IEC Registration in India
Despite the negative impact of the demonetization, do you know India grew its export business fastest in the year of 2016-2017 to $274.65 billion? The world is coming closer each passing day, with back to back business innovations, reforms from the end of government and emerging e-commerce and ever tactics chains.
The government has taken various steps to make the policies easy related to the exports in India and which in reality helped in minimizing the corruption and improving ease of doing business. Therefore, every entrepreneur, startups should be aware of the legal policies and the procedures by which they can show their seeds to start the import export business in India as without IEC Registration they cannot go long. So, let’s explore some more about how to get your IEC code registration in India.
What is IEC Registration in India?
If you are planning to start an import-export business in India then the first thing you need in your pocket is the Import Export Code (IEC) License. A Registration is very important when you are commencing a business of importing or exporting goods. If in case, the import/export is related to services or latest technologies then import export code registration is mandatory. The limited circumstances such as dealing with nuclear weapons, guns, managing atomic weapons, programmed firearms, etc are pertained to the national security and hence restricted by the Government of India.
What is the need of Import Export Code Registration?
IEC is a unique 10 digit number which is issued to any person or company by the Director General of Foreign Trade (DGFT), part of the Ministry of Commerce and Industry so that he may carry his Import Export business in India smoothly.
Check when IEC registration is required-
- It is required to get the License for Importing and Exporting goods. It is enrolled with the dealer code details with the port through which the goods are being imported or exported. Illegal transport of goods is restricted and IEC helps in reducing that as it is impossible to get import export code without giving the complete information of goods.
- Custom authorities clear the goods only by checking the it.
- Organizations can avail different advantages from DGFT, Customs, and Export Promotion Council on import & export.
- When an importer transfer or send money abroad through banks then it’s needed by the bank.
How to do IEC Registration Online?
First of all, you must be sure that you are eligible for obtaining import export code. An online application will be filed with the Directorate General of Foreign Trade (DGFT). After the submission of the form, import export code is provided to the applicant within 15 to 20 days by the DGFT. import export code Fees for the Import export license required is Rs 2499 only. The following is the IEC Registration process which is discussed below-
- Prepare an application form in a format Aayaat Niryaat Form no. 2A and file it to the Regional office of DGFT.
- Furnish the required documents like address proof, identity proof, bank details with a certificate in respect of ANF2A.
- Once you are done with your application, you are required to file with DGFT via Digital Signature Certificate and pay the required fees for the import export code.
- Once your application is approved, you will receive the IEC code in a soft copy form the government.
Documents Required for IEC Import Export Code
- Copy of the PAN card
- Copy of the Aadhar Card or passport Copy or voter id
- One cancel cheque copy of the current bank account
- Copy of the rent agreement or electricity bill of the premise.
What Are The Benefits Of IEC Code?
The import-export code is issued by the DGFT in India and is prevalence known as IEC code, which is a 10digit number. IEC Registration is an obligatory prerequisite to import or export any product from India. The benefit of IEC code is that it unlocks the international market. You can considerably enroll in International online commercial centers like amazon.com, Alibaba.com and so on.
The following are the other benefits of the IEC Registration in India-
- Embellishment of business
- Several embedded Benefits
- No filing of returns
- Handy Processing
- No renewal Required
IEC helps you to widen your product or services to the global market and grow your businesses.
The companies could avail several benefits of their imports or export benefits from the DGFT, Export Promotion Council, Customs, etc on the basis of their IEC Code.
IEC does not call for any filing of the returns. Once you get the IEC code there aren’t any follow up for sustaining its validity. Even for the export also there aren’t any such follow or requirements for filing any returns with DGFT.
After submitting the application, you just need to wait for around 10 to 15 days to get your IEC code from the DGFT. Furthermore, there aren’t need to provide a proof of any export or import for getting the IEC code.
IEC code once granted has the validity for a lifetime. You don’t have to pin updates, or set an alarm to renew it.
What Are The Features Of Import Export Code?
All merchants who import products are required to enlist Import Export Code and all exporters require this code to get the advantages of exports. IEC code holder does not require filling any returns; it is issued for the lifetime and requires no renewal. Indeed, people who are proprietors can get the code in their name audit isn't important to set up a business for the same.
Following are the highlights of the IEC Code Registration:-
Business development: Taking your administrations or products to the universal market will expand your organization and IEC empower you to sell your items outside India.
Government Benefits: Govt. of India encourages export activities in India, if you have the IEC Code Registration. You can avail this service from the end of DGFT, Customs and Export Promotion Council.
Fare Subsidies: Based on IEC code registration, organizations or firms can take advantages and subsidies their imports/exports from DGFT.
Lifetime legitimacy: Import Export Code is issued for the lifetime of your import export businessperson requires any renewal process. So once an IEC Code is received, it can be utilized for all transactions without any interruption.
No Return Filing: IEC Code does not require the documenting of any return. Once, an IEC Code is issued there is no further process required to keep up the legitimacy of the IEC registration. Regardless of whether import or fare exchanges happen, there are no filings required to DGFT.
The exemption under IEC Registration for goods and services
IEC is not mandatory for all the traders who have GST registration it comes with the exemptions also. The following are the cases where the exemption is provided-
- In case the goods or services exported or imported is for the personal purposes and isn’t used for any commercial purpose.
- Export/Import done by the Government of India Departments and Ministries or Notified Charitable institutions need not require getting Import Export Code.
What are the types of IEC Registration?