IEC or usually known as an Import Export Code is a code with 10 digits. If any business or person wants to import or export goods or services this code is mandatory for them. The Director-General of Foreign Trade (DGFT) from the Department of Ministry of Commerce and Industries issues the IEC code. Many names have been given to it like the Import Export license, import-export code, importer-exporter code, import-export license etc.
The code can be issued either in the company's name or your name. You will receive the import export code or IEC after completing IEC registration.
Features of IEC Registration
- IEC Registration is compulsory for every importer as well as exporter.
- Director-General of Foreign Trade (DGFT), Customs and Export Promotion Council guarantees the benefits to be received from import as well as export.
- The validity of IEC code is a lifetime. It need not be renewed again and again.
- If you are an owner of the property you can also obtain the code, it is not mandatory to establish a business.
- With regard to IEC, you don't need to file the return and even the export or import transactions don't need to be filed under the DGFT.
Benefits of IEC Registration
Business Expansion
IEC will help you in globalising your product and grow your business.
Avail Many Benefits
On the basis of IEC registration the companies can gain several benefits for their imports or exports from the DGFT.
No Filing of returns
Filing of returns id not required in IEC. After receiving the IEC code there is not any requirement to follow any type of processes to maintain its validity. Even with regard to export transactions, there is no requirement to file any returns with the DGFT.
Easy and Feasible Processing
It is very easy to receive the IEC code from the DGFT within a short time. You don't need to provide proof of any import or export to receive the IEC code.
No need for Renewal
IEC code is also effective for a lifetime and no renewal is required here. After obtaining this can be used by any business against all transactions related to export and import.
Documents Required for IEC Registration
Following Documents are required for IEC Registration-
- PAN Card copy for the applicant company
- Address Proof of the Entity(Electricity Bill)
- 2 Lease/Rental Agreement if the company is rented
- Canceled Cheque copy of Current bank Account
- Sale Deed if the Entity is self Owned
- Digital Photograph (3)
Procedure for IEC Registration
Step 1: First of all, prepare the application form in the mentioned format that is Aayat Niryaat Form No-2A format and then file it with the respective Regional office of the DGFT.
Step 2: Secondly, you also need to prepare all the required documents with respect to the identity and legal identity as well as address proof along with the bank details and certificate in respect of ANF2A.
Step 3: After completion of application , you need to file with the DGFT through DSC (Digital Signature Certificate) and pay all the requisite fee for the IEC registration.
Step 4: Finally, after approval of your application, you will receive the IEC code in soft copy from The Government.
FAQs
- What do you mean by IEC?
IEC stands for the Importer Exporter Code. As per the Legal provisions of Section 7 of Foreign Trade (Development and Regulation) Act, 1992. This is allotted by the Government as per the provisions specified in the Act.
- Is it possible to do export or import without IEC registration?
No, IEC registration is mandatory before starting any export or import business.
- What are the situations where IEC is required?
- When an importer needs to clear all his shipments from the customs they need to provide IEC number to the customs authorities.
- Whenever an importer sends money abroad via banks then they need to submit it to the bank.
- Whenever an exporter receives foreign currency directly in his bank account they need to provide it to the bank.
- Is it possible to make import or export without obtaining a license?
No, any company, individual or sole proprietor engaged in a business of import or export needs to obtain an IEC license. It is a compulsory recognition provided by the Government to both the exporters and importers of the goods or services.
- Do I require IEC for import or export of goods for personal use?
IEC is compulsory only for business and other commercial purposes. For personal use, you don't require an IEC code.
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