Import Export Code (IEC) in India
INTRODUCTION
Globalization has given Indian businesses a huge opportunity to access global markets to sell and buy goods and services not only in India but also abroad. In order to import or export goods outside the country, it is mandatory to obtain the Import Export Code. Importer-Exporter Code (IEC) is a key business identification number that is mandatory for the export or import of any service or goods. It is a 10-digit alphanumeric number issued by the Directorate General of Foreign Trade (DGFT).
WHO CAN APPLY FOR IMPORT-EXPORT CODE (IEC)
- Sole proprietorship,
- Partnership,
- Company,
- Limited Liability Partnership
- Trust
- Hindu undivided family (HUF)
- Society
Here to note that IEC is not required for goods for personal use, which is not connected with trade, manufacture, or agriculture
VALIDITY PERIOD OF IEC
An IEC allotted to an applicant shall be valid for a period of 12 months. Earlier IEC code was given for a lifetime. However, from notification no. 58/2015-2020 dated February 12, 2021, of DGFT an amendment was made relating to IEC scrapping the lifetime validity to an annual one. Furthermore, an IEC holder must ensure that the details in his IEC are updated electronically between the periods of April-June every year. In case of no change in details available with the DGFT, online confirmation of IEC details is required. Thus, the IEC needs to be renewed every year, failing which an IEC will be deactivated if not updated within the stipulated time. An IEC is so-deactivated can be activated upon successful update.
WHEN IEC REQUIRED
- This is required by the customs authorities when an importer has to clear his shipment from customs.
- The bank requires it when an importer sends money abroad through banks.
- This is required by the customs port when an exporter has to dispatch his shipment.
- This is required by the bank when an exporter receives money in foreign currency directly into his bank account.
PROCEDURE OF REGISTRATION
The application process for obtaining IEC is completely online through the DFGF website i.e. https://www.dgft.gov.in
Upon Filing the application form (ANF 2A format) along with required documents and paying the required fee, the IEC code will be generated by DGFT. You can take a printout of your certificate once the IEC code is generated
DOCUMENTS REQUIRED:
- PAN card of Entity
- Individual’s Voter id or Aadhar card or Passport,
- Canceled check copy of current bank accounts of the individual or company or firm
- Copy of rent agreement or electricity bill
BENEFIT OF REGISTRATION:
Expansion of business
IEC helps you take your services or products to the global market and grow your businesses.
Availing several benefits
The entity can get many benefits of their import/export from DGFT, Export Promotion Council, Customs, etc. based on their IEC registration.
Easy processing
It is quite easy to get the IEC code from DGFT within 10 to 15 days of submission of the application. Proof of any export or import is not required to obtain an IEC code.
RCMC REGISTRATION AND WHEN REQUIRED
RCMC is a registration-cum-membership certificate issued by the Export Promotion Council body under the Government of India. It is required for businesses that are concerned with the export of restricted products and who want concessions under foreign trade policy such as duty was withdrawn.
CONCLUSION
With the advent of globalization, developing countries like India and others have rapidly accessed the opportunity in the global market to trade their domestic products and services, resulting to meet the International standard and business with simplicity. Whereas, commencing Import or Export from India mandatorily require the 10 digit alphanumeric key business identification number to be issued by the Directorate General of Foreign Trade (DGFT)
Author-Mr. Ajay Kacher (M.Com, LLB, CS), is a Legal Associate in IP & Legal Filing, In case of any queries please contact/write back to us at support@ipandlegalfilings.com.
