Everything you need to know on what is IEC (Import Export Code) and Advantages of IEC for Business

All businesses which are engaged in Import and Export of goods are required to register for Import Export Code. Import Export code  is a ten digit number granted by Directorate General of Foreign Trade (DGFT) under Ministry of Commerce and Industry, to any genuine person/ company for carrying out import/export. In this blog information on what is IEC, documents needed for IEC Registration, Advantages of IEC for business and other relatable information on Import Export Code, and  is mentioned.

What is IEC?

Companies and individuals that want to start an import-export needs to obtain IEC code. The IEC code for service export and import is a ten-digit code that is valid for a lifetime and is issued by the DGFT (Director General of Foreign Trade). If you don’t have an IEC code, you won’t be able to import or export anything. In simple terms if a company wants to import export there product than it is mandatory for them to obtain Import Export Code.

Advantages of IEC Registration for Company

IEC enables businesses to trade internationally without difficulty. The following points will assist you in understanding the advantages of IEC for business:

• On the basis of their IEC registration, the companies could receive many incentives for their Exports/Imports from the DGFT,  Customs, Export Promotion Council, and others.
• IEC codes are valid for the lifetime and do not need to be renewed. Once IEC is obtain an entity might apply it to all export and import transactions.
• Import Export Code can help you expand your business by bringing your services or products to a global market.
• The IEC holder does not need any returns to be filed. Also, there is no requirement to file any returns with the DGFT for export transactions.

Documents needed for IEC Registration

• The list of scanned documents required for IEC Registration is as under-:
• Scan copy of Photograph of applicant
• Scan copy of Self attested PAN Card of all partners/Directors
• Scan copy of Entity’s Pan Card in case of Firm/Company
• Scan copy of Cancelled Cheque/ bank certificate of the Entity or individual (in case the IEC code application is to be done on Individual’s Name)

How does one obtain an Import Export code, particularly for exporters and importers?

• You must fill out an application form, such as the ANF 2A, and submit it to the DGFT.
• In addition to the form, you must submit all of your identification documents
• Once you’ve completed this, you’ll need to send it to DGFT with a DSC (digital signature certificate) and pay the required price to register for Import Export Code.
• The government will send you a soft copy of the IEC after your application has been granted.

FAQs on Import Export Code for Business

1. What is the purpose of IEC?

IEC Code is required to import or export in India. Unless specifically exempted, no person or business may import or export without first obtaining an IEC Code Number.

2. Is there a form for applying for an IEC?

Yes. For IEC grant, an online application (ANF 2A format) must be submitted to the DGFT portal.

3.  What is the time period of Import Export Code?

An IEC assigned to an application has indefinite validity, although it is necessary to renew the IEC once a year to avoid it being deactivated. There will be no fee for updating the IEC if it is done between April and June each year.

4. Who is eligible for Import Export Code?

An IEC can be obtained by an individual or a firm that want to conduct international commerce. Individuals can apply for IEC using the name of their firm or their own name.

5. Who is is charge of issuing IEC?

The Directorate General of Foreign Trade (DGFT) of the Ministry of Commerce, Government of India, issues IECs in electronic form (e-IEC).

Suggested Read: FAQs on IEC Registration 

Conclusion

Import Export Code is essential for a company, as it will help in smooth functioning of import export trade globally. If the products being exported or imported are for personal use and not for commercial purposes, than Import Export Code (IEC) is not required. When exporting goods from India, all exporters must provide their IE Code. Furthermore, the RBI now requires that anyone importing or exporting services include the IE Code in all overseas payments to their bank account. As a result, everybody engaging in import or export in India must have an IE Code.