With the rapid expansion of globalization today, cross-border commercial opportunities have also expanded. In addition, an IEC Registration supports an individual in gaining access to international commercial growth prospects. In addition, everyone who wishes to extend their firm on a global scale by engaging in the import-export sector is obliged to obtain an IEC Registration Certificate.
Therefore, an Import and Export Code (IEC) is one of the fundamental and necessary requirements for developing and managing a firm on a global scale. In addition, an IEC comes with a host of benefits. One advantage of having an IEC Code is that it facilitates not only entry into the global market but also expansion.
What is an Import Export Code?
IEC, or Import-Export Code, is a 10-digit code required for the import or export of products or services by individuals or businesses. In addition, this code is assigned by the Director General of Foreign Trade (DGFT) of India’s Ministry of Commerce and Industries.
In addition, the lifetime validity of this code is specified. This indicates that the IEC code holder is not required to submit a renewal application. Consequently, a company with IEC is able to fulfil all import-export and related obligations.
In addition, any commercial importer or exporter in India is required by law to have an IEC. Therefore, a business that lacks IEC is not qualified to engage in import and export.
Features of Registration for the Import Export Code
The following are the features of IEC Registration:
- No company is permitted to engage in import or export activity without IEC registration.
- IEC serves as proof for the company engaged in the import or export of goods and products.
- Once a person has earned IEC, that certification is valid for life. This signifies that no filing or renewal is required for this code.
- IEC Code is not necessary for the import or export of goods or services, whether for personal or legal reasons.
- An IEC is compulsory and required for international wire transfers.
- It is significant for all aspects of importers’ and exporters’ operations.
The Advantages of IEC Code Registration
Listed below are the advantages of IEC Registration:
Development of Business:
You can quickly and effortlessly expand your business’s reach into the global market with the help of an IEC code license. In addition to allowing for product exports outside of India, an IEC can also help a company get recognition in foreign markets.
Earning a Host of Advantages:
The EPC (Export Promotion Council), DGFT (Directorate General of Foreign Trade), and Customs all offer advantages to firms today, and those advantages are dependent on their IEC registration.
No Need to File Return:
The filing of a return is optional under IEC. This means that once an IEC Code has been assigned, no more action is required to establish its validity. Also, no report need be filed with DGFT for export transactions.
Acquiring IEC registration with the DGFT (Director General of Foreign Trade) is a breeze. On top of that, after an application is submitted, the same might be obtained within ten to fifteen working days. After receiving an IEC Code, export and import documentation are not required.
A person who has gotten an IEC does not need to worry about renewing it or applying for another one because it is valid indefinitely and costs nothing.
The Director General of Foreign Trade is responsible for issuing Import Export Codes (IEC), which serve as a form of official identification. Because of this, this identifying number can be presented to customs officials during cargo clearance.
When is IEC Registration Requirement?
The following is a list of when you must register with the IEC:
- The customs officials will need this code in order to clear an importer’s cargo.
- In the event an importer transfers funds internationally through financial institutions, the latter will require this code.
- The customs office requires this number in order for an exporter to deliver his packages overseas.
- Whenever an exporter receives payment in a foreign currency into his bank account, the bank will ask for this code.
- IE Code is required for both the Food and APEDA licencing processes.
- The Export Promotion Council requires this code whenever an exporter applies for an export subsidy.
Who is eligible to apply for an IEC Registration in India?
- Export Houses;
- Production facilities importing raw materials
- Entities intending to involve in EXIM Business;
- Exporter & Importer;
- Importers of goods or products seeking special authorization DGFT;
- Manufacturer cum exporter;
Only businesses in India that are officially recognised can apply for IEC. As a result, before applying for IEC Registration, you should have a Business Certificate.
Essential IEC Registration Documents
The following documents are required for IEC Registration in India:
- PAN Card of the company (not applicable in case of the proprietor);
- PAN Card and Aadhaar Card of the applicant such as Voter ID, Driving License, Passport, etc.;
- Partnership Deed or Certificate of Incorporation;
- Address Proof such as electricity bill or Sale Deed or Rent Agreement of the office location;
- Copy of cancelled cheque leaf or Banker Certificate of the current account in the company’s name.
What alterations does IEC have for GST?
In order to facilitate the credit flow of IGST (Interstate Goods and Services Tax) paid on imports following the implementation of the GST regime, the GSTIN (Goods and Service Tax Identification Number) will be required. On the other hand, PAN is an identifier for substances and entities at the granularity of the limit. But GSTIN would be used as an identification for each import and export transaction. Moreover, the UIN or PAN would be recognised as IEC. In addition, regardless of IEC, all importers must provide GSTIN in their bids.
When it comes to obtaining a Certificate of Importer Exporter Code, Egniol Services Pvt Ltd can assist you with the necessary documentation, online application filing, and coordination with the appropriate authorities.