IEC Registration is a mandatory requirement for any company that wants to sell its products in India. This registration ensures compliance with Indian laws, allowing only approved and safe products to enter the market. If you're seeking IEC registration in Delhi, which is essential for businesses engaged in international trade, Lex N Tax Associates offers expert assistance at an affordable price to help you obtain your unique Importer Exporter Code (IEC).This code streamlines customs clearance and facilitates import and export activities. The process includes submitting the required documents and application to the Directorate General of Foreign Trade (DGFT).
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.
Getting an Import Export License online begins with the registration process. The DGFT government portal is online, where one can register.
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1. 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.
2. Online Registration:
Finding the IE Code is a simple, paperless, and quick process that may be done entirely online.
3. 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.
4. Lifetime Validity:
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.
5. 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.
6. 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.
7. Compliance:
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.
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.
The process is:
Step 1. Registration on Government Portal
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.
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. Legalize 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 (IEC) is a unique 10-digit code issued by the Directorate General of Foreign Trade (DGFT) in India. It is mandatory for any individual or business entity wishing to engage in import or export activities. The validity of an IEC is typically for a lifetime, meaning once issued, it remains valid unless surrendered or revoked. However, there are certain scenarios where an IEC may require renewal.
Renewal of an IEC becomes necessary in case of any changes in the details provided during the initial application process, such as a change in address, legal entity, or directorship. Additionally, the DGFT may introduce new policies or regulations that necessitate the renewal of existing IECs to ensure compliance with the latest guidelines.
The renewal process usually involves submitting an application to the DGFT through their online portal or designated offices along with any required documents and fees. It's essential for businesses to keep track of the validity of their IEC and initiate the renewal process well in advance to avoid any disruption in their import-export operations. Failure to renew the IEC within the specified timeframe may lead to penalties or suspension of import-export privileges. Therefore, maintaining a valid and up-to-date IEC is crucial for businesses engaged in international trade to ensure smooth and compliant operations.