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In this era of competition, everyone wants to grow their business beyond the domestic market. However, doing business globally isn’t just a cup of tea for everyone. Before going global, you need to follow several procedures and laws in place and get different registration and license. IEC (Import Export Code) license is one of such prerequisite when you’re thinking of importing or exporting from India.
It is required by anyone who is looking to start his/her import/export business in the country. It is issued by the DGFT (Director General of Foreign Trade). It is a 10-digit code which has a lifetime validity and requires no renewal at any point of time. Predominantly importers merchant cannot import goods without the Import Export Code and similarly, the exporter merchant cannot avail benefits from DGFT for the export scheme, etc. without IEC.
Requirement of IEC
- When an importer has to clear his shipments from the customs then it’s needed by the customs authorities.
- When an importer sends money abroad through banks then it’s needed by the bank.
- When an exporter has to send his shipments then its needed by the customs port.
- When an exporter receives money in foreign currency directly into his bank account then its required by the bank.
Steps for Online registration
- Go to DGFT website, then Click on Services tab, and click on IEC profile management.
- Register yourself or login if already registered.
- Enter the information required and upload relevant documents
- Make payment for processing of your application
- Submit your application using Digital Signature certificate token
- Once your registration is approved you’ll be receiving a soft copy of the certificate in your mail provided in the application.
Documents required for registration
- 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 or firm’s cancel cheque copy of current bank account.
- Copy of Rent Agreement or Electricity Bill Copy of the premise.
- NOC from the owner if applicant is not the owner of the premises
Benefits of Registration
- Business Expansion: It helps you in taking your services or product to the global market and grow your businesses.
- No Return Filing: 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.
- Several Benefits: Companies could avail several benefits of their imports/ exports from the DGFT, Export Promotion Council, Customs, etc., on the basis of their IEC registration.
- No Renewal: It 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 IEC 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.