For IEC Registration, the following documents will be required:

  1. Copy of Individual's/Firm's/Company's PAN.
  2. Individual's voter id, Aadhar card or copy of passport.
  3. Cancel cheque copies of current bank accounts of Individual or company, or firm.
  4. Copy of Electricity Bill of the premise or Rent Agreement.
  5. A self-addressed envelope for the delivery of the Import Export Code certificate by post.

Advantages of IEC Certificate

Business Expansion

IEC helps you take your services or product to the global market and grow your businesses outside the country.

Availing Several Benefits

The IEC holders could avail several benefits from the DGFT, Customs, Export Promotion Council, etc., based on their IEC Certificate.

No Filing of returns

Filing of any returns is not required after obtaining IEC.  Even for export transactions, filing any returns with DGFT is not required.

Easy Processing

It is pretty easy to obtain an IEC code from the DGFT within 10 to 15 days after applying. No need to submit any proof of export or import for getting IEC code.


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