What is Import Export Code? How to Apply IEC Code, Benefits of IECode.

IEC (Import Export Code) – How to Apply for It, Benefits of IECode

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In the current era of fierce competitiveness, everyone wants to expand businesses beyond the limitations of the local market. However, doing business worldwide isn’t just a cup of tea for everybody. When you decide to go international, you must adhere to various laws and procedures and obtain different registrations and licenses. IEC code [Import Export Code] license is one of the requirements for those thinking of importing and exporting to India, and it’s also known as Importer Exporter Code.

Also Check – HOW TO EXPORT

IEC (Import Export Code) is required by any person who wants to start their export import business. IECode is issue by DGFT (Director General for Foreign Trade), and IEC is a 10-digit code. Predominantly, importers, merchants can’t import goods without an Import Export Code, and similarly, exporters merchants Without IEC cannot avail benefits from DGFT to export schemes.

IEC Code, What is IEC and How to apply IECode - Import-export-coach.com

Situations Where IEC is Required

If an importer needs to clear his goods from the customs, then it’s required by the customs authorities. When an exporter has to send his shipments, then it is needed by the customs port.

When an exporter has to send his goods, then it’s needed by the customs port. If an exporter gets to cash in foreign currency directly into his bank account, it’s required by the bank.

1: Application Form

First, you need to prepare an application form– Aayaat Niryaat Form ANF-2A format and You must then send it to the relevant regional office of DGFT.

2: Documents

Then, you need to prepare the required documents concerning your identity ​and address proof with your bank details & the certificate in respect of ANF2A.

3: Filing Application

After submitting your application, you need to file with DGFT through DSC (Digital Signature Certificate) and pay the required fee for the IEC Registration.

4: IEC Code

If your application is accepted, you will be given an IEC Code in a soft copy from the government.

Related Article – Import and Export Process in India

Documents Required for Import Export Code Registration

which documents required for iec code - Import Export Coach

To be eligible for IECode Registration, the following documents are needed:

  • Individual/company PAN Card.
  • voter id or Aadhar card or passport copy.
  • Individual’s or company’s cancel cheque copies of current bank accounts.
  • Copies of Rental Agreement and Electricity bill
  • A self-addressed envelope for delivery of IEC certificate by registered post.
Also Read – Payment Terms in Export and Import Business

Benefits of Import Export Code Registration

Expansion of Business

IEC helps you take your products or services to the world market and grow your business.

Availing Several Benefits

The companies could benefit from their imports or exports through Customs, the DGFT, Export Promotion Council, etc. Based on the IEC registration.

There is no filing of returns.

IEC doesn’t need the filing of any returns. Once assigned, there is not any demand to follow any processes for sustaining its validity. Even for export transactions, there isn’t any demand for filing any returns with DGFT.

Easy Processing

It’s pretty simple to get the IECode from DGFT within 10 to 15 working days after making the application. There’s no requirement to prove any proof of import or export to obtain an IEC code.

No Need For renewal

IEC code is effective for the lifetime of an entity and needs no renewal. After it is obtained, an entity can utilize it against all export and import transactions.

Import Export Procedures In India

Cases Where Export-Import Code (EIC) is Not Mandatory

According to the latest circular issued by the government, IEC isn’t obligatory for all traders who are registered under GST. In all cases, the PAN of the trader shall be construed as a new IEC code for import and export. Import Export Code (IEC) isn’t necessary to be taken just if the products exported or foreign are for private functions and used for any commercial purpose.  Export/ Import done by the govt. Of Bharat Departments and Ministries, Notified Charitable establishments needn’t need obtaining Import Export Code.

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