Important Thing to Know About IEC Registration for Small Business
In today's time everyone wants to grow and expand their business globally. It's not as easy as you think. For this one has to go through several procedures and laws and obtain various registrations and licenses.
Import Export Code Registration is one such registration which is required for import or export from India. In this article, we have taken a detailed look at IEC registration for small businesses.
Who Issues the Import Export Code?
IEC is required for persons wishing to start their import/export business in the country. This code is issued by the Director General of Foreign Trade. It is a 10 digit code, which has a fixed validity for life. Mainly importing traders cannot import goods without IEC, and exporter traders cannot avail DGFT for export schemes etc. without IEC.
Import Export Code (IEC) is required in the following situations:
An importer has his shipment cleared of customs
An importer sends money abroad through banks
An exporter has to send his shipment
Receives money in foreign currency by an exporter in his bank account.
How to Get IEC Registration?
Following are the steps to obtain IEC registration:
Prepare Application Form
Firstly, you have to prepare an application form in the specified format- Ayat Export Form ANF 2A and file it in the concerned DGFT Regional Office.
Prepare Required Documents
Next you should produce the necessary documents in respect of your identity and legal entity and proof of address with your bank details and certificate in respect of Form ANF 2A.
File Application
Once the application is completed and filled, you should file it in DGFT through DSC and pay the fee to obtain registration.
Get Import Export Code
Finally, when your application is approved, you will receive the IEC in a soft copy from the government.
Documents Required for IEC Registration
While filling the application form, you are required to submit certain documents which include the following:
Copy of PAN card of individual or firm or company is required as a document.
Copy of Voter ID or Aadhar Card or Passport of individuals.
Canceled check copy of current bank account of individuals or company or firms.
Copy of rent agreement or electricity bill.
A self-addressed envelope is required in the document for delivery of Import Export Code Certificate by registered post.
Benefits of Import Export Code Registration
The following benefits can be enjoyed by Import Export Code registration:
Business Growth & Expansion
To take your products or services globally, IEC helps you to the fullest and thus increases the chances of your business expansion.
Access Many Benefits
Companies based on their IEC registration can avail many benefits of their import/export from Director General of Foreign Trade, Export Promotion Council, Customs etc.
Not Filing Return
No return is required to be filed to the IEC. Once allotted, you do not need to follow any kind of procedures to maintain its validity. In case of export transactions also, no return is required to be filed with DGFT.
Easy Processing
It involves a simple process of obtaining IEC code from DGFT within 10 to 15 days of submission of application. There is no need to provide any proof of any export or import to obtain this code.
Valid for Lifetime
The IEC is in effect for the lifetime of a unit so it does not need to be renewed. Once it is received, it can be used by an entity for all export and import transactions.
Instances where IEC is not mandatory
As per the latest notification of the government, IEC is not mandatory for the traders registered under GST. In all such cases, the trader's PAN will be treated as the new IEC for import and export purposes. This code need not be obtained if the goods exported or imported are for personal purposes and not for any commercial purpose. Also, exports or imports made by the Government of India Departments, Ministries, Notified Charitable Institutions, etc., are not required to obtain IEC.
A person who is engaged in import and export of goods for personal purposes and not related to trade, manufacturing and horticulture is exempted from this registration. In addition, those who wish to export or import products from Nepal and Myanmar through the China-India-Myanmar fringe zone, which does not exceed Rs 25k, do not require registration.
Conclusion
It is clear that IEC registration can open up growth opportunities for an individual. So if you want to expand your business internationally by dealing with the import and export business, consider applying for an IEC today.
