IMPORT EXPORT CODE
Businesses involved in import or export operations in India must obtain an Import & Export Code, also known as the IEC number. This ten-digit identifier is issued by the Directorate General of Foreign Trade (DGFT).
The IEC registration certificate is compulsory for businesses engaged in import and export activities. Hence, before starting imports into India, importers must ensure their entity has both GST registration and an IE code, crucial for customs clearance.
Failure to possess both the IE code and GST registration can lead to goods being detained at the port, incurring demurrage charges, or even facing potential destruction.
The Import Export (IE) code is a vital prerequisite for venturing into the international market as it facilitates business growth and development to a considerable extent.
STEPS FOR APPLYING THE IEC CODE
Ensure Valid Login Credentials for the DGFT Portal (After Registering).
The IEC application may be submitted on behalf of various types of firms, including Proprietorships, Partnerships, LLPs, Limited Companies, Trusts, HUFs, and Societies.
The firm must possess an active Permanent Account Number (PAN) and provide details such as the Name as per PAN, Date of Birth, or Date of Incorporation.
Additionally, the firm must maintain a bank account in its name and possess a valid address before initiating the application process.
Documents Required For IEC Registration
PAN CARD
AADHAR CARD
INCORPORATION CERTIFICATE
CANCELED BANK CHEQUE
RENTAL AGREEMENT
ELECTRICITY BILL
Advantages of IEC
There are numerous advantages to obtaining an Import Export Code, a few of which are outlined below:
International Market Access: The IE code enables businesses to access the global market, facilitating smoother entry for international Indian companies and fostering opportunities for growth and expansion.
Online Registration: The process of obtaining the IE code is entirely online, making it hassle-free with minimal document submission requirements.
Lifetime Validity: The IE code registration is valid for the lifetime of the business, eliminating the need for frequent updates, filings, or renewals. It remains valid until the company exists or the registration is revoked or surrendered.
Minimal Documentation: Obtaining an IEC does not necessitate extensive documentation.
Prevention of Illegal Goods Transportation: Authentic information is a fundamental requirement for obtaining an Import-Export code, deterring the transportation of illegal goods.
Access to Benefits: Registered business entities can avail themselves of various benefits, including subsidies from Customs, Export Promotion Councils, or other authorities. Exporters can benefit from GST LUT filing, enabling tax-free exports, or claim refunds on taxes paid for taxable exports.
Simplified Compliance: Unlike other tax registrations, importers and exporters are not subject to specific compliance requirements such as annual filings or return filings.
Get Import Export Code
IEC Terminology
AES: Automated Export System
The Automated Export System (AES) is utilized by U.S. exporters to electronically declare their international exports to the census bureau, aiding in the compilation of U.S. export and trade statistics.
FTR: Foreign Trade Regulations
Foreign Trade Regulations (FTR) encompass laws governing trade practices, often associated with antitrust regulations. These regulations involve government oversight of unfair competition methods and deceptive business practices.
POA: Power Of Attorney
A Power of Attorney (POA) or Letter of Attorney is a written authorization empowering an individual to represent or act on behalf of another in private affairs, business dealings, or legal matters. The individual granting the authority is the principal, grantor, or donor, while the authorized party is the agent or attorney-in-fact, in some common law jurisdictions.