The Ultimate Guide For Your IEC Code Application

• INTRODUCTION

• IE Code IEC registration is required by a person for exporting or importing goods.

• It is a 10 digit code which is issued by the Directorate General of Foreign Trade (DGFT).

• All businesses which are engaged in Import and Export of goods require registering Import Export Code.

• IE code has lifetime validity. Importers are not allowed to proceed without this code and exporters can’t take benefit of exports from DGFT, customs, Export Promotion Council, if they don’t have this code. The IE Code must be quoted by importers while clearing customs. Also, banks require the importers IE Code while sending money abroad. For exporters, IE Code must be quoted while sending shipments. And banks require the exporters IE Code while receiving money from abroad.

• Requirement of IE Code

Now the first thing one require to start Export Import business is Import Export Code (IEC). It is same as the PAN, however, it is compulsory to apply for IEC and register the firm with DGFT. IEC is issued to any bonafide Individual or Company. As a Passport is mandatory for traveling abroad, similarly an IEC Code is mandatory to Export or Import anything from/into India.

IEC Certificate is issued by Directorate General of Foreign Trade (DGFT) which comes under Ministry of Commerce and Industry, Government of India. The main objective of DGFT is regulating and promoting Exports from India. It has a total of 36 branches across India. One have to make an application electronically and submit it to that particular DGFT office that falls under your jurisdiction.

• Documents Required for Import Export Code(IEC) Registration

• IEC Code Registration required following things:

• Individual Person • Personal or Company or Firm Pan Card Copy.

• Personal Aadhar card or voter id or passport copy.

• Personal or company or firm current bank account cancel cheque copy.

• Electricity Bill Copy or Rent Agreement or Sale deed of the premise copy

• Features of the Import Export Code (IEC) Registration

• International Exposure: IEC Code helps you to grow your business from local market to international market and expand your product or service across the global.

• Government Benefits: Government of India always promote the export activity in India so through IEC Code Registration you can avail all the export scheme benefits from DGFT, Customs and Export Promotion Council.

• No Renewals : IEC Code issued by the DGFT for the lifetime validity so you have not required renew every year so it’s a just one time cost of the registration.

• No Annual Compliance: IEC Code have no annual compliance like returns filings etc. Even you have not shown anywhere the transactions.

• Individual person: IEC Code can be obtain by the individual person also, they have not required to register the legal entity.

• Benefits of IEC code for business

Obtaining an IEC is the greatest way to gain a foothold in the international market. Below are the points which help you understand the advantages of the Import Export Code

• Easy Registration Process

The Directorate General of Foreign Trade (DGFT) has begun an online registration process for ICE. Organizations that are both registered and unregistered can apply for the permit and receive the code within 10 working days. If you have registered for GST, you won’t need to worry about a different IEC code. At the exchange level, your GSTIN will be used as an identifier.

• Advantages of Government Scheme

Benefits in the form of subsidies or otherwise declared by the Export Promotion Council, Customs, or other agencies would be available to IEC Code registered business organizations. Exporters can make exports without paying taxes after registering a letter of undertaking under GST. If taxes are paid on the exports, the exporter is entitled to a reimbursement of the amount paid in taxes.

• Exploring global markets

The finest and most crucial benefit for your organization is the registration of import and export codes. This will enable you to reach out to a wider range of countries and expand your global reach. It will also significantly accelerate your growth. It opens up a world of possibilities for both your company and yourself.

• There is no requirement for annual maintenance
There is no monthly or annual maintenance cost after you acquire your import and export codes. The registration is non-transferable and is good for the duration of your company’s existence. As a result, their is no need to set any reminders for IEC Code filing and renewal

• Registration based on PAN

The Code is generated using the business organization’s Permanent Account Number. As a result, registration is not necessary based on the location of the business; rather, a single business organization may only need to register once. The registration is canceled or surrendered when the business is dissolved.

• Application for IE Registration

IEC can be obtained from any of the Zonal and Regional offices of Director General of Foreign

 Trade depending on area/region where the individual/company is located. An application has to be submitted online at DGFT web site http://dgft.gov.in duly filled in along with required documents and fees.

 • First of all we have to prepare an application form in the prescribed format i.e.AayaatNiryaat form 2A format and filed with the proper DGFT Regional office.

• In the second step we have to prepare the necessary documents related to the applicant identity & address proof and legal entity proof with the bank details & certificate in respect of ANF2A.

• In the third step once application has been completed, we file with the DGFT through DSC of the applicant and pay the appropriate fee or cost of the IEC Registration. Lesson 13 n Various Initial Registrations and Licenses 285

• Application for IE Registration

IEC can be obtained from any of the Zonal and Regional offices of Director General of Foreign

 Trade depending on area/region where the individual/company is located. An application has to be submitted online at DGFT web site http://dgft.gov.in duly filled in along with required documents and fees.

 • First of all we have to prepare an application form in the prescribed format i.e.AayaatNiryaat form 2A format and filed with the proper DGFT Regional office.

• In the second step we have to prepare the necessary documents related to the applicant identity & address proof and legal entity proof with the bank details & certificate in respect of ANF2A.

• In the third step once application has been completed, we file with the DGFT through DSC of the applicant and pay the appropriate fee or cost of the IEC Registration. Lesson 13 n Various Initial Registrations and Licenses 285

• Once application has been approved then you will get the IEC Code in the soft copy from the government department.

Validity of IE Code

IE Code registration is a one-time registration that is good for the rest of your life. As a result, updating, submitting, and renewing IE Code registration will be a breeze. It remains in effect until the business ceases to exist or until the registration is withdrawn or relinquished. Furthermore, unlike tax registrations such as GST or PF, the importer or exporter is not required to complete any filings or adhere to any other compliance requirements such as annual reporting.

All corporations and LLPs should receive an IE code after incorporation because it is a one-time registration that requires no additional compliance.

IE Code Exemption

An Import Export Code is required for import of any type of goods by a business. However, the following category of persons are exempted from obtaining an IE Code:

• Importer and export by central Government or agencies or undertakings for defense purpose or other specified lists under Foreign Trade (exemption from the application of Rules in certain cases) Order, 1993.

• Import or Export of Goods for personal use.