Import Export Code License
Why register for an Import Export Code License?
For the importers to clear their shipments from the custom, the customs authorities need the license. The banks require an import-export code license when the importer sends money abroad.
The custom port requires the IEC license when the exporter sends his/her shipment. Also, when the exporter receives money in foreign currency directly in his/her bank account, then the license is required by the bank.
Obtaining the import-export code license is mandatory before commencing any import or export activities. Unless the person has obtained an import-export code license such person cannot deal in import/export goods and services in India. The registration requirements of an IEC cannot be ignored as it is compulsory in nature.
Benefits of availing of the Import Export Code License
Obtaining an IEC license has multiple benefits and perks. Some of them are as follows:
- Expansion of the business: The import-export code would take your services and products to the global market and thus it helps expand the business to the next level.
- Availing many benefits: The company can avail various advantages related to their import/export from the director general of foreign trade, export promotions council, customs, etc.
- No requirement to file a return: The import-export code does not require the filing of any returns. Once the allotment is made there isn’t any requirement to follow any kind of process for sustaining its validity. Even for export-related transactions, there aren’t any requirements for filing any return with DGFT.
- Processing is easy: It is very easy to obtain an IEC license from DGFT within 10-15 days after submitting the application. There is no need to provide proof of any export or import for obtaining the IEC code.
- No renewal requirement: Import-export code license is valid for a lifetime and no renewal requirement is associated with it. After it is obtained, the entity can use the license for all export and import transactions.
- It improves the standard of business: Through promoting the global reach, import-export code registration helps the businesses in maintaining relations and enhancing the quality of businesses.
- IEC license would provide different benefits: The IEC license provides different benefits to the companies. In addition to this, the companies can also claim the refund of taxes paid while exporting the goods.
- Dealings in illegal goods are restricted: To obtain an IEC license genuine and correct information is needed. The import-export code license cannot be availed without providing full genuine information. Therefore it restricts the illegal dealings of goods.
- The IEC license acts as a primary document to start an international dealing: The IEC registration acts as a primary document to start the international dealings.
- No compliance: The importers and exporters do not require to fulfil specific requirements related to compliance such as annual filings or return filing.
- Global Market Reach: By obtaining the import-export code license the global market reach would increase. As it is the prerequisite for the importers and exporters to import and export goods and services across the globe.
About Import Export Code License
IEC refers to the importer and exporter code which is obtained by the business entities for import-export from India. The registration of this code is applied under Chapter III of the foreign trade (development & regulation) act, 1992. It is a 10-digit unique number. It is issued by the DGFT.
Individuals, as well as business entities, can apply for registration for import or export from India. Also, the renewal of the license is not required. The license is valid for a lifetime. The application to obtain the IEC code license is made online to DGFT accompanied by the necessary documents.
Following are the registration requirement to avail of an IEC license, they are:
- Any bonafide individual or company can start a venture for international trade of export and import but they require to obtain an Import Export Code (IEC).
- The IEC code is required in limited cases only when import-export is for technology or services.
- Import Export Code is not required when import and export are done by government ministries and departments and by the notified charitable organizations.
- One IEC will be issued against one PAN card. One cannot hold two IECs against a single PAN card.
The registration process to acquire an Import Export Code License
Following is the registration process to acquire the IEC license:
- Prepare the application: The process to apply for the IEC code is conducted online on the DGFT website. To start the application process, the applicant is required to visit online the website to proceed with the application process.
- Processing the application: Once the application is prepared online, the applicant must check whether all information corresponds to the requirements. The applicant would also require to accept a declaration that the information given by him is true and correct. After all this, the applicant would require to submit the form online.
- Payment of IEC fees: After the above process is carried out for the IEC code, the payment must be made through the portal. A payment of ₹500 (Five hundred rupees) would be required for the IEC registration process.
- Issuing the code: After this process, the application status can be tracked and monitored online.
Usually, the import-export code certificate would be provided to the application after a few days to the application.
Documents required for the Import Export Code License
Following are the documents required for an IEC license:
- Individual’s or firm’s or company’s copy of PAN card.
- Individual’s voter ID or Aadhar card or passport copy
- Individual’s or company’s firm’s cancelled cheque copies of current bank accounts.
- Copy of rent agreement or electricity bill copy of the premise
- A self-addressed envelope for delivery of IEC certificate by registered post