All organisations require Import-Export Code (IEC) registration. The individuals do not require it.
Persons having IEC can receive RCMC registration. Registration-Cum-Membership Certificate (RCMC) verifies an exporter dealing with products listed with company. It requires approval of the Indian Government. The Export Promotional Councils or commodity board issues the license. It is issued for 5 years. An exporter has to maintain his mainstream interest in the application.
The Need for Import Export Code
Import Export Code is required to clear the shipments from the customs authorities. The importers shall require the code when they wish to send funds to overseas. The customs port will ask the exporter for an Import Export Code while exporters wish to make exports. The exporters will require to receive payments in foreign currency in their Bank accounts.
How to Apply for Import Export Code/IEC Registration
The following is the procedure to apply for Import Export Code:
Create an application form in the Aayaat Niryaat form no. 2A format. File the application with the concerned Regional Office of the Director General of Foreign Trade. Gather your documents, such as address proof, identity proof, etc. along with bank details and the certificate with regard to Aayaat Niryaat form no. 2A. After completing the application, attach the documents and file the form with the Director General of Foreign Trade using Digital Signature Certificate. Pay the applicable fee for Import Export Code registration. After the approval of application the Import Export Code shall be sent in a soft copy.
Benefits of Import Export Code Registration
The following are the benefits of registering for Import Export Code:
Business expansion: Registering for Import Export Code will help you in expanding your business and reaching out to a larger market on a global scale, thereby helping your business to grow by leaps and bounds.
No return filing: Registering for Import Export Code will mean that you need not file any returns.
No requirement for renewal: The validity of an Import Export Code lasts until the entity exists. As such, those who hold this code will not have to ever worry about renewing it.
Simple processing: Obtaining an Import Export Code from the Director General of Foreign Trade is fairly simple.
Other benefits: Companies that register for Import Export Code could make the most of several other benefits offered by customs, the Export Promotion Council, and the Director General of Foreign Trade.
When is it not compulsory to have an Import Export Code?
The Government of India recently issued a circular according to which an Import Export Code is not compulsory for traders with GST (Goods and Services Tax) registration. If a trader is registered under GST, his/her PAN will be used as his/her new Import Export Code for import and export purposes. An Import Export Code will not be required if the goods that are being imported or exported are not done for commercial reasons, but for personal purposes. Imports or exports carried out by ministries and departments of the Indian Government, or notified charitable institutions, will not need an Import Export Code.
It is has been clarified vide Trade Notice No. 39/2018-19 dated 12th December 2018 that a cheque without a pre-printed name of the account holder will not be acceptable. Further, the pre-printed cheque can be of savings account or current account. The documents are to be uploaded in GIF or JPEG format. The file should not be more than 5 MB.
Import Export Code Issuance
The IEC authorities will receive the applications. The application must contain all documents and proof of fee. Allocation of the IEC is sent to the applicant via a hyperlink. The certificate can be downloaded and printed.
In the event of false or incomplete information, the IEC would hold the applicant criminally liable. The application shall be suspended or cancelled. The IEC holders must update their profile immediately after issuing of Certificate. The issuance of import and export of the code is automatic. Regional authorities can verify its correctness online.
Import Export Code (IEC)
Import Export Code or IEC is a 10-digit code that a business or a person requires to import or export goods and services. This DGFT (Director General of Foreign Trade), Ministry of Commerce and Industries, Government of India issues the code. It has lifetime Validity. This code includes importer exporter code, the license, the number, IE code, IE license, etc. You can issue this code in the name of your company. The code shall be valid for all division/units/factories/branches of the applicant. Import Export Code or IEC is a 10-digit code that a business or a person requires to import or export goods and services. The code has lifetime Validity. It take 15 working days to generate the code.
This code has many names, like importer exported code, import-export code, import-export license, import-export number, IE code, IE license, etc. You can issue this code in either your name or under the company’s name. Once issued, it is valid for all its division/units/factories/branches.
The validity of IE Code
IE Code listing is permanent registration which is valid for a lifelong. Hence, there will be no troubles for updating, filing, and restoration of IE Code registration. The department may withdrawn the code. The registration is one time only. Therefore businesses should obtain IE code.
All importers or exporter of goods/services from India have to obtain IEC. The eligible organisations have to apply for IEC to the Director-General of Foreign Trade.
The DGFT issues the code. The applicant must submit copies of identification and address proof along with a proof of operational bank account. The Bank account must be in the name of the applicant.
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