In this era, everyone wants to expand their business beyond the domestic territory because of the highly competitive market while it is not an easy task. Prior to the setting up operations outside the domestic territory one need to comply with rules regulations prescribed by the Indian government. If you’re thinking to import / export out of India you would have to obtain IEC (Import Export Code) license.
IEC (Import Export Code) registration is mandatory for everyone who is willing to start the import/export business. IEC is granted by the DGFT (Director General of Foreign Trade) which is a 10-digit code. Import Export Code is valid throughout the life of the entity.
Predominantly goods cannot be imported without obtaining the IEC (Import Export Code) registration. Besides this, exporters are not eligible to avail benefits such as export scheme granted by the DGFT without IEC registration.
In which situation IEC registration is mandatory?
Under the following situations, IEC registration is mandatory:
• IEC registration is asked by the customs authorities when the importer has to clear shipments from the customs.
• If the importer has to send money abroad via banks.
• At the time shipment has to be sent by exporter then IEC registration is asked by the customs port.
• IEC is asked by the banks at the time money is received by the exporter in foreign currency directly in his bank account.
In which situation IEC registration is not mandatory?
Under the following situations, IEC registration is not mandatory:
• Recently government issued the circular as per which, IEC registration is not mandatory for all traders who have obtained GST registration. Therefore for the purpose of import and export, PAN of the trader shall be considered as IEC code.
• If the goods imported or exported for the personal purposes then IEC registration is not mandatory to be obtained.
• IEC (Import Export Code) registration is not required by the Government of India Departments and Ministries, Notified Charitable institutions for the purpose of Export/ Import.
What are the benefits of IEC (Import Export Code) registration?
There are numerous benefits of IEC Registration; some of them are as follows:
1. Business Expansion
2. To avail various benefits from DGFT, Export Promotion Council and Customs etc.
3. No requirement of renewal – Effective for the lifetime of an entity
4. Easy to obtain from DGFT
Mandatory Documents for IEC Registration
Following documents are required for the purpose of IEC Code Registration:
• Copy of PAN of Individual/ Firm/ Company.
• Identity Proof such as voter id or Aadhar card or passport copy of Individual/ Firm as the case may be.
• Copy of cancel cheque of the current bank account of Individual/Company/ firm (as the case may be)
• Copy of Rent Agreement or Electricity Bill of the premise.
Process for obtaining IEC Registration
Following steps need to be taken for obtaining IEC Registration:
• Firstly one needs to file an application form with the regional office of DGFT in the prescribed format – Aayaat Niryaat forms no. 2A.
• Along with the application form, necessary documents need to be submitted such as identity and address proof, bank details of the applicant & the certificate in respect of the form ANF2A.
• For IEC registration, an application form needs to be submitted with DGFT with the prescribed fees by affixing DSC (Digital Signature Certificate).
• Once an application is approved by the DGFT, IEC Code will be issued in a soft copy to the applicant.
If you are thinking to grow your business beyond the territory then you can reach out to us by posting a query on our website. We will explain you all the formalities that you need to go through.
Source url – http://www.imfaceplate.com/ngoregistration/how-to-apply-for-iec-import-export-code-registration
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