In this day and age of cutthroat competition,
everyone wants to expand their business beyond the confines of the domestic market.
However, doing business on a global scale is not for everyone. Before going global,
you must follow several procedures and laws in place, as well as obtain various
registration and licenses. When considering importing or exporting from India, one
of the prerequisites is an IEC (Import Export Code) license. It is also referred to
as the Importer-Exporter Code.
Anyone looking to start an import/export business in
the country must obtain an IEC (Import Export Code). The DGFT is in charge of
issuing it (Director General of Foreign Trade). IEC is a 10-digit code that is valid
for a lifetime. Generally, importers cannot import goods without the Import Export
Code, and exporters cannot benefit from the DGFT for the export scheme, etc. without
the IEC.
Advantage of IEC Registration
The DGFT, Export Promotion Council, Customs, and others
could provide incentives for the companies' imports and exports based on their IEC
registration. There are a few additional advantages listed below.
IEC can help you take your services or products to a global market and grow your
business.
On the basis of their IEC registration, the companies could receive several
benefits for their imports/exports from the DGFT, Export Promotion Council,
Customs, and so on.
It is relatively simple to obtain an IEC code from the DGFT within 10 to 15 days
of submitting an application. There is no requirement to provide proof of any
export or import in order to obtain an IEC code.
IEC code is valid for the life of an entity and does not need to be renewed.
After obtaining it, an entity could apply it to all export and import
transactions.
Situations Where IEC is required
Getting an IEC registration for import and export
business and commercial purposes is critical. IEC does not need to import or export
goods for personal consumption. The areas where IEC is necessary are listed below.
The customs authorities require it when an importer has to clear his shipments
through customs.
When an importer sends money abroad through a bank, the bank requires it.
When an exporter needs to send his shipments, the customs port requires it.
The bank requires it when an exporter receives money in foreign currency
directly into his bank account.
Situations Where IEC is not required
According to the most recent government circular, IEC
is not required for all GST-registered traders. In all such cases, the trader's PAN
will be interpreted as a new IEC code for the purposes of import and export. Import
Export Code (IEC) is not required if the goods exported or imported are for personal
use only and are not used for commercial purposes. Import/Export done by Government
of India Departments and Ministries, as well as Notified Charitable Institutions, do
not require an Import Export Code.
On the basis of their IEC registration, the companies
could receive several benefits for their imports/exports from the DGFT, Export
Promotion Council, Customs, and others. Here is the process to get these benefits.
To begin, you must prepare an application form in the specified format - Aayaat
Niryaat Form ANF-2A format - and file it with the appropriate DGFT Regional
office.
Second, you must prepare the necessary documents pertaining to your identity and
legal entity, as well as address proof with your bank details and the ANF2A
certificate.
Once your application is complete, you must file it with DGFT via DSC (Digital
Signature Certificate) and pay the IEC Registration fee.
Finally, once your application is approved, you will receive a soft copy of the
IEC Code from the government.
Document Requirements
You must prepare the appropriate documentation for your
identification and legal entity, as well as an address proof with your bank account
information and a certificate for the Ayat niryat form. The following documents are
required for IEC Code Registration:
PAN Card copy of an individual, firm, or company.
Copy of an individual's voter id, Aadhar card, or passport.
Individuals, corporations, and partnerships cancel cheque copies of current bank
accounts.
Copy of the premise or a copy of the rental agreement or an electric bill
A self-addressed envelope for registered mail delivery of the IEC certificate.
What Aleph INDIA Has to Offer
'Aleph INDIA' is a reputable service provider and one
of the world's leading consulting firms, specializing in ECO-MARK, ISI Certification
Services, and FMCS Consultancy.
Foreign trade necessitates an in-depth working knowledge of the most recent
rules and provisions in effect from time to time.
Aleph INDIA will act as your liaison partners in the areas of licensing and
policy procedures, guiding you through the entire licensing process with the
Director-General Foreign Trade. We are up to date on the most recent
export-import policies and procedural formalities pertaining to your line of
business. Our service and follow-up ensure that our clients achieve their
objectives in the shortest amount of time possible.
We are a group of professionals with in-depth knowledge of the most recent
industrial rules and provisions. According to the Directorate General of Foreign
Trade, our professionals will assist you in completing all licensing formalities
(DGFT). The DGFT organization is affiliated with the Ministry of Commerce and
Industry. This system has been actively involved in foreign trade promotion and
regulation. It also supports liberalisation, globalisation, and export promotion
while keeping the country's interests in mind.
With our expert and dependable DGFT Consultants, we are based in Delhi NCR,
India, and provide DGFT Liaisoning Services. We work as a Liaison in Import
License and other related activities. In addition, our team provides the best
assistance to merchants and traders in the industry. We assist with customs
licences and other permissions.
Our services are both legally sound and highly professional in the field. They
cover import and export code number (IEC), advance & EPCG licence application,
Industrial & IEM License Approval, and EOP Extension Matter, among other things.
frequently asked questions (FAQ)
Import requires the acquisition of an IEC code. Certain types of importers, however, are free from acquiring an Import Export Code. Details on the types of importers who are excluded from getting an IEC can be found in Paragraph 2.8 of the Handbook of Procedure, Vol.-I on the DGFT website.
