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Call ExpertImport-Export Code or IEC registration is mandatory for every person and organization engaged in importing and exporting activities from India. Such a 10-digit code issued by the Directorate General of Foreign Trade (DGFT) is necessitated for carrying out customs clearance, export benefits, and expansion in international markets.
If a firm is eligible, then an IEC can be made applicable by a proprietorship, partnership, LLP, or a company. The procedure includes submitting documents such as PAN card, Aadhar card, mobile number, email address, and other details required for registration. The whole procedure is online, ensuring there is no hitch in applying for the IEC.
An Importer Exporter Code (IEC) offers several advantages to businesses involved in international trade. Here are the key benefits of IEC Registration :
For any business engaged in international trade, an IEC has a host of advantages. Here are a few of those advantages of IEC Registration:
The IEC allows the market reach of businesses around the globe and places a product in front of the world. This code streamlines international trade transactions and removes extra paperwork or the necessity to renew it frequently. With the IEC, businesses extend their reach beyond India.
The schemes and the associated tax benefits offered by the government can be availed for developing international trade by businesses with an IEC. Registration has been made simple by the DGFT through its website. The applicant need not possess a Digital Signature Certificate for registration. Even non-registered businesses can apply; Aadhaar authentication is also accepted.
The IEC helps businesses grow by opening opportunities for expansion globally. It enhances business relationships in quality while observing trade with proper respect of customs regulations. The code offers lifetime validity, hence a long-term solution for companies seeking operations on an international level.
To get an Import Export Code (IEC) in India, you need to submit some key documents. This registration is a one-time process and doesn’t require yearly filings, but it’s important to keep your information up to date.
The Proprietor may make an application for IEC if the proprietor has a PAN card, bank account, and proof of address for business. The DGFT shall also physically verify the address at the time of issuing the code.
The partnership firms must present their partnership deed, PAN card, and proof of address. All the partners shall be eligible to file in the name of the firm.
For LLPs, a partnership deed along with an incorporation certificate is mandatory. Valid bank account and business address proof for the firm is also required.
A private limited company needs to provide a certificate of incorporation, PAN card with an address proof of the business. The firm has to get registered under Indian law.
In addition to private limited companies, public limited companies also make use of these documents wherein they use a certificate of incorporation, PAN card, and address proof.
Societies, trusts, and even Hindu Undivided Families or HUFs can also apply for an IEC. The documents they require are a registration certificate, PAN card, and address proof, for which they would have to produce.
The Importer Exporter Code (IEC) is controlled by laws and policies in India. These rules help businesses trade safely and follow global trade laws.
The Foreign Trade (Development and Regulation) Act, 1992 allows the Central Government to manage international trade. It makes the IEC mandatory for anyone wanting to import or export goods. This Act helps businesses follow the right trade rules and encourages more imports and exports.
The Directorate General of Foreign Trade (DGFT) is part of the Ministry of Commerce and Industry. It is responsible for giving businesses their IEC and managing trade policies. The DGFT also issues import licenses for restricted goods and ensures businesses follow the trade laws to improve their reputation globally.
Once businesses get an IEC, they must follow some important rules. They need to update their IEC profile every year. If they don’t, the IEC might get deactivated. The DGFT checks the business address and other details to make sure everything is correct. Not following these rules can cause issues with customs clearance.
India’s Foreign Trade Policy helps businesses trade with other countries. This policy is updated regularly to help businesses grow. The 2015-2020 Foreign Trade Policy helps businesses enter global markets, benefit from government schemes, and follow trade regulations.
IEC registration typically takes 2 to 5 working days after submitting the application, provided all the documents are accurate and complete.
The fee for IEC registration is minimal, typically around INR 500. Additional fees may apply if you use professional services to help with the process.
No, each business entity needs its own unique IEC. You cannot use the same IEC for multiple businesses, even if you own them all.
An IEC is not required for service exporters unless they are availing benefits under the Foreign Trade Policy. However, it’s recommended to have one for smoother transactions.
You can check the status of your IEC application by logging into the DGFT website using your credentials. The portal provides updates on the progress of your application.
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