Everyone wants to expand their business beyond the domestic market in this age of competition. Doing business internationally, on the other hand, isn't for everyone. Before going worldwide, you have to go through several procedures and rules and get several registrations and licenses.
IEC stands for Importer and Exporter Code, which a business entity receives to import or export goods into or out of India. The Foreign Trade (Development and Regulation) Act, 1992, applies to the registration of the code. The IEC Registration Certificate is a document issued by the International Electro technical Commission.
Importer Exporter Code (IEC) is a unique 10-digit alphanumeric code assigned to an entity based on its PAN.
IEC Code is required to import or export in India. Unless specifically exempted, no person or business may import or export without obtaining an IEC Code Number.
An IEC can be obtained by an individual or a firm that wants to conduct international commerce. Individuals can apply for IEC using the name of their firm or their name.
let us see the procedure
To begin, create an application form in the required format – Aayaat Niryaat Form ANF-2A – and submit it to the appropriate DGFT Regional office. The IEC application fee is Rs. 500/-.
Second, you must prepare the appropriate documentation for your identification and legal entity, as well as an address proof with your bank account information and an ANF2A certificate.
After you've finished your application, you'll need to submit it to DGFT through DSC (Digital Signature Certificate) and pay the IEC Registration charge.
Finally, the government will send you a soft copy of the IEC Code if your application has been granted.
Documents Required For Iec
Any corporate entity or individual can receive an Import – Export Code. The needed documentation for the Import Export Code Registration is listed below.
Business Expansion IEC can help you take your services or products to a global market and expand your business. As previously said, it is the primary requirement for products and specified services imported into and exported from India, allowing enterprises to take advantage of global commercial prospects. It broadens the company's global reach and hence provides opportunities for growth and expansion.
Importers and exporters alike profit significantly from the IEC code. Benefits in the form of subsidies or otherwise declared by the Customs, Export Promotion Council, or other agencies would be available to registered business organizations. Exporters can make exports without paying taxes after registering a LUT under GST. If the exports are made with taxes, the exporter is entitled to a tax refund.
The IEC does not need any returns to be filed. There is no necessity to follow any form of process to maintain its validity once assigned. It is not necessary to file any returns with the DGFT for export transactions.
It is simple to receive an IEC code from the DGFT within 10 to 15 days after applying.
IEC codes are valid for the life of an entity and do not need to be renewed. After obtaining it, an entity might apply it to all export and import transactions. IEC registration is a one-time registration that is valid for the rest of one's life. As a result, updating, submitting, and renewing the IEC registration will be a breeze. It is valid as long as the company remains or until the registration is terminated or relinquished.
Before beginning import or export activity, you must first get an Importer Exporter Code. Unless this registration is obtained, the items or specified services cannot be imported into or exported from India. The applicant who engages in exports must also register under GST, as the law specifies a specific registration category. The need for IEC regulation
