As we see shoulder to shoulder competition, at its peak, every business wants to flourish and excel beyond the limits of the domestic market. However, not everyone can implement and executive the strategy and idea in a correct manner. Before stepping towards global standing, the business needs to follow several procedure and laws in place and get various registration and license, Import Export Code (IEC) license is one of them which is related to importing and exporting business in India. It is issued by the DGFT (Director General of Foreign Trade). Import Export Code is a 10-digit code which has lifetime validity. Predominantly importers merchant cannot import goods without the Import Export Code and similarly, the exporter merchant cannot avail benefits from DGFT for the export scheme, etc. without IEC.
Documents needed for IEC (Import Export Code) Registration are Individuals or Firms or Companys copy of PAN Card, Individuals voter id or Aadhar card or passport copy, Individuals or companys or firms cancel cheque copy of current bank account, Copy of Rent Agreement or Electricity Bill Copy of the premise.
1) In case where an importer has to clear his shipments from the customs then its needed by the customs authorities.
2) In case where an importer sends money abroad through banks then its needed by the bank.
3) In case where an exporter has to send his shipments then its needed by the customs port.
In cases where an exporter receives money in foreign currency directly into his bank account then its required by the bank.
1) Helps to expand and strengthen your business- Import Export Code will assist you in taking services or product to the global market and grows your business.
2) Several Benefits can be availed- The Companies could avail several benefits of their imports/ exports from the Director General of Foreign Trade, Export Promotion Council, Customs, etc., on the basis of their IEC registration.
3) Filing of returned not required- IEC does not require the filing of any returns. Once allotted, there isnt any requirement to follow any sort of processes for sustaining its validity. Even for export transactions, there isnt any requirement for filing any returns with Director General of Foreign Trade.
4) Easy Processing- It is fairly easy to obtain IEC code from the Director General of Foreign Trade within a period of 10 to 15 days after submitting the application. There isnt any need to provide a proof of any export or import for getting IEC code.
5) No need for renewal- IEC code is operative for the lifetime of an entity and requires no renewal. After it is acquired, it could be used by an entity against all export and import transactions.