What is import export code registration?

In this day of strong competition, everyone wants to develop their firm beyond the home market. International business, on the other hand, isn't for everyone. Before going worldwide, you must adhere to a number of procedures and rules, as well as get several registrations and licenses. When importing or exporting from India, an IEC license is required. Importer-Exporter Code is one more name by which it is known.

Anyone wishing to open an import/export business in the country will require an Import Export Code. The DGFT is the one who is in charge of issuing it. IEC stands for International Electrotechnical Commission. It is a 10-digit designation that is valid for a lifetime. In most of the cases, the importers merchants are not able to import products without an Import Export Code, and exporters merchants can’t take use of DGFT incentives which includes export plan, etc., without an IEC.

Situations in Which IEC Is Necessary

When an importer has to clear his cargo through customs, it is required.

In case, when an importer sends money abroad through a bank, the bank requires it.

When an exporter has to convey his shipments, the customs port requires it.

When an exporter receives money in foreign currency directly into his bank account, the bank requires it.

Documents which are required to register for an IEC

The following documents are needed for IEC Code Registration:

A copy of a person's PAN card, a firm's PAN card, or a company's PAN card. Either of them will work.

Voter id, Aadhar card, or passport copy of an individual are needed.

Individuals, organizations, and firms can cancel cheque copies of existing bank accounts.

Copy of the firm or a copy of the rent agreement or a copy of the electric bill should be submitted.

A self-addressed envelope for the IEC certificate's registered mail delivery.

For address verification, you need have a scanned copy of the rental/lease deed, the sale deed, and the electricity/phone bill.

If an applicant is a Non-Resident Indian (NRI) or there is a Non-Resident stake in the company/firm, you must send a scanned copy of the RBI permission letter.

You should have a scanned copy of a 'Cancelled Cheque' with the Entity's or Individual's name pre-printed on it OR he should have a 'Bankers Certificate' in the approved format.

In case of online payment of government fees of Rs. 500/-, you must have a 'Debit/Credit card or Net Banking account.

IEC Registration Benefits 

Expansion of the company IEC can assist you in expanding your business by bringing your services or products to a global market.

Taking Advantage of a Variety of Advantages.

Enterprises may be eligible for incentives from the DGFT, Export Promotion Council, Customs, and many others based on their IEC registration for imports and exports.

There will be no filing of returns.

There are no returns that must be filed with the IEC. Once it has been assigned, there is no need to follow any procedures in order to keep it valid. In case of DGFT for export transactions, there is no need to file any returns.

Processing is simple.

Obtaining an IEC code from the DGFT within 10 to 15 days of filing an application is extremely simple. To receive an IEC code, there is no need to show proof of any export or import.

There is no requirement for renewal.

IEC codes do not need to be renewed because they are valid for the life of the entity. An entity can use it to apply to all export and import transactions once it has obtained it.

When is it necessary to register for an Import Export Code?

The following situations necessitate IEC registration:

Importer's shipments must be cleared by customs authorities.

This code is required when sending money abroad through a licensed bank.

Exporting shipments to other countries.

This code is required by the bank when the exporter receives inward remittance.

This code is necessary for Food Licensing and FSSAI registration.

This code is necessary for APEDA registration.

This number is essential if the exporter receives any type of subsidy.

IEC (Import/Export Code) Registration Procedures

Step 1: Fill out the application form

Firstly, fill out and submit an application form in the guided format (Aayaat Niryaat Form ANF-2A) to the appropriate DGFT Regional office.

Step 2: Gathering Documents

Second, you must gather the necessary identification and legal entity papers, as well as an address proof that includes your bank account details and an ANF2A certificate.

Step 3: Submitting Your Application

You'll need to present your application to DGFT via Digital Signature Certificate and pay the IEC Registration fee after you've completed it.

Step 4: International Electrotechnical Commission (IEC) Code

Finally, if your application is approved, you will get a soft copy of the IEC Code from the government.

Frequently asked questions:

Is there a way to use electronic signatures for the IEC?

Yes, electronic signatures can be used for the IEC. Sole proprietors and other entities other than sole proprietors can utilize E-Signature for Aadhaar virtual ID. Validation is also possible using this system.

Is it feasible to make changes to an IEC application?

Yes, you can make changes to an existing IEC application. The applicant should click to the Manage Services option under Service Registration. After that, proceed to the validate tab, where you'll get information about the DSC. The applicant can make changes by clicking here.

Is the PAN number taken into account for the IEC?

Yes, after the introduction of the GST, the IEC would evaluate the name number.

What are the ramifications of failing to obtain an IEC (Import Export Code) certification?

The following are the ramifications of failing to take the IEC:

There can be no export or import activities.

There can be no remittance.

No remittances can be received by foreign banks.

Is it possible to link the IEC number to the IEC number?

Yes, the applicant can link the IEC number once it has been given. This procedure must be completed online via the DGFT website.

Is it possible for a person to apply for an import/export code?

Yes, anyone can apply for the import export code. This application, however, must be submitted as a sole proprietorship.

Is it possible to obtain an IEC code without obtaining a digital signature certificate?

Yes, even without a DSC, an IEC code can be obtained.

How many IECs can one person apply for?

There is a limit of one IEC per person or business. If the operations are carried out by distinct entities, however, different IECs must be created for each business separately.

Is there anything else I need to do after I submit the IEC code?

There is no extra compliance necessary under the authority for anyone who has applied for the IEC.

10.What exactly do you mean when you say "bank details validation"?

(a) Bank details will be checked using 'PFMS,' and the results will be available the following day. (c) The risk will be marked in RMS, and the IEC will be sent to the user right away. (c) If the bank details validation is successful, the ‘RMS' flag will be removed. (c) If it fails, the 'RMS' Flag will be disabled.

11.Why is IEC registration on the DGFT website required?

You can create your own user profile with it. It allows you to apply for IEC, link IEC, and view IEC dashboard all in one place, as well as simply apply for and track applications. You can also receive notifications via the dashboard, mobile device, or email.