Select your items. Only the IEC for the product category for which you request will be granted. You can apply for IEC in additional categories, but you'll have to pay a charge for each one.
If you haven't already done so, choose a name for your business. New companies wanting to undertake export-import operations should think about names that finish in Exports (eg: Aleph INDIA).
If your company isn't already registered, you'll need to do so.
Apply for an IEC - Importer Exporter Code with DGFT online and pay a cost.
EDC Registration - Register your export business at the closest port (airport or seaport).
Application Form:
To begin, create an application form in the required format - Aayaat Niryaat Form ANF-2A - and submit it to the appropriate DGFT Regional office.
Documents:
Second, you must prepare the appropriate documentation for your identification and legal entity, as well as an address proof with your bank account information and an ANF2A certificate.
Filing Application:
After you've finished your application, you'll need to submit it to DGFT via DSC (Digital Signature Certificate) and pay the IEC Registration charge.
IEC Code:
Finally, if your application is granted, the government will send you a soft copy of the IEC Code.
As a result of the implementation of GST, the IEC issued is the same as the firm's PAN. The IEC, on the other hand, will be issued independently by DGFT based on an application. The type of company that applies for an IEC can be a sole proprietorship, a partnership, an LLP, a limited company, a trust, a HUF, or a society.
As a result of the implementation of GST, the IEC issued is the same as the firm's PAN. The IEC, on the other hand, will be issued independently by DGFT based on an application. The type of company that applies for an IEC can be a sole proprietorship, a partnership, an LLP, a limited company, a trust, a HUF, or a society.
The top ten commodities imported by India in 2020-21, according to market and consumer data firm Statista, were:
Petroleum in its purest form (21.6 percent )
The precious metal gold (5.9 percent )
Products derived from petroleum (5.8 percent )
Briquettes, coal, and coke (4.7 percent )
Precious and semi-precious stones, including pearls (4.7 percent )
Components for electronics (3.4 percent )
Instruments for telecommunication (3 percent )
Chemicals that are made up of organic compounds (2.5 percent )
Machines used in industry (2.5 percent )
Machines and equipment powered by electricity
Import Export Code (IEC Code) is a ten-digit number with permanent validity
given by the Directorate General of Foreign Trade under the Ministry of
Commerce and Industry to any genuine person/company for the purpose of
import/export. Importers are not permitted to proceed without this code, and
exporters are not permitted to benefit from DGFT, customs, or the Export
Promotion Council if they do not have this code.
No, the IEC serves as the principal document for recognition as an
exporter/importer by the Government of India.
The list of scanned documents required for IEC Registration is as under:
Photograph of the applicant (Scanned copy)
Scan copy of Self-attested PAN Card of all Partners/Directors
Entity's Pan Card in case of Firm/Company (Scanned copy)
Scan copy of Cancelled Cheque/ bank certificate of the Entity or individual (in case of the IEC code application is to be done on Individual's Name)
Following are the steps to get your IEC registration done:
1. Submit the documents required to Register IEC
2. Get the Documents Verified
3. Fill the IEC Registration Form online in Aayaat Niryaat Form 2A (ANF 2A).
4. For IEC Print, you may get in touch with Ebizfiling.com
An application can be amended as many times as it needs to be before it is
submitted for processing. You must re-enter your PAN, cellphone number,
and email address.
The requirement of documentation in case of "modification of IEC" is the same
as in the case of fresh application of IEC.
Photograph of applicant
Self attested PAN Card of applicant
Entity Pan Card (if any)
Pre-printed Cancelled Cheque/ bank certificate of the applicant
Address Proof of the Entity (Sale Deed/ Rent Agreement/ Latest
Electricity Bill/ Latest Mobile Bill/ Latest Landline Bill).
1. The documents are not proper (not clear etc.)
2. Address proof is not attached
3. Name and address do not match with the documents
4. IFSC is not mentioned on Bank Certificate
4. Wrong DGFT RA is selected
Yes, a PAN card number is required for IEC Code registration. A self-certified photocopy of the applicant's PAN Card must be supplied with the application.
On the basis of IEC, companies can obtain various benefits on their exports/imports from DGFT, Customs, and Export Promotion Council, etc.
Following are the documents required for a foreign national for obtaining IEC code:
1. Board Resolution
2. Memorandum of Association
3. copy of Passport
4. And all documents prescribed above for Indian Citizens.
Duly filled application form along with application fee of Rs.200/ and An affidavit on stamp paper of Rs.100/- duly notarized.
No, IEC issued certificates are not shipped or delivered. The IEC will be published in digital format. The applicant must get an IEC print of the digitally signed IEC.
No. However, as a branch, the name of each concern controlled by such a business may be included in the IEC of the firm whose name PAN exists.
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In the era of globalization, world trade is growing rapidly and henceforth, Manufacturing and Import/Export businesses are also growing drastically...View More
The Economy of India-the fastest developing economy on the globe with the capabilities that help it matches up with the biggest international...View More
Anything a person buys from food to cars, clothes to electronics, branded to unnamed products there is always a question that wanders in one’s...View More
Would you like to speak to one of our Senior Technical advisers over the phone? Just submit your details and we’ll be in touch shortly. You can also email us if you would prefer.
