In an age full of deadly competition, everyone wants to expand their businesses beyond the local geographical limitations. However, doing business well is not everyone’s forte. Several procedures and laws need to be followed. There are prerequisite needs like registrations and licenses that need to be in place. IEC (Import Export Code) license is one such requirement If you’re considering importing and exporting internationally.
What is Import Export Code?
The IEC code is a unique 10-digit code that needs to be filed for by Indian companies who want to trade internationally and granted by the DGFT (Director General of Foreign Trade) from the Ministry of Commerce. To import and export from India, having an IEC code is mandatory. This code has lifetime validity. Without the IEC code, Importers merchants cannot import goods, and similarly, exporter merchants cannot avail of benefits from DGFT for the export scheme.
Instances where the IEC Code required
- When an importer needs to clear out his shipments from the customs, then the custom authorities ask for it.
- While an importer transfers money abroad through banks, then the banks need this code.
- When exporting to another country, the customs port requires IEC documents.
- Required by the bank when foreign currency is received in a bank account.
Steps To Apply For Import Export Code
1: Prepare an application form in the specified format – Aayaat Niryaat Form no. 2A and fie the form with the respective Regional office of DGFT.
2: Secondly, it is essential to prepare the required documents to prove your identity, legal entity, and address proof with the respective bank details and the certificate in respect of ANF2A.
3: On the competition of your application, you need to pay a certain fee and file with DGFT via DSC (Digital Signature Certificate).
4: Lastly, after your application is approved, the government will provide you with a softcopy of the IEC code.
Documents required for Import Export Code
- Individual’s copy of Aadhar card, voter ID, or passport copy
- Copy of PAN Card
- A copy of Individual or firm’s cancel check of current bank account
- Copy of Electricity Bill or Rent Agreement of the premise
Benefits of having an IEC code
Upscale your business
IEC helps you to take your products and services to a global platform.
Enjoy several benefits
Having an IEC Code can help your company avail solvent benefits of their import and export from DGFT, Export Promotion, Customs, Council, etc. based on their IEC registrations.
Eliminate filing returns
IEC does not require you to file any returns. Once your company has been allotted an IEC number, there is no requirement to follow any formality to extend its validity.
Uncomplicated processing
It is easier to obtain IEC code from the DGFT within a span of 10 to 15 days after the submission of the application. You don’t require any proof of provision for getting IEC Code.
No renewal
This 10-digit IEC code number has lifetime validity and does not need any sort of renewal. Once you have been granted the code, it can be used for all of your business’ export and import transactions.
If you are trying to expand and scale your business globally, reach out to experts who can help you out through the process. Services such as GST registrations, business registration can be availed as well.
