Import Export Code(IEC)

1st December, 2023 - 6:36 am Categories: News & Updates 0 Comments

Everyone wants to expand their business beyond the confines of the domestic market in this era of fierce competition.The development of the internet and technology has made conducting business internationally easier these days.But you must adhere to a number of rules and regulations and obtain the necessary licenses and registrations before expanding your business internationally.One of these requirements if you’re thinking about importing into or exporting from India is an IEC (Import Export Code) license.Another name for it is the Importer-Exporter Code.

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Anyone wishing to launch an import/export business in the nation must have an IEC (Import Export Code).IEC is issued by Directorate General of Foreign Trade (DGFT) which is under Ministry of Commerce, Government of India in electronic form. IEC is a unique 10- digit alpha numeric code issued on the basis of PAN of an entity. To get IEC number the applicant has to pay minimum statutory fees.

An individual or a company who wants to do international business can get an IEC. Individual can use either the name of their company or their company or their name directly to apply IEC. IEC shall not be necessary except when the service provider is taking benefits under the Foreign Trade Policy.

Conditions in which IEC is Necessary

• The customs authorities require it when an importer has to clear his shipments from customs.
• The bank needs the money that an importer sends overseas via banks.
• The customs port requires shipments that exporters are required to send.
• The bank requires it when an exporter receives foreign currency directly into his bank account.

Applicant find the application form by this process

• Visit the DGFT website and/login
• After Linking to IEC or Application of IEC proceed with Register Digital signature details through navigating to My Dashboard View and Register Digital Signature Token
• Read the information and ensure all pre requisites for Digital signature are met and then click on “Register New DSC”
• Select and proceed with your digital signature details

1. Once Pre-requisites for Digital signature is done then user will be able to see list of e-Pass token on dick of Provider List, Select the e-Pass token from the list.
2. Select Certificate for signing from Certificate list, Individual based DSC is only allowed for proprietorship type firms. Refer to the validations mentioned above.
3. Enter your DSC token PIN in the enter Password field.

• After successful signing, success message is displayed.
• Once user successfully register the Digital signature details then you can view the digital signature details under current digital signature details, and you can perform any action on IEC with the active Digital Signature.

For IEC Code registration, the ensuing paperwork is needed

• copy of a person’s, organization’s, or business’s PAN card.
• Aadhar card, passport, or voter ID belonging to the proprietor.
• Evidence of the founding, incorporation, or registration of the company, HUF, proprietorship firm, partnership, etc.
• Utility bills (electricity, phone, or mobile bills) or sale or lease agreements are examples of documentation attesting to the business’s address.
• copy of a person’s or business’s cancelled checks for active bank accounts.
• An envelope with a return address for the IEC certificate to be sent by registered mail.

MODIFICATIONS TO REGISTERED IEC

Changes to the firm’s name, address, ownership in proprietorship firms, or nature may all be requested through a modification request. Requests for changes from IEC holders can only be made online.

Advantages of Registering with IEC

• Expansion of the company– IEC helps you expand your businesses by bringing your goods or services to a worldwide market.
• Enjoying a number of advantages– Based on their IEC registration, the Companies could receive various benefits for their imports and exports from the DGFT, Export Promotion Council, Customs, etc.
• No filing of returns– No returns are required to be filed with IEC. Once granted, it is not necessary to adhere to any kind of procedure in order to maintain its validity. Filing any returns with DGFT is not required, not even for export transactions.
• Easy to process– After submitting the application, it takes 10 to 15 days to receive the IEC code from the DGFT, which is quite simple to obtain. To obtain an IEC code, no documentation of exports or imports is required.
• Not requiring a renewal-IEC code does not need to be renewed and is valid for the duration of an entity. An entity may use it against any export and import transaction once it has been obtained.

Situations in which an import-export code (IEC) is not required

The government’s most recent circular states that not all traders who are registered under GST are required to have an IEC. For import and export purposes, the trader’s PAN will be interpreted as a new IEC code in all such cases. If the goods are being imported or exported for personal use only and are not being used for commercial purposes, there is no need to obtain an Import Export Code (IEC). Obtaining an import export code is not necessary for export/import operations carried out by Departments, Ministries, and notified charitable organizations of the Government of India.

ADVANCED PROVISIONS

• IEC holders must verify online if their IEC details have not changed. Failure to update an IEC within the allotted timeframe will result in the government deactivating such IECs;
• however, successful updates may cause an IEC that has been deactivated to become active again. However, in the event that any other provision of the FTP is violated, this would not affect any other action that might be taken.
• An IEC might be recommended for additional examination. The IEC holder(s) must take immediate action to address any risks that the system flags, or else the IEC will be deactivated.

Author: ADITYA SHARMA, in case of any queries please contact/write back to us via email chhavi@khuranaandkhurana.com or at Khurana & Khurana, Advocates and IP Attorney.