Why import export code is important?
Import Export Code is very important for a business in India which involves import and export of products. This is a unique 10 digit code which is issued by the Director-General of Foreign Trade (DGFT), Ministry of Commerce. Once it is issued, there is no need for filing and renewals. This code is important for importers to clear customs and shipments and mainly to transfer money into foreign accounts. Whereas for the exporters it is important for them to ship the products and also to receive the money from the foreign banks. It is mandatory in India to have IEC and without that, there is no import and export made. This code can be issued to a business within 15 – 20 working days. We act as import export code consultant for your business and help you to do the needful.
Who requires IE code?
IE code is required for all the business types like a Sole Proprietorship, Partnership, Private Limited and Charitable organization where there involve import and export of goods, irrespective of the size of the organization. For personal use, this code is not necessary to import or export goods.
Import Export Code advises you the below steps:
Steps in order to register for the Import/Export code.
Step 1: Online application is available in the format Aayaat Niryaat Form no. 2A which is filed with the Directorate General of Foreign Trade. Whereas in the offline mode it can be done at the Regional office of DGFT.
Step 2: Bank details, DSC and all the required documents have to be submitted in this step.
Step 3: In this step, the IE code has been allotted and the process(application) moves further.
Step 4: After the documents were verified, it will be approved by the authorities and the IE license will be granted to the entity in the manner of soft copy.
Documents required for IE code:
Only a few sets of documents were required for the registration of the IE code. For all these processes the PAN card is the must need either for the individual or company.
- Driving license/Aadhar/Voter ID(any government entity ID)
- Company’s Incorporation Certificate or Partnership deed
- Current bank account statement (personal/company)
- Address proof (Electricity bill or rent agreement)
- Current accounts canceled cheque leaf copy
Benefits of IE Code:
- No compliance’s required
- Handling business becomes very simple
- Getting IEC is not very tedious, it can be obtained for business very easily
- It helps to spread your business ventures globally
- Guides you to have an online registration with the e-commerce operators
- It helps your business to avail many government schemes like MEIS and SEIS(Merchandise Export from India Scheme & Service Export from India Scheme)
Exemption of IEC:
For personal reasons apart from trade, agriculture and manufacturing there is an exemption for the persons who undertake import and export of goods
- As single consignment individuals who import or export goods of value which do not exceeds Rs.25000 from Nepal and Myanmar through Indo-Myanmar border areas and China they have an exemption.
- Exemption from obtaining IEC shall not be applicable for those who export – SCOMET (Special Chemicals, Equipment, and Technologies)
- Ministries/Departments of Central and State governments
The validity of IEC:
It is a lifetime registration and there is no need to renew the code, this becomes a permanent one for your import and export business. The code lasts until you surrender your registration or when your business ceases. With this IEC, the business doesn’t have the necessity to file their monthly or annual filings like GST, PF, etc.
If you are also interested to make your business Import export code registered in Bangalore, please contact us here.