IEC Registration is a mandatory requirement for any company that wants to sell its products in India. This registration ensures that the product complies with Indian law and that only safe products are sold in the country.
What is IEC Registration
Every Indian business owner engaged in international trade must obtain a special 10-digit code known as an import-export code.
The code is granted by the DGFT of the Ministry of Commerce and does not require any paperwork or renewals.
Importers need IEC in order to transfer funds to foreign banks and clear customs. In order to make international shipments and bank transfers, exporters need an IEC. To sum up, in India, no importer or exporter may legally do business without first obtaining an IEC.
Lex N Tax Associatesis a leading firm offering a wide range of services such as Import Export Code (IEC), Export House Registration, Trademark Registration, Company Incorporation, and Tax Consultancy Services. We are located in Delhi, India, and have been serving our clients for the last few years with excellent results.
We are one of the most reliable firms in this industry. We have gained immense popularity among our customers due to our professional approach towards work and timely completion of projects.
Importance of Import Export Code
International Market Unlocks:
Products can enter the global market since the IE Code is required by import and export companies. The IE code facilitates the entry of Indian companies into the worldwide market, which in turn provides new opportunities for development and progress.
Finding the IE Code is a simple, paperless, and quick process that may be done entirely online.
Less Document Requirement:
Only a few basic documents are needed in India to apply for and receive an IE Code. The following is a list of the paperwork you’ll need to apply for an Import Export Code.
PAN of the applicant
Passport size photo of the applicant
Address proof of the applicant
The registration for an IE Code lasts as long as the company does. As a result, submitting new information or renewing your Import Export Code registration is trouble-free. The IE registration will remain in effect for as long as the company is operational or until it is canceled.
Reduces Illegal Goods Transportation:
Providing genuine details is the primary condition of the Import-Export code. It is impossible to get the IE code without the right information. As a result of this criterion, contraband cannot be shipped.
Benefits of the Schemes:
There are many advantages to using the IE code for both importers and exporters. Businesses that have registered with the Customs and Export Promotion Council or similar agencies will be eligible to receive subsidies from such agencies.
LUT registration under GST allows exporters to avoid incurring taxes on their shipments overseas. If taxes are paid before export, the exporter may be eligible for a refund of those taxes.
The individual doing the importing or exporting is exempt from having to comply with any yearly filing or return filing requirements that are part of other types of tax registration.
Gathering the documents needed to register with the IEC is straightforward. The few necessary items are detailed below.
A copy of the business’s PAN card (not applicable in the case of the proprietor)
Applicants’ Permanent Account Number (PAN) and Aadhaar (or similar) card.
Incorporation certificate/partnership deed
Address proof (energy bill/rent agreement/sale deed of the office location)
Copy of canceled cheque leaf/banker proof or certificate of the current account in the name of the company.
Any kind of business registration: sole proprietorship, partnership, limited private corporations, charitable organizations engaged with import and exports of commodities can register for import-export code, independent of the size.
Importing and exporting items for private use that have nothing to do with commerce, industry, or agriculture does not necessitate an IEC. There is no need for a business setup.
Getting an Import Export License online begins with the registration process. The DGFT government portal is online, where one can register.
Step 2. Documentation
The application process comes immediately following the registration stage. The paperwork is in order and ready to be submitted. As we have said, you can submit your application for an IEC online, and you may already be familiar with the list of required documents.
Step 3. Application for Import Export License
In the following stage, you’ll be able to upload the necessary paperwork alongside the completed forms.
All relevant documentation must be completed and attached to the “ANF2A" (Aayat Niryat Form 2A).
Step 4. Verification by DGFT
Your application will be forwarded to the DGFT after you have submitted it. The uploaded materials will play a role in determining whether or not your application is accepted. Uploading required papers necessitate extreme caution.
Step 5. Approval and Issuance of IEC Code
The last thing you need to do to get your Import Export Code is this. Once DGFT approves your application for an Import Export Code, you’ll receive one. If your application is submitted and accepted electronically, you will be issued an electronic IEC (e-IEC). You will receive an email notification when your e-IEC becomes available on the DGFT website.
People import and export commodities for causes unrelated to commerce, agriculture, or manufacturing.
