WHAT IS AN IMPORT EXPORT CODE AND WHO NEED IT?
Home Business WHAT IS AN IMPORT EXPORT CODE AND WHO NEED IT?

WHAT IS AN IMPORT EXPORT CODE AND WHO NEED IT?

8 min read
0
166

Importer Exporter Code

Import Export (IE) Code is the basic document that is required at the time of import of export of goods in India or from India respectively. Directorate General of Foreign Trade (DGFT) is the guiding and issuing authority for the IE Code which falls under the Ministry of Commerce and Industries. Application for the IEC Code is required to make to Directorate General of Foreign Trade with the required details and documents. DGFT issues IE code within 2-3 days after sufficiently submission the documents.

Validity of IE Code

IE Code is the perpetual registration which means for lifetime. Due to this benefit there is no need to renew and updating of IE Code with the department. It is valid till the business is last which is up to the date of revoked or surrendered. Further there is no kind of compliances or return fillings like other registration. It is required to obtain by every organisation irrespective of formation of entity.

IE Code Exemption

Import and Export code registration  is required for export and import of every king of business good. But following categories are exempted from obtaining an IE Code,

  • In case of personal use goods.
  • In case if it involves the Central Government or agencies specified by rules of Foreign Trade.

Applying for IE Code

IE Code registration can be done by following procedure:

  • Exporters/importers required to submit an online application in form ANF 2A.
  • Requirement of two documents,

Named as address proof and other is cheque and bank certificate.

For Address Proof,

  • In case the business premise is owned then need of Sale deed.
  • In case the business premise is rented then must have rent agreement.
  • Any latest utility bill.
  • GST Certificate

Above documents need to be in the name of the firm and in case of proprietorship then simple voter id and aadhar card is enough to support.

For Bank proof

If the pre-printed name of the entity or account holder is not mentioned on cheque then it will not be acceptable as per the rules of the IEC. Format of documents is required in JPEG, GIF and size should not exceed 5 MB.

 Import Export Code Issuance

After successful submission of online application with required fees and documents, IEC will get auto generated. Issuance intimation is sent through email or via SMS along with hyperlink to download the certificate and can also take the print out. In case, there is a change in profile after the issuance of certificate then profile updation needs to be done at least once in a year. In case of wrong or incomplete information is being provided then applicant will be liable to bear penal/criminal action and IEC would be either suspended or cancelled.

Documents Required for IE Code Application

 In case of proprietorship

  • Photograph of the Proprietor
  • PAN card
  • Passport /Voter’s I-Card/ Driving Licence/ Aadhar card
  • Sale deed or Rental/Lease Agreement
  • Bank Certificate

In case of Legal entity

  • Digital Photograph of the Designated Partner/Director.
  • PAN card.
  • Passport /Voter’s I-Card/ Driving Licence/ Aadhar card of the Managing Partner/Director.
  • Certificate of incorporation.
  • Sale deed or Rental/Lease Agreement.
  • Bank Certificate /Cancelled Cheque.

Need of Import Export Code

  • For the custom clearance IEC is required.
  • Bank requires for making transactions (taking and giving) money to foreign customers.
  • For Export subsidy, Exporter needs to have it.
  • For Food License and APEDA, IE Code is required.
  • Most importantly Import Export is the most preferable proof.

 Benefits of Import Export Code

  • IEC will help to take your organization and products to the worldwide market so that you can sell product worldwide.
  • Revenue and product scaling will increase by the help of IEC.
  • Organization can claim Tax Benefits as well on the exports.
  • Return’s filling is not required IEC as it is issued for life time.
  • Calmest procedure to get the Registration certificate.
  • No requirement of renewal.

Know More : Book Keeping And Accounting

Conclusion

Import Export Code is mandatory for every person or enterprise deals in Import or Export of business goods. Import Export Code is allotted by the DGFT under the Ministry of Commerce and Industries of Government of India. Import Export Code has lifetime validity. It is a mandatory license for every business organization as an importer or exporter.

Deprived of this code no business can be achieved in the import-export category or to take the assistances provided by the government on this sector. Moreover, the Reserve Bank of India has finished it compulsory for all the traders to reference their IE Code, while making any payment or transfer sending money overseas. Customs Department also pursues IE code before clearing the shipment from overseas.

 

Leave a Reply

Your email address will not be published. Required fields are marked *

Check Also

The Benefits of Using Modalert for treating Shift Work Sleep Disorder

Shift Work Sleep Disorder has become one of the most common excessive sleep disorders in t…