All You Should Know about Import-Export Registration

IMPORT EXPORT CODE REGISTRATION

Everyone wants to expand their firm beyond the domestic market in these times of fierce competition. Doing business internationally, on the other hand, isn't for everyone. Before going worldwide, you must adhere to several procedures and rules, as well as obtain several registrations and licenses. When importing or exporting from India, an IEC also called Import Export Code license is one of the requirements. Importer-Exporter Code is another name for it.

Anyone who wants to start an import/export firm in the country will need an IEC (Import Export Code). The DGFT is the one who issues it (Director General of Foreign Trade). IEC is a tendigit code that is valid for a lifetime. Generally, importers merchants cannot import products without an Import Export Code, and exporters merchants cannot make use of DGFT incentives such as the export scheme, etc., without an IEC.

Documents required for IEC (Import Export Code) Registration

There are various documents required For IEC registration such as a copy of a person's PAN card or firm's PAN card or either PAN card of companies, Cheque copies which are canceled of the current bank account of the firm, company or individual, an envelope which is self-addressed for registered mail delivery of the IEC certificate and Copy of the premise or a copy of the rental agreement or a copy of the electric bill

Validity of IE Code

IE Code registration is a one-time registration that is good for the rest of your life. As a result of which, submission, updating, and even renewing IE Code registration will be a breeze. It continues to remain in action until the business ceases to exist or either till the time registration is withdrawn or taken back. Also, just like registrations for tax like GST or PF, the importer or either exporter is not needed to complete any filings or interfere with any other compliance requirements such as reporting annually.

All LLPs as well as even corporations should receive an IE code after incorporation because it is a one-time registration that requires no additional compliance.

Benefits of Import Export Code Registration

Registration of Import Export Code has various benefits:-

·     Expansion of Business -First benefit is that Registration for Import Export Code will help you in expanding your business. Reaching out to a larger market on a global scale, therefore it will help your business to grow by leaps and bounds.

·     No return filing- Registering for Import Export Code will mean that you need not file any returns. Once the code has been allotted to you, you will not be required to follow some kind of process to ensure that its validity is sustained. Even with regard to export transactions, you will not be required to file your returns with the Foreign Trades general director.

·     No requirement for renewal: There is no need to renew an Import Export Code because it is valid as long as the entity survives. Therefore if there is anyone who has this code then they do not need to worry about its expiring date.

·     Processing is simple: It's not difficult to obtain an Import Export Code from the Foreign Trades general director. The processing is done within very few days just in a period of ten to fifteen days once there is the submission of an application.

·     There are various other advantages which include Companies who register for the Import Export Code may be eligible for a variety of additional benefits from customs, the Promotion Council of export, and even the Foreign Trades Director General.

FAQ’S

1. Is there a different code for Import and Export?

Ans. Import and export do not require different codes, and the same IEC can be used for both. Many people believe that a distinct IEC code is necessary, although this is not the case. There is only one registration necessary, which is required for both import and export, and the same IEC code can be used for both import and export. Obtaining an IEC code has numerous advantages for enterprises.

2. Is it necessary for me to update my IEC profile every year?

Ans. The answer to this is Yes, The IEC profile must be updated at least once a year. The IEC profile will be deactivated if it is not updated. After a successful update, a deactivated IEC can be reactivated. Reactivation on the other hand is completely a different case. Reactivation is subject to the condition that no other action be taken in the event of a violation Trade Policy of the Foreign.

3. Is it necessary to have a Digital Signature Certificate to apply for IEC?

Ans. It is not necessary to have a Digital Signature Certificate to apply for an IEC. Aadhaar authentication can be used to sign the IEC application. DSC was implemented in IEC to improve the issuance and modification operations.

4. Is IEC a requirement?

Ans. Yes, there is definitely a requirement. An Importer-Exporter Code is a unique business identification number that must be used when importing or exporting goods to or from India. Unless specifically exempted, a person or entity cannot export or import without first obtaining an IEC. However, unless the service provider is receiving advantages under the IEC, IEC is not required for service exports as per the trade policy of foreign.

5. How long does it take to obtain an IEC code?

IEC will be generated automatically after the online application is filed with the required payments and papers. The DGFT will give an intimation to an applicant regarding the allotment of IEC.