In this age of cut-throat competition, everybody needs to grow their business on the far side of the bounds of the domestic market. Before going international, you wish to follow many procedures and laws in situ and acquire totally different registration and license. IEC (Import Export Code) license is one in every of such stipulations once you’re thinking of importation or commerce from India. It’s additionally called Importer- Exporter Code.
IEC (Import Export Code) is needed by one who is trying to kick-start his/her import/export business within the country. The DGFT (Director General of Foreign Trade) issues the IE code. IEC may be a 10-digit code that features a period validity. Predominantly importers merchandiser cannot import product while not the Import Export Code and equally, the exporters merchandiser cannot avail advantages from DGFT for the export theme, etc. while not IEC.
More and more SMEs have become international in terms of doing business because of the expansion in e-commerce platforms, cloud computing technology and powerful supply networks. Today, a business within India is well able to sell its merchandise to a client in the USA through e-commerce platforms like Amazon or Alibaba. During this state of affairs, having an import export code (IE Code) becomes important in terms of doing business. Any business in India that imports or exports goods or services would need an IE code. In this article, we will glance at the procedure for creating an IE Code application.
Import Export Code (IE Code)
Import & Export Code is to be obtained by the business entity who is trying to import into or export from India. Import & Export Code is popularly referred to as the IEC number. The Import & Export Code is issued by the Directorate General of Foreign Trade (DGFT). IEC could be a ten digit distinctive number. IEC registration certificate is necessary for businesses who are concerned with import and export. Hence, before initiating an import of products into India, an exporter should make sure that the importation entity has GST registration and IE code – each of those are needed to clear customs.
If an exporter doesn’t have IE code and GST Registration, the products are going to be stuck at the port and can begin acquisition demurrage charges or might be destroyed.
Situations wherever IEC is needed
- When a business person should clear his shipments from the customs then it’s required by the customs authorities.
- When a businessperson sends cash abroad through banks then it’s required by the bank.
- When an exporter should send his shipments then it’s required by the customs port.
- When an exporter receives cash in foreign currency directly into his checking account then it’s needed by the bank.
Steps concerned in IEC (Import/Export Code) Registration
Step 1: form
First, you must arrange a form in the specified format – Aayaat Niryaat form ANF-2A format and file it in the Regional office of DGFT.
Step 2: Documents
Secondly, you need to arrange the specified documents with relevance to your identity & legal entity and address proof along with your bank details & the certificate in respect of ANF2A.
Step 3: Filing Application
Once your application is completed, you need to file with DGFT via DSC (Digital Signature Certificate) and pay the specified fee for the IEC Registration.
Step 4: IEC Code
Finally, once your application is approved then you would receive the IEC Code in a soft copy format from the govt.
Documents needed Registration
For IEC Code Registration, the following documents are required as per a Tax Consultant in Chennai:
- PAN Card copy of the Individual or Firm or Company .
- Aadhar card or passport copy or Individual’s citizen ID.
- Cancelled cheque copies of current bank accounts of Individual or company or firm.
- Copy of Rent Agreement or Electricity Bill Copy of the office premise.
- A addressed envelope for delivery of IEC certificate by mail.
Benefits of IEC Registration
A Tax consultant in Chennai says there are many benefits you could avail once you register for IE Code.
Expansion of Business
IEC assists you in taking your services or product to the worldwide market and growing your businesses.
Availing many advantages
The Companies might avail many advantages of their imports/ exports from the DGFT, Export Promotion Council, Customs, etc., on the premise of their IEC registration.
No Filing of returns
IEC doesn’t need the filing of any returns. Once assigned, there isn’t any demand to follow any type of processes for sustaining its validity. Even for export transactions, there isn’t any demand for filing any returns with DGFT.
IEC code can be obtained very easily from the DGFT within ten to fifteen days after submitting the application. There isn’t a need to produce proof of any export or import for obtaining IEC code.
