Import Export Code! Have you ever encountered the term IEC on Television, Newspapers, and thinking about what it actually means?
Is it Independent Electoral Commission, Indian Economic Conclave, or Import- Export Code?
Then you are at the exact right place. Here a complete and basic guide about import export code is given. It would not only be beneficial for the business individuals involved in this but also provide sufficient understanding to a normal being also.
Here the effort would be in explaining all major aspects of IEC code in simpler terms. So starting with its introduction.
What is the Import Export Code?
All the above full forms are definitely satisfying IEC, but when we are relating IEC with trading then IEC is supposed to be an Import-Export Code. It is a ten-digit unique code assigned to an individual/company and is required for every import/export operation. The DGFT is in charge of issuing import-export codes. DGFT stands for Director-General of Foreign Trade. Importer Exporter Code is the full form of IEC, although it is more commonly known as import-export code.
Now the question may be changed from what is Import Export Code to who needs them, and where is it required?
IEC is required by those business individuals who want to expand their businesses overseas or those who are involved in the import and export of goods and services across national borders. Import-Export Code License Online in India is not required for trading personal(does not include manufacturing, trade, and farming) goods. IEC is also needed for those who want to avail the benefit of the government policies with regard to Import – Export.IEC is needed at customs, during bank transfers across boundaries.
As of now, there is mention of benefits of the government policies so for better understanding let’s have a look at the benefits that one gets after obtaining IEC.
Overseas Trading– Import Export Code provides you the facility to expand your business over foreign countries. The basic and most important thing you would need while trading overseas is the Importer Exporter Code. IEC opens your road to expansion and growth on foreign lands.
Export/Import subsidies- The government offers benefits such as export subsidies and excise tax concessions in the case of import. If the import is completed within the specified time period, some tax relief might be available. In the case of exports, the government offers a subsidy on all the export taxes. These advantages are only available to those who are enrolled with the IEC.
Facilitates Electronic Fund Transfer (EFT)– EFT (Electronic Fund Transfer) is a new service offered to exporters that allows them to submit their license fees via the Internet rather than visiting a bank to make the payment. This procedure is being proposed to make electronic payments more convenient. Only electronically filed applications will be accepted.
Now the question in your mind might have shifted from why should I get IEC to how can I get it?
Since the process for registration of importer-exporter code is quite complicated so for a better understanding of it, you should look out for some professional websites about this. But an overall outlook you could easily understand here as well. The overall process is breakdown into five major steps
Step 1. Registration on Government Portal
Step 2. Documentation
Step 3. Application for Import Export License
Step 4. Verification by DGFT
Step 5. Approval and Issuance of IEC Code
From here on you are not at the absolute start of understanding the term Import Export Code now you have oversight about the Importer Exporter Code in your mind as well. But it is advised that if someone is planning to obtain an IEC for their business then they should hire or take consultation from experts in this field. After my research on the topic, I got to know about Professional Utilities on which customers have utmost trust. This will not only improve their chances of approval for the application of IEC but also help them save their time. Time is everything that a business needs.