What is an IEC?
Import Export Code (IEC) is referred to as a 10 digit identification number which is issued by the Director-General of Foreign Trade, Department of Commerce, Government of India. It is also known as Importer Exporter Code. It’s impossible to deal with export or import business without this code. IE Code registration is permanent registration that is valid for life term. Hence, there’ll be no hassles for updating, filing, and renewal of IE Code registration. It is in continuance till the business exists or the registration is revoked or surrendered. Further, unlike tax registrations like GST registration or PF registration, the importer or exporter does not require to file any filings or follow the other compliance requirement like annual filing.
Importers need export import codes when their items are passed by customs and when money are delivered outside. it is important when money is sent to exporters' bank accounts and when cargo are shipped in.
With the passage of time, the number of enterprises desires to break through local market boundaries and enter in global marketplaces. There are particular obligations and processes that must be followed by a business owner who intends to expand their firm into foreign waterways. Importing and exporting must also be done with the proper licencing and registration.
What are the needs for IEC registration?
Importers and exporters are required to get the Import Export Code in the following circumstances:
- Customs officials will ask importers for an Import Export Code when they need to clear their cargo through customs.
- When importers send money overseas through a bank, the bank will request an Import Export Code.
- The customs port will ask exporters for an Import Export Code when they have to submit their cargo.
- When exporters are paid in foreign currency and the funds are put straight into their bank account, the bank will request an Import Export Code from the exporter.
What is the registration process?
- Apply an application of Aayaat Niryaat form no. 2A and submit the application to the Director General of Foreign Trade's Regional Office in your area.
- Preparing the documents, such as address proof, identity proof, bank account information, and the Aayaat Niryaat form no. 2A certificate.
- Attach the documents to the application and file it with the Director General of Foreign Trade using a Digital Signature Certificate.
- Pay the registration fees for the Import Export Code.
- After your application is granted, the government will email you a soft copy of the Import Export Code.
What are the benefits of IEC?
Import Export Code registration can assist you in extending your business and reaching out to a broader market on a worldwide scale, allowing your company to develop by leaps and bounds.
No filing of returns
If you register for Import Export Code, you will not be required to file any returns. You will not be needed to follow any form of process to ensure that the code's validity is maintained once it has been assigned to you. You will not be obliged to submit returns with the Director General of Foreign Trade, even for export transactions.
An Import Export Code is valid as long as the entity survives. As a result, anyone who own this code will never have to worry about it expiring.
obtaining an Import Export Code from the Director General of Foreign Trade is simple and clear. Once an application is submitted, it is normally processed within 10 to 15 days.