Import Export Code (IEC) Registration

Overview of IEC Registration

The Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industries, issues IEC registration. It is necessary for Indian companies to have IEC registration if companies want to expand their business via Import and Export. Import Export Code is a ten digit code which is issued by DGFT, the purpose of Import Export License Certificate is to regulate and monitor the foreign trade activities in India.

For carrying out Import Export activities in India obtaining IEC registration is compulsory, without having IEC license no business can involve in import export activity. Plus, if any business wants to entertain the benefits provided by the government then getting IEC registration is must. Reserve Bank of India has made it compulsory for all the traders to provide their Import Export Code during any payment transfer.

In the present era of ever-growing competition, businesses, in order to survive their substitutes available in the domestic market, are stepping out of their local presence. With back to back innovations and the generation of new ideas in business, the emergence of e-commerce, business operating in local limits finds it important to operate globally by stepping abroad.

There are several methods to go beyond the domestic level, such as amalgamation for foreign brands, opening franchisee abroad, starting subsidiary or branch office abroad, or through import-export business. Doing business at the global level is not that easy as it sounds.

Import Export Code (IEC) once gave can be utilized by the entity all through its existence and it doesn’t necessarily need any renewal. When the organization has gotten IEC, at that point the organization can involve in import export necessities with no issues.

Important Information about Import Export Code (IEC) Registration

Process of IEC Registration

Till now it is clear that Import Export Code is a ten digit code which is essential for every business to obtain who wants to indulge in import export activities. In India DGFT issues IEC. IEC Registration is the first thing that businesses need to import or export any item from India to some other nation. IEC registration paves the way for many new opportunities for business personnel.

Here Are The Few Benefits Of IEC Registration:

» Expansion Of Business
With the help of IEC business can expand its reach in the global market. IEC provide the opportunity to business to export its goods and products outside the nation’s territory and create a name for oneself in the international market.

» Availing Several Benefits
On the basis of IEC registration businesses can enjoy several benefits given by Export Promotion Council, DGFT, and Customs.

» No Need Of Return Filing
IEC doesn't include in the filing of return. Once IEC is allocated, there isn't any necessity to follow any kind of procedures for supporting its legitimacy. In any event, of export transaction, DGFT doesn't order for filing any return.

» Hassle-Free Processing
Acquiring IEC from DGFT is genuinely simple and same can be gotten within a time of 10-15 days in the wake of presenting the application. No evidence of export or import is required subsequent to getting IEC Registration.

» Free For Lifetime
Once you have obtained IEC you can enjoy its validity till eternity since it is free for lifetime plus there is no need of any renewal.

» Government Authorizes Proof
Import Export Code is a government identity which is issued by the DGFT. At the time of clearance of shipment one can show this identity number.

Documents Required for IEC Registration

The documents needed for IEC registration are as follows:-

» Scanned copy of proof of incorporation/establishment/ registration for the specified entity. This supporting document is mandatory for Registered Society, HUF, Partnership, Trust, Others.

» Scanned copy of Photograph (Passport Size)

» Pan of company/individual/ partnership firm/ LLP

» ID proof of individual - Aadhar card, passport, voter id, Mobile no. and email-id

» You must have a Current or Savings bank account in a bank which contracts and transacts in Foreign Exchange.

» You should have scanned copy of rental/lease deed, sale deed, electricity/phone bill for address verification.

» You are needed to submit the scanned copy of RBI approval letter if an applicant is Non-Resident Indian (NRI) or there is Non-Resident interest in the Company/firm.

» You should have ‘Bankers Certificate’ in the prescribed format OR he should have a scanned copy of ‘Cancelled Cheque’ with Entity’s or Individual’s name pre-printed on it.

» You should have a ‘Debit/Credit card or Net Banking account’ for Online payment of Government Fees of Rs. 500/- only.

» In case of company as applicable, you must have the details of Proprietor and all partners in case of firm or Director

» User should have an active Aadhaar or DSC of the firm’s member for submission.

Types of DSC permissible for IEC application 4

Type Of Applicant Required Class Of DSC Requirements
HUF & Individual Individual bases token for Class 2 & 3 Name should match with that of individual and organization
Other Type Organization based tokens for Class 2 and 3 Name should match with that of Director/ Partner/ Managing partner/ Managing Director as in IEC application

Type Of Applicant Required Class Of DSC Requirements

HUF & Individual Individual bases token for Class 2 & 3 Name should match with that of individual and organization Other Type Organization based tokens for Class 2 and 3 Name should match with that of Director/ Partner/ Managing partner/ Managing Director as in IEC application.

