Import Export Code License is imperative for driven entrepreneurs targeting the global market. It is that essential documentation required by any company that seeks to engage in importing or exporting businesses in India.
Import Export Code License is imperative for driven entrepreneurs targeting the global market. It is that essential documentation required by any company that seeks to engage in importing or exporting businesses in India. It is a 10-digit code with lifetime validity issued by the Director General of foreign Trade (DGFT) of Ministry of Commerce and Industries. The ITC (Indian Trade Clarification) responsible for coding products for international trade classifies certain products as restricted or prohibited goods in their ITC-HS list. While prohibited goods are not allowed to be exported, the restricted goods can be exported by obtaining the license. IEC is mandatory for importers, and it is necessary for availing export benefits from DGFT for exporting merchants.
Import Export Code (IEC) is necessary at multiple points during the trade activity. During imports, it is needed to clear shipping by the customs and it is also required at the banks to transfer money for making imports. Similarly, exports also require IEC to send shipments and it is also mandatory at banks when the exporters have foreign currency transferred directly to their account. Apart from this, IEC is also beneficial for the business in various ways. It helps in launching your business internationally thereby opening up opportunities for exponential growth of your business.
Import Export Code (IEC) registration safeguards the business from illegal or fraudulent import and export activity. The process to apply for IEC is fairly straightforward and simple, and upon applying, the code can be available within a matter of 10-15 days. By obtaining IEC your business can avail subsidies from DGFT, Export Promotion Council, Customs etc. The exporters are not required to file taxes for exports once they file a letter of undertaking with GST. Since IEC has lifetime validity, you are also saved from any further hassle of renewal as it can be used against all exports and imports by the registered company or business. There is also follow up procedures or return filing is required once IEC is obtained.
The application process is done online on the DGFT website and a copy of application is mailed to the DGFT office. The license is issued after careful assessment of the facts produced regarding the export or import transactions. The documents needed for the application include a copy of PAN card, voter id or Aadhar card or passport copy, the companyís or firmís cancelled cheque or a copy of current bank account and a copy of Rent Agreement or Electricity Bill Copy of the premise.
With a few simple steps with the right help to guide you, you can walk straight into the world of global market.