Every individual in India who conducts import/export of products must mark their import/ export code. This code is mostly required while cross-selling the products from India to any other region or other nations to India. So, all the importers and exporters must have an IE code. The directorate general of foreign trade issues this Import/Export code. In other expressions, it is also known as Import/Export license. This license includes a ten-digit code known as Import/Export code. Usually, the ministry of commerce and industry and the regulatory body is liable for the origination of the policies for Import/Export. These bodies are also responsible for governing agendas and issuing a license to the importers and exporters. The reserve bank of India also makes it compulsory in case of transaction of money from India to India. That means if you want to export money from India or export money to India, you have to provide your ten-digit import/export code. Once you get your import/export code from the authorized department, it remains active throughout its existence. That means you don`t have to apply for the renewal of the code every year. The importers and exporters cannot import/export goods without the IE code.
Perks of Import/Export code
1- It helps you in availing of several advantages and subsidiaries from the regulatory body of IEC. The perks depend upon the type of registration.
2- The registration for IEC is quite easy, and you get the IEC certificate after the submission of applications. And you don`t need to provide any proof of work as well.
3- There is no need for renewal once you obtain your IE code. It remains active throughout its existence. Once you get your IE code, it will be active for a lifetime, and you can conduct import/export using it.
4- It acts as a major legal proof while the current bank accounts for your business. That means you don`t need to provide any other legal document.
5- Once you obtain your IEC certificate, you don`t have file revenue, whether you are doing any cross-selling of products or not.
The situation in which you require the IEC registration
The following circumstances in which you need to have your IEC registration.
1- If you are an importer and want your shipment to be cleared by customs, you need the IEC to be checked by the authorities.
2- In cases where you send money overseas through your bank, then the bank will ask you for your IEC certificate/IE code.
3-If you are an exporter and aspire to send you products, you need to have an IEC certification. It is checked at the customs port.
4- If you receive any money from overseas and that too in foreign currency, you need to provide your IEC.
Documents required for IEC registration/Import and export
If you want to obtain your IEC registration, you need to provide the following documents.
1- Complete KYC of the director. It includes a PAN card, Aadhar card, passport size picture, mobile number, contact details, and email ID.
2- A photocopy of the electricity bill of the place of business; it should not be more than two months older
3- A canceled cheque
4- Copy of GST certificate ( it is optional; you may/may not provide)
5- A representation of the establishment certificate of the business, it must show the establishment/registration of the applicant entity. It is a must for registered society, HUFs, and partnerships, and trusts.
6-Copy of PAN of the organization
7- PAN of Individual who is applying
8- Copy of PAN if it is Partnership firm/LLP
9- A scanned copy of the consent letter from the Reserve Bank of India, if the applicant is an NRI or a non-resident interest in the entity.
10- And if the applicant entity is incorporated as a company, it must provide the Class 2 DSC of the entity.
How can you obtain your IEC Code?
If you want to obtain your IEC code, you need to follow the below steps.
1- You have to create a login in the IEC portal.
2- Once you create your login, you have to provide your IEC application form by providing all information about your business, directors, proprietors, details, etc. all the details must be as per the business registration.
3- Then you need to upload the ancillary documents for getting your IEC permit. It can be a bank statement, canceled cheque, latest power bills, or Aadhar card.
4- Once you upload all these documents, you need to make the payment. You must note that all the payments are made via online mode.
5- You need to upload the class 2 DSC in case if you are a company.
6- After your upload your class 2 DSC, then your application will be verified by the authorized body.
7-After the verification, you will get your IEC certification in your registered mail ID.
Type of IEC that are accepted for IEC certification
1-If the applicant is a HUF/individual/individual-based class 2/DSC, the name must be similar to the name of the individual and organization in such cases.
2- And in the case of organization-based class 2 or class DSC, the name should be similar to the name of director/partner/managing director/entity.
Entities that are exempted from IEC
1- All individuals who indulge in Import and export goods for a particular reason rather than trade, horticulture, or manufacturing are exempted from getting their IEC.
2- The individuals who import/export goods from or to Nepal/Myanmar through the fringes zone do not need to have IEC.
All importers/exporters need to have their IEC. It provides the seller code details through the port through which the things are being imported. The authorized body confines all the products illegal transportation, and IEC helps eliminate illegal activities. This is because it is impossible to ship your products without providing your IEC code. Thus, if you are an importer/exporter of goods, you must get your IEC registration done.
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