In this age of cut-throat competition, everyone wants to grow their business beyond the domestic market’s limits. However, doing business globally isn’t just a cup of tea for everyone. Before going global, you need to follow several procedures and laws and get additional registration and license. IEC (Import Export Code) license is one prerequisite when you’re thinking of importing or exporting from India.
Also Read: Frequently asked questions about IEC
IEC (Import Export Code) is required by anyone looking to kick-start his/her import/export business in the country. It is issued by the DGFT (Director General of Foreign Trade). IEC is a 10-digit code that has lifetime validity. Predominantly importers merchants cannot import goods without the Import Export Code and similarly, the exporter merchant cannot benefit from DGFT for the export scheme, etc. without the code.
Advantages of Import Export Code
1. It serves as a permit for your company to grow on the international market.
2. A one-time code that does not expire; therefore, no renewal is required.
3. Once an IEC is allocated, returns must not be filed.
4. When all information related to imported/exported products is produced, the flow of illicit goods is reduced.
5. The value of reimbursement of such taxes paid during goods export.
Why is IEC Required?
1. If an importer needs to clear his customs shipments, the customs authorities have to do so.
2. When an importer transfers money through banks overseas, the bank wants it.
3. If the exporter must send his shipments, the customs port will send them.
4. If an exporter gets money directly into his bank account in foreign currency, it is required by the bank.
When is IEC not required?
According to the government’s latest circular, IEC is not mandatory for all traders registered under GST. In all such instances, the trader’s PAN shall be interpreted as a new IEC code for import and export purposes.
If products exported or imported are for private purposes and are not used for any commercial purposes, the Import Export Code shall not be recognized.
Government of India Export / Import Departments and Departments; Notified Charitable Organizations do not need to have an Import Export Code.
If you want to broaden your market and export/import outside your region, contact our experts and learn all the formalities you need to achieve. All services such as GST registration, company registration, etc. are available.
Check out this list to know importers or exporters are excluded from the import-exporting code numbers.
Persons who import or export products are not related to commerce or manufacture or agriculture for personal use.
Persons importing/exporting goods from/to Nepal shall not exceed Indians Rs.25,000 provided that the CIF value of a single consignment.
The CIF value of a single consignment does not exceed Indian Rs.25,000, given that persons exporting goods from/to Myanmar via Indo-Myanmar border areas.
Exemption for export of Special Chemicals, Organisms, Products, Equipment, and Technology (SCOMET), as listed in Appendix 3 to Schedule 2 of the ITC(HS), shall not be applicable, however, except as given for exports by category(ii) above.
Check out this list of permanent IEC numbers shall be used by the categories of importers/ exporters mentioned against them for import/ export purposes.
The Regional Authority of the Directorate-General for Foreign Trade (DGFT) in the area where the business registered office is located must be requested.
The DGFT has provided the IEC and other authorizations with on-line filing facilities. It includes the company’s critical details and its owners, associates, or directors (when applicable), the bank account information, and a bank certificate (where the company has an account) showing the time for which the company has an account with the bank.
Also Read: Challenges faced by SMBs to venture in Global Market
One thing to consider is that a PAN is a prerequisite for granting an IEC. And only one IEC can be provided for one PAN. The IEC given is valid for all the import/exporter branches or factories where appropriate.
To obtain a new IEC, the following documents are required:
Check here for the list of documents required for IEC.
Obtaining your IEC Code
You need to follow a long process to get the IEC. This includes visiting the official website, uploading documents, and providing all the necessary information. Instead, you can choose the experts and make it a hassle-free experience for you. The experts at LegalWiz.in can quickly process your registration and get you the IEC code to begin your import-export business.