Import Export Code: an Initial Step to obtain License
Posted: Aug 31, 2018
Every person is going to start a business of Import and Export online in India is required to get his PAN-based Import Export Code (IEC) license from Director General of Foreign Trade (DGFT). DGFT is the agency of the Ministry of Commerce and Industry of the Government of India, responsible for execution of the import and export policies of India. No person or entity shall make any Import and Export without IEC Code Number. So you always need IEC Code Registration.
Import Export Code:
Import Export Code (IEC) is the first and fundamental registration to starting Import Export Business in India. IE code is deemed as the primary document for importing and exporting goods and services into and out to India, whether a person is willing to export his goods and services outside India or he is willing to import his goods and services from outside India. Import export Code (IEC) number is a 10 digit code number which has lifetime validity.
Import Export Code is the first requirement for a business of import-export, but it is not required for the following circumstances:
- Import/Export of goods for personal use, which is not connected with trade, manufacture or agriculture.
- Import/Export by government ministries and departments and certain notified charitable organizations.
Documents Required for Import Export Code (IEC) Registration:
The import-export code can be obtained by a business legal entity whether company or individual. Following are the Mandatory Requirements to apply for IEC Code Number
- PAN Number of individual/Company
- Current Bank Account
- Bankers Certificate from Bank Manager
- IEC Code Number
- Passport Size Photograph of Applicant
- Address proof of Business
IEC Registration: Process
- An application must be made in the Aayaat Niryaat Form 2A (ANF2A) format to the Regional Authority of the Directorate General of Foreign Trade (DGFT) in the region where the registered office of the company is situated.
- After that, prepare the required documents with respect to your identity and legal entity and address proof with your bank details and the certificate in respect of ANF2A.
- Once the application is completed, need to file with DGFT via DSC and pay the required fee for the IEC Registration.
- Once the application is approved then receive the IEC code in a soft copy from the government
Benefits of IEC Registration:
v Expansion of Business:- IEC helps in growing the business and take your product and service to the global market.
v Easy processing:- It is very easy to obtain IEC code from DGFT after submitting the application.
v PAN Based Registration:- The code is provided based on Permanent Account Number of the Business organization.
v No need for renewal: - IEC code is effective for the lifetime of an entity and requires no renewal.
v No filling of returns:- IEC does not require the filing of any returns. Even for export transactions, there is not any requirement for filing any returns with DGFT.
v Availing Several Benefits: - The companies could avail several benefits of their imports/exports from the DGFT, Export promotion Council, customs, etc., on the basis of their IEC registration.
Conclusion for Import Export Code
The necessity of IEC registration cannot be neglected as it is mandatory in nature. Unless one has obtained this registration, the goods or services cannot be imported into or exported from India. Obtaining Importer Exporter Code is mandatory before commencing activities of Import and Export.
This is Anurag Jain, CMO at MyOnlineCA ( India's leading Online Legal Service Provider Company deals in Company and Tax Registration across India.