So, are you ready to head with IEC Registration and take a step ahead for running your business in other countries? If you got stuck somewhere in the process of documentation or if it seems confusing, then there is no need to worry, Multifaceted will be actively there to help you, just consult our team and get it done with effortlessly.

New Online Procedure of IEC Registration: Import Export Code in India from July 2020

One can apply for IEC on its website WWW.DGFT.GOV.IN as DGFT is an only authority to issue IEC. At present, DGFT with effect from 1st July 2020 has introduced an updated procedure & a new way to apply IEC online in which DSC would be obligatory to upload. DSC requirement has been announced by DGFT to reinforce IEC issuance procedure and to stop fraud.

IEC or Import export code is issued by DGFT (Director General of Foreign Trade), Department of Commerce, Government of India, which is a ten digit identification number. It possesses lifetime validity. It is also known as “Importer and exporter code” which helps a person import and export goods officially. Importer cannot import goods having no valid IEC. Also, the exporter cannot avail the export scheme benefit accessible from DGFT deprived of having proper IEC Registration.

The Procedures For IEC Registration Are As Follows:

Step 1: Click On . After that, click on the “Apply For IEC” button.

Step 2: You need to enter the Registration Details which are stated below:-

» Register User as “Importer/ Exporter”

» First and Last Name

» Email id & Mobile number of the applicant

» Pincode, District, State and City

Click on the “Send OTP” button after inserting the details. Put the OTP received on mobile no. and mail id. You shall receive a notification comprising the temporary password on your mail id upon Successful validation of the OTP, which you need to change upon your first login. Now, click on “Apply IEC” button & apm; click on start fresh application option once the user registers and log - in to the “Customer Portal” using the identifications entered in step 2.

Step 3: Now, you start filing the details in the IEC registration form which are as follows:-

General Information

» Nature of the Concern

» Firm/Company Name

» PAN of the Establishment

» Insert Name as per PAN Card

» Incorporation of the entity/Date of Birth

» The category of exporter i.e. whether it is a Manufacturer exporter or Merchant exporter or Service provider or Merchant cum Manufacturer exporter or any other category.

» Select the option, whether the firm is located in the Special Economic Zone (SEZ) or not.

» Select the option, whether the firm is located in Electronic Hardware Technology Park (EHTP) Scheme, Export Oriented Unit (EOU) Scheme, Bio-Technology Park (BTP) scheme or Software Technology Park (STP) Scheme)?

» Enter the CIN/ LLPIN in case of LLP/company

» Enter the GST Number

» Enter the mobile no and mail for communication purpose

» Upload proof of incorporation/establishment/ registration for the given entity. This subsidiary document is mandatory for Registered Society, HUF, Partnership, Trust, Others.

» Enter the details of the firm address

» You need to upload supporting documents as “Proof of Address”. This can be any of the following document:

» Rent agreement, Sale Deed, lease deed, mobile, electricity bill, MoU, telephone landline bill, post-paid bill.

» Other suitable documents (for proprietorship only): passport, Aadhar card, voter id.

» A NOC (no-objection certificate) by the firm premises owner in favour of the firm along with the address proof may be uploaded if the address proof is not in the name of the applicant firm.

Select “Save and Next” option after filling the above details successfully.

Now, You Need To Add Details Of Proprietor/ Director/ Karta/ Partner/ Managing Trustee Of The Entity/Establishment Which Includes The Following Agendas:-

» Insert name as per PAN record

» Insert PAN no of the person i.e. Proprietor/ Director/ Karta/ Partner/ Managing Trustee

» Insert Date of birth as per PAN Card

» Address of the Proprietor/ Director/ Karta/ Partner/ Managing Trustee

» Mobile no of the Proprietor/ Director/ Karta/ Partner/ Managing Trustee

Select “Save and Next” button after filling the above details successfully.

» Enter Bank Information Of The Entity

Bank Information’s like Account holder Name, Bank and Branch name account number, IFSC code. You need to also upload cancelled cheque of the bank account or Bank certificate as per the prescribed Performa.

Select “Save and Next” button after filling the above details successfully.

