IMPORTER-EXPORTER CODE
In today’s era, every business wants to expand their market globally to sustain in prevailing market competition. In order to expand their business beyond the domestic market, such businesses need to obtain Importer-Exporter License which is to be issued by Director General of Foreign Trade (DGFT).
Importer-Exporter Code is a 10 digit key business identification number which is mandatory for all the businesses who are engaged in the business of import & export. Where a person import or export of any service or technology, the IEC number shall be required only when the concerned person is availing the benefits under Foreign Trade Policy. Consequent upon introduction of GST, IEC being issued is the same as the PAN of the firm.
IEC can be applied on behalf of proprietorship firm, partnership, LLP, Company, Trust ,HUF or individual.
WHO ALL ARE REQUIRED TO OBTAIN IEC?
1. FOR IMPORT AND EXPORT– No person can carry on the import/export business unless it has obtained IEC code.
2. SHIPMENT CLEARANCE– In case of export of goods, one need to show IEC number for the shipment clearance.
3. CUSTOM CLEARANCE-In case of import of goods also, one need to show IEC number for the custom clearance.
4. PAYMENT-In case importer/exporter has to make or receive payments in regard to the business to be done, one cannot do so without IEC number.
EXEMPTIONS FROM OBTAINING IEC CODE–
Following category of person are exempted from obtaining IEC Code-
- Importer and export by Central Government or agencies or undertakings for defence purpose or other specified lists under Foreign Trade (exemption from the application of Rules in certain cases) Order, 1993.
- Import or Export of Goods made by individual for personal use.
PROCESS OF OBTAINING IEC CODE–
1. Visit the website of DGFT, i.e. dgft.gov.in
2. On the homepage, click on “Services” tab.
3. Through Services tab, go for IEC Profile Management and then ‘APPLY FOR IEC’ option.
4. If already having ID, then login or else first we have to Register.
5. Upon login with valid credentials, the application for applying IEC will open, where following details are to be entered-
a. Details of Proprietor/ Partner/Director/ Karta/ Managing Trustee
b. Bank Information
c. Other details such as preferred sectors of operation
6. Upon successful filing of the application, a requisite fees of Rs 500 is to be paid and application to be submitted.
7. For signing the application , two options are available either Aadhaar E-sign or through Digital Signature Certificate.
8. On successful submission of application, IEC Certificate will be generated
DOCUMENTS REQUIRED FOR IEC REGISTRATION–
1. PAN card of Individual/ Firm/ Company
2. Aadhar Card or Voter ID of Individual
3. Name of IEC and nature of business
4. Cancelled cheques of current bank account of Individual/ Firm/ Company
5. Copy of Rent Agreement and electricity bill
6. GST Certificate
7. Details of Directors, in case of Company
8. Mobile no and Mail id for OTP purpose
UPDATION OF IEC-It is mandatory for all the IEC holder to update their IEC registration every year. If the IEC is not updated within the prescribed time limit, it will be deactivated by DGFT.
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