No want For renewal
The IEC code is effective for the period of an entity and needs no renewal. When it’s obtained, it might be utilized by an entity against all export and import transactions.
Cases wherever Export Import Code (EIC) isn’t obligatory
According to the most recent circular issued by the government, IEC isn’t obligatory for all traders who are registered under the GST. In all such cases, the PAN of the trader shall be construed as new IEC code for import and export. Import Export Code (IEC) isn’t needed to be taken just in case the products exported or foreign are for private functions and aren’t used for any business purpose. Export/ Import done by the govt of India Departments and Ministries, Notified Charitable establishments needn’t obtain Import Export Code.
Validity of IE Code
IE Code registration is permanent registration that is valid for lifetime. Hence, there’ll be no hassles for change, filing and renewal of the IEC registration. It is valid until the business exists or the registration isn’t revoked or relinquished. Further, in contrast to tax registrations like GST registration or PF registration, the exporters don’t need to file any filings or follow the other compliance demand like annual filing.
As IE code registration in Chennai is one-time and needs no extra compliance, it’s advised for all corporations and LLPs to get IE code during incorporation.
IE Code Not needed
An IE Code is needed for import of any form of merchandise by a business. However, the subsequent class of persons are exempted from getting an IE Code, depicts a Tax Consultant in Chennai:
- Importer and export by central government or agencies or below takings for defense purpose or different such as list under Foreign Trade (exemption from application of rules in sure cases) Order, 1993.
- Import or Export of products for personal or private use.
Documents needed for IE Code Application
According to a Tax Consultant in Chennai the following are the documents needed for creating an IE Code registration in Chennai.
|TYPE OF COMPANY
|Photo (3x3cms) of the owner.Copy of PAN card of the owner.Copy of Passport (first & last page)/Voter’s I-Card/ Driving Licence/UID (Aadhar card) (any one amongst these).Sale deed just in case business premise is self-owned; or Rental/Lease Agreement, just in case workplace is rented/ leased; or latest electricity /telephone bill.Bank Certificate as per ANF 2A(I)off Cheque bearing name of individual and account number.
|Photo (3x3cms) of the Managing Partner.PAN card copy of the applying entity.Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving Licence/PAN (any one amongst these) of the Managing Partner signed application.Copy of Partnership Deed.Sale deed just in case business premise is self-owned; or Rental/Lease Agreement, just in case workplace is rented/ leased; or latest electricity /telephone bill.Bank Certificate as per ANF 2A (I)Cancelled Cheque bearing name of the entity and account number.
|LLP or non-public Ld. or Section eight Company
|Photo (3x3cms) of the selected Partner/Director of the corporate language the appliance.Copy of PAN card of the entity.Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving Licence/ PAN (any one amongst these) of the Managing Partner/Director signed application.RoC issued Certificate of incorporation.Sale deed just in case business premise is self-owned; or Rental/Lease Agreement, just in case workplace is rented/ leased; or latest electricity or invoice.Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing name of the corporate and account number.
|Society or Trust
|Photo (3x3cms) of the signatory applicant/Secretary or Chief
Executive.Copy of PAN card of the entity.Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving Licence/ PAN (any one amongst these) of the Secretary or Chief Executive/ Managing Trustee signing the application.Sale deed just in case business premise is self-owned; or Rental/Lease Agreement, just in case workplace is rented/ leased; or latest electricity /telephone bill.Registration Certificate of the Society / Copy of the legal instrument.Bank Certificate as per ANF 2A(I)Cancelled Cheque bearing name of the Registered Society or Trust and account number.
|Hindu Undivided Family
|Photo (3x3cms) of the Karta.Copy of PAN card of the Karta.Copy of Passport (first & last page)/Voter’s I-Card/ UID (Aadhar card)/ driving license (any one amongst these) of the Karta.Sale deed just in case business premise is self-owned or Rental/Lease Agreement, just in case workplace is rented/ chartered or latest electricity /telephone bill.Bank Certificate as per ANF 2A(I) off Cheque bearing name of individual and account number.