» Now, You Need To Select Other Details I.E. Preferred Sectors Of Operations.

Click on the “Save and Next” button after filling the above details successfully.

» Select The Acceptance Of Undertaking/Declaration And Fill The Place As Well.

After that, click on “Save and Next” button to proceed further

Step 4: Concluding Submission:-

Click on “Sign” button at the lowermost part of the page - after step 3.

» Now, you need to select the mode of submission i.e. either through Aadhaar OTP or Digital signature certificate. Enter the ‘Virtual ID/ Aadhaar number’ and click on get OTP in case of Aadhaar OTP, and submit the form

» Confirm it and proceed to make the payment against application after the signing of prescribed form is done. For Payment (The Application of IEC Fee is Rs 500) you shall be redirected to ‘Bharatkosh’ Payment Gateway.

» Page will be redirected to the DGFT Website after Successful Payment and the receipt shall be displayed to you. You can also download the receipt for your future reference. However, please wait for an hour to reflect the payment from the ‘BharatKosh’ Payment Gateway in case of payment failure.

Explanation For The Users: - The user will receive the IEC Certificate in the email (used at the time of applying for IEC). However, if required, after login the DGFT Website and using “Print Certificate” feature in “Manage IEC” - the User can also download the IEC Certificate. After that, the IEC shall be communicated to CBIC. Moreover, the transmission status can be seen by directing to navigate “My IEC” and checking the ‘IEC Status bar’ with “CBIC Transmission Status”.

Reminder: The applicant must update the PAN of the Signatory under “My Dashboard” tab as well as select “View register digital signature Token” In order SIGN the IEC form.

Exemption of IEC

» The individual involved in import and export of goods for individual reasons and not associated with trade, horticulture and manufacturing are absolved from getting IEC registration.

» People who export/import products to/from Nepal and Myanmar through Indo-Myanmar fringe zones and China with single transfer which doesn't surpass in Indian cash Rs.25,000 doesn't require IEC.

» Exception from acquiring IEC will not be appropriate for export of Special Chemicals, Organisms, Materials, Equipment’s and Technologies (SCOMET) as listed in Appendix - 3, Schedule 2 of ITC (HS).

Key Features of IEC Registration

» No business can indulge in Import/Export activities without taking IEC registration

» It works as a proof that a firm is involve in import/export of goods and products

» Once obtained, an IEC exists for a lifetime. This implies it does not require any renewal.

» It is not mandatory to involve in import or export of goods for individual or legislative purposes.

» EC is obligatory for making foreign bank transfers.

» It is substantial for all parts of importers or exporters business.

When is IEC registration required?

» It is important to get IEC registration done to import and export goods. It passes on the vendor code details with the port through which the items or administrations are being imported or exported. Illicit vehicle of goods is confined, and subsequently IEC helps in diminishing it since it is practically difficult to get import export code without giving the total data of the things being imported or traded.

» Custom authorities will only clear your shipment as an importer if you have an IEC number.

» Bank needs IEC registration in order to send money abroad.

» To make his shipments clear an exporter needs IEC registration at the custom port.

» IEC registration is needed when an exporter receives payment in foreign currency directly into his bank account.

» Only on the basis of IEC registration a government of the other countries verify the trader.

Changes under IEC for Goods and Services Tax

After the execution of Goods and Services Tax in GST system, GSTIN would be utilized for credit stream of IGST paid on import of products. In any case, the PAN is identifier at the substance level of the limit though GSTIN would be utilized as identifier at the exchange level for each import and export. The UIN or PAN would be acknowledged as IEC. All importers required to cite GSTIN in their solicitations notwithstanding IEC.

It is obvious that in the event that anyone expects to maintain the business comprehensively, at that point he/she should obtain the Import Export Code from the DGFT. Without IEC License, one can't carry on the matter of import and export in any condition. From the above-portrayed facts, we can presume that acquiring certification for IEC is not that typical. Discussing its advantages, we can say that there's no cerebral pain of filing any return, the procedure is quite simple, no renewal is required, and so forth.

How Multifaceted Solvere Inc. will help you?

You can contact expert like Multifaceted Solvere Inc. if you want to make your IEC registration more hassle-free.

For Import Export Code (IEC) Registration, please contact us: Multifaceted Solvere Inc., Mobile: +91-8800189338, Contact us