INTRODUCTION
With the rise of global trade and the emergence of a unified global economy, the importance of importers and exporters in India has increased exponentially. The Importer Exporter Code (IEC) is an important component for any business that is engaged in the import and export of goods. The IEC is a ten–digit number, issued by the Directorate General of Foreign Trade (DGFT), to all Importers and Exporters in India. This code is required to be mentioned while submitting any documents related to imports and exports.
The main purpose of the IEC is to regulate the import and export of goods and to ensure that all the necessary documents are in place. The IEC also helps the government to keep track of all the imports and exports and to monitor the trade balance between India and other countries.
It is mandatory for all importers and exporters in India to have an IEC number. This number can be obtained from the DGFT by submitting the required documents, such as the PAN card, GST No., and other documents. The IEC is valid for one year and needs to be renewed every year.
Apart from the IEC, importers and exporters also need to obtain a separate registration certificate from the DGFT, depending on the type of goods they are importing or exporting. For example, some items require prior permission from the DGFT, while some items can be imported without any prior permission.
Importers and exporters are also required to comply with the rules and regulations prescribed by the DGFT. This includes providing all the necessary documents, such as invoices, bills of lading, packing lists, and certificates of origin. They are also required to declare the value of the goods they are importing or exporting, as per the Customs Valuation Rules.
Importers and exporters in India are also subject to the Foreign Exchange Management Act (FEMA) and need to obtain the necessary permissions from the Reserve Bank of India (RBI) before engaging in any foreign exchange transaction.
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Law defining IEC:
The Foreign Trade (Development and Regulation) Act, 1992 says
“Importer-exporter Code Number” means the Code Number granted under section 7
Section-7 Importer-exporter Code Number. – No person shall make any import or export except under an Importer-exporter Code Number granted by the Director General or the officer authorised by the Director General in this behalf, in accordance with the procedure specified in this behalf by the Director General.”
PROCEDURE FOR IEC REGISTRATION
1. Visit the Directorate General of Foreign Trade (DGFT) website– https://www.dgft.gov.in/
2. Click on the “Apply for IEC” button.
3. Fill the online form with the required details.
4. Upload the necessary documents.
5. Pay the application fee online.
6. Submit the application form.
7. Once the application is approved, the Importer-Exporter Code (IEC) will be generated.
MODIFICATION OF IEC
The IEC Update / Modification request are auto approved except for the cases where the Importer/Exporter have done:
a) Change of PAN of the Firm for numeric IECs or
b) Change in Nature of Concern for the firm or
c) Change in Partner/Signatory Details where the nature of concern is Partnership, LLP, HUF, Trust or Society Kindly upload supporting documents in the respective sections for faster processing of your application.
The Directorate General of Foreign Trade (DGFT) has made the process of modification of Importer and Exporter Code (IEC) easier through its online portal.
Procedure to modify IEC code-
1. Login to the DGFT portal.
2. Click on the “Services” tab and choose the “Update/Modification IEC” option.
3. You will be directed to a new page, where you will be required to enter basic details, firm address details, branch details, proprietor/partner/directors/ Managing trustee details, Bank Information, other details.
4. Pay the application fee online Pay the application fee online.
5.Once the details have been entered, click on the “Submit” button.
6.The modified IEC code will then be generated and sent to the email address provided.
You can now use the modified IEC code for trading purposes.
SURRENDER OF IEC
To cancel an Importer Exporter Code (IEC), you will need to apply for cancellation of IEC at Directorate General of Foreign Trade (DGFT) portal.
You can apply for cancellation of IEC by following the steps given below:
1. Go to the DGFT portal and login.
2. My dashboard > IEC > View and manage IEC
3. Click on the “Surrender IEC” option.
4. Reason for Surrendering IEC
5. Attach the necessary documents.
6. Submit the application.
Once the application is submitted, your IEC will be cancelled and you will be issued a confirmation email.
BENEFITS of IEC:
1. Easy Tracking of Exports: The IEC code helps in easy tracking of exports from the exporter’s end. This helps in tracking the progress of the shipment and ensuring on–time delivery.
2. Quick Processing of Shipments: The IEC code helps in quick processing of shipments by the customs department.
3. Simplified Payment System: With the IEC code, payments can be easily tracked and processed. This helps in avoiding any delay in the payment process.
4. Increased Visibility: The IEC code helps in increasing the visibility of the exporter in the international market. This helps in gaining more customers, better partnerships and increased sales.
5. Access to Government Schemes and Incentives: Having an IEC code provides access to various government schemes and incentives for exporters. This helps in reducing the overall cost of the export process.
CONCLUSION:
In conclusion, the Importer Exporter Code (IEC) is an important component for any business that is engaging in the import and export of goods, and is required to be obtained from the Directorate General of Foreign Trade (DGFT). The IEC helps to regulate the import and export of goods and to monitor the trade balance between India and other countries. It also helps the government to track all the imports and exports and to ensure that all the necessary documents are in place. The IEC can be obtained by submitting the required documents, such as the PAN card, GST No. and other documents. The IEC is also subject to the Foreign Exchange Management Act (FEMA) and needs to be renewed every year. The IEC provides various benefits such as easy tracking of exports, quick processing of shipments, simplified payment system, increased visibility and access to government schemes and incentives.
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(Author can be reached at email address [email protected] or on Mobile No. 9718941592)
Disclaimer: The purpose of this article is to provide informational material only. It is not intended to form a contractual agreement of any kind or serve as a substitute for professional advice. Fcs Amit Kumar Sharma has taken all necessary precautions to ensure the accuracy of the information provided herein at the time of publication. We will not be liable for any direct, indirect or consequential damages that may arise as a result of the use of this article or the information contained therein.
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