Why Import Export Code (IEC) Certificate
 
 
Brief Introduction
Today time is world time. Only dealing in one country is not sufficient for sustainable growth. Sustainable growth can be achieved through dealing with other countries therefore IEC (Import Export Code) registration must be obtained by all entities involved in the import or/and  export of goods and services. It is issued by the DGFT (Director General of Foreign Trade). IEC is a 10-digit code which has a lifetime validity. Predominantly importers merchant cannot import goods without the Import Export Code and similarly, the exporter merchant cannot avail benefits from DGFT for the export scheme, etc. without IEC.
Import export code (IEC) is also known as import export license
Once the required documents are submitted online and made payment, the code is generated within 3-5 working days.
IEC is required in the following situations
1. When an importer has to clear his shipments from the customs then it’s needed by the customs authorities.
2. When an importer sends money abroad through banks then it’s needed by the bank.
3. When an exporter has to send his shipments then its needed by the customs port.
4. When an exporter receives money in foreign currency directly into his bank account then its required by the bank..
Benefits of IEC Registration
1. Expansion of Business
IEC assists you in taking your services or product to the global market and grow your businesses.
2. Availing Several Benefits
The Companies could avail several benefits of their imports/ exports from the DGFT, Export Promotion Council, Customs, etc., on the basis of their IEC registration.
3. No Filling of returns
IEC does not require the filing of any returns. Once allotted, there isn’t any requirement to follow any sort of processes for sustaining its validity. Even for export transactions, there isn’t any requirement for filing any returns with DGFT.
4. Easy Processing
It is fairly easy to obtain IEC code from the DGFT within a period of 5 to 10 days after submitting the application. There isn’t any need to provide proof of any export or import for getting IEC code.
5. No need for renewal
IEC code is effective for the lifetime of an entity and requires no renewal. After it is obtained, it could be used by an entity against all export and import transactions
 
Applying for IE Code
The exporters/importers shall file an online application .
New Procedure for online IEC application/modification has been introduced vide Trade Notice No 23/2018-19 New Delhi, Dated the 8 th August,2018

1. Mandatory Documents to be uploaded for new IEC

(a)Bank Certificate / Pre-printed Cancelled Cheque-Required*
(b)Address Proof of the firm­Required*

1. Any of the Following Documents: Sale deed | Rent agreement | Lease Deed | Electricity bill | Telephone Land line bill | Mobile Postpaid bill | MOU | Partnership Deed

1. Other acceptable documents(for Proprietorship only): Aadhar Card | Passport | Voter Id

1. In case the address proof is not in the name of the applicant firm, a No Objection Certificate(NOC) by the firm premises owner in favour of the firm along with the address proof is to be submitted as a single PDF document

1. (ii)           Digital Signature Certificate         -Now Not Required

Copy of PAN Card-Now Not Required
Photograph-Now Not Required
 
Validity of IE Code
IE Code registration is permanent registration which is valid for a lifetime. Hence, there will be no hassles for updating, filing and renewal of IE Code registration. It is valid until the business exists or the registration is revoked or surrendered. Further, the importer or exporter does not require to file any filings or follow any other compliance requirement like annual filing.
 
As IE code registration is one-time and requires no additional compliance, it is recommended for all companies and LLPs to obtain IE code after incorporation.

For further clarification and professional assistance, feel free to contact SRTConsultancy & Co.at sandeeprawatca@gmail.com
 
(Mr. Sandeep Rawat has vast experience & knowledge in dealing with Taxation and Compliance. He can be reached at   sandeeprawatca@gmail.com)