Imports and exports to and from Nepal and Myanmar through the Indo-Myanmar border areas and China (through the NamgayaShipkila, Gunji, and Nathula ports) are limited to a value of 25,000 per consignment.
Exemption from acquiring IEC must not be applicable for exporting materials, organisms, specific chemicals, equipment, and technology as indicated in the appendix – 3, Schedule 2 of ITC (SCOMET).
Ministries/departments of central and state governments.
Simply said, the profit and loss statements are essential components of any discussion of a company. Our first goal is to protect your company legally. Therefore, we’d be happy to forego some of the potential gains.
In order to make Indian exports more competitive, the government has prioritized trade facilitation to reduce transaction costs and shorten processing times. The Foreign Trade Policy consolidates the numerous aspects of that policy and the government’s efforts toward commerce facilitation for the benefit of import and export trade.
Keep reading if you are interested in learning how IEC might benefit your company! Let’s examine the ways in which IEC can benefit you as an importer or exporter:
1. Overseas Trading:
As a result of the Import Export Code, you’ll be able to extend your company internationally. The Importer Exporter Code is the first and foremost requirement when conducting business on a global scale. Expanding your business internationally is a breeze with the help of IEC.
2. Legalise Business overseas:
You’ll be able to sell your wares overseas thanks to the freedom afforded to you by the code, and you’ll also be able to bring in the supplies your company needs to function. It streamlines and legitimizes your international trade.
3. Online Service:
Now It is possible to get IEC without leaving the comfort of your own home. You can have it delivered to your house if you fill out all the paperwork correctly. Going to the government building quickly won’t be an issue.
4. Subsidies for exports and imports
The government provides incentives, including export subsidies and import excise tax reductions. In some cases, you may be eligible for a tax break if you import goods before the deadline. The government provides a rebate on all export taxes. Those not registered in the IEC will not have access to these benefits.
5. Necessity at Customs:
On the Bill of Lading, specify the importer’s IEC Code for Customs to see. The Indian consignee’s IEC Code must be included on all bills of lading for cargo bound for or transiting through ports in India.
6. Facilitates Electronic Fund Transfer (EFT):
Now, instead of having to physically go to a bank to pay for their export license, exporters can use a service called Electronic Funds Transfer (EFT) to pay online. The proposed method is meant to streamline the process of making electronic payments. Applications are submitted via electronic means only.
The Import Export Code previously did not require regular renewals as many other government permits do now.
A new Import Export Code will be required annually starting on the 12th of February, 2021, due to changes made to associated requirements in Chapters 1 and 2 of the Foreign Trade Policy.
As a result of this change, all holders of IEC or e-IEC codes are now required to update their information annually on the DGFT portal. It is nevertheless necessary to double-check online even if there have been no changes to the IEC.
Is the Import Export Code Enough for Shipping to Other Countries?
Having an Import Export Code isn’t enough to run an export business in India. The IE Code is required to initiate export operations. However, this is not enough on its own. To begin operations, you must also have the appropriate paperwork and registrations in order.
It all comes down to what you’re planning on exporting. Registration with the appropriate Export Promotion council is required prior to shipping any exported goods.
For instance, if you want to export spices from India, you’ll need to register with the Spices Board of India. Similarly, you must first register with the appropriate governing board to export tea or coffee.
Aside from the aforementioned APEDA, Rubber Board, MPEDA, TEXPROCIL, CAPEXIL, etc., there are a plethora of other Export Promotion Councils. Besides that, conducting business internationally or clearing customs at a port necessitates an officially registered AD code.
If you want to set up your business in India, we can help you with it. We offer complete IEC services to our clients, from incorporating a new company to setting up an existing foreign entity in India. We also assist companies who want to relocate their business outside India or transfer their existing business operations to another country.
Why Choose Lex N Tax Associates
IEC Registration is an important step toward a successful business. In today’s competitive world, every business owner wants to get their hands on the best IEC registration services in India.
Lex N Tax Associates provides IEC registration services to ensure your business gets registered with the government without hassle. With our expert team of lawyers, we can help you get your online business registered in India.
Our team of experts has been providing IEC registration services to various clients from across the globe for many years now. Our expertise in this field has helped us gain a good reputation among our clients, who are satisfied with our service delivery process.