Import Export Business in India | IEC code | ispeedbiz

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Definition

The first requirement before you start an import-export business in India is to obtain an Import Export Code (IEC). An IEC is necessary for import or export of goods. In case the import/export is of services or technology, IEC is required in only limited circumstances, when import/export is in ‘specified services’ or ‘specified technologies’, i.e. services or technologies in which international trade is restricted by the Government of India as they pertain to national security, such as dealing in nuclear weapons, automatic guns, etc.
Import Export Code is popularly known as “IEC” or “IEC code”. It is a 10 digit number issued by Director General of Foreign Trade (DGFT). IEC is also known as an import-export license.

Importance

Every exporter or importer of goods shall have IEC code along with them to be eligible for Import Export in India. To be an exporter or importer of anything, every person must secure this license for exporting or importing anything outside India.

IEC is not required under the following circumstances:

  1. Import/export of goods for personal use, which is not connected with trade, manufacture or agriculture.
  2. Import/export by government ministries and departments, and certain notified charitable organizations.

Validity

IEC code is allotted only once and it is valid for lifetime. It’s like PAN card.

Compliance

There is no compliance prescribed for IEC and hence, no compliance cost.

Government Fees

The govt fees for the filing of IEC code is INR 500/-. Further, you will also need the digital signature to file the same. The cost of Digital Signature is INR 1,000/-

IEC application form

The IEC application form is ANF 2A. This form can be downloaded from the link below. However, the IEC process is completely online. Hence, it should be applied online.

Procedure for obtaining IEC An application must be made in the Aayaat Niryaat Form 2A (ANF 2A) format to the Regional Authority of the Directorate General of Foreign Trade (DGFT) in the region where the registered office of the company is situated.

An application must be made in the Aayaat Niryaat Form 2A (ANF 2A) format to the Regional Authority of the Directorate General of Foreign Trade (DGFT) in the region where the registered office of the company is situated.

Following documents are required for obtaining new IEC:

Sr. No. Documents For Proprietorship For Partnership For Private Ltd./ Ltd.
1 PAN Card Personal PAN Card Company’s PAN Card Company’s PAN Card
2 List of Partners/ Directors Residential address, Pin Code, Phone Number, Father’s Name Residential address, Pin Code, Phone Number on letterhead. List of Directors with, residential address, Pin Code, Phone Number on letterhead.
3 Memorandum and Articles of Association N.A. Partnership Deed-duly notarized, copy duly self-certified. MOA
4 Current Account Any National / International Bank
5 Bank Certificate As per Appendix attached
6 Photographs (Passport Size) 4 Nos. Anyone of Signing Authority – (4 Nos.) Anyone of Signing Authority – (4 Nos) with mobile number
7 Company’s Letterheads Two Nos. Two Nos. Two Nos.
8 Phone and E-mail Applicable
9 Type of Exporter Merchant/Manufacturer/Service/Other/Merchant cum Manufacturer (if manufacturer, SSI(MSME)/IEM/Ind.Licence)
10 Date of formation of company As per Pan Card As per Deed agreement As per Registrar Of Companies

The DGFT has provided online filing facility for obtaining IEC and other authorizations. Form ANF 2A requires basic details of the business and its proprietors, partners or directors (as applicable), bank account details and a bank certificate (where the business has an account) stating the period for which the business has an account with the bank.
One thing to be kept in mind is that the Permanent Account Number (PAN) is pre-requisite for grant of an IEC. And only one IEC can be issued against a single PAN.

The IEC issued is valid for all the branches or factories of the importer/exporter, as in case may the applications which are complete in all respects are normally disposed within two days. For practical purposes, you can provide for a week’s time (after factoring in the time required to make any changes in case your initial application is incomplete in some respect)

FEATURES OF IMPORT EXPORT CODE

  1. All importers who import goods are required to register Import Export Code and all exporters need this code to obtain the benefits of exports.
  2. IEC code holder does not require the filing of any returns.
  3. IEC Code is issued for lifetime and requires no renewal
  4. Even individuals who are proprietors can obtain the code in their name. It is not necessary to set up a business for the same.

Business growth: Taking your services or products to the international market will enlarge your businesses. IEC enable you to sell products outside India

Export Subsidies: On the basis of IEC, companies or firms can benefits and subsidies their exports/ imports from DGFT, Customs and export promotion council.

Lifetime validity: IE Code is issued for the lifetime of the entity and requires no renewal. So once an IE Code is obtained, it can be used by the entity for all its import or export transactions without any further hassles.

No Return Filing: IE Code does not require the filing of any return. Once, an IE Code is issued there are no further procedures required to maintain the validity of the IE Code. Even if import or export transactions occur, there are no filings required to DGFT.

Benefits of Import export code

Unlock international Markets
  1. The import-export code is popularly known as IEC code, which is a 10digit number issued by DGFT in India.
  2. IEC is a mandatory requirement to import or export from India.
  3. You can even register for International online marketplaces like amazon.com, Alibaba.com etc.
The Export benefits – Still unknown
  1. India has a policy, export the goods and not the taxes and therefore, aligns
    various export incentives.
  2. You can claim the refund of various taxes paid while exporting the goods.
  3. In Some case, government even waive the import duties, if you promise to export
    the goods within a time frame.
The Complete online process
  1. There is a completely online process for IEC registration.
  2. You don’t need to fear bureaucracy anymore. No more inspector.
  3. Cheap to register. We provide you IEC in just Rs.3499/- with a digital signature
    of two years validity.

Easy Documentation

Only 4 documents required that are
  1. Copy of PAN card
  2. Copy of ID Proof
  3. Passport size photo and
  4. Cancelled Cheque
Permanent Registration – No Renewal
  1. IEC once issued, it’s issued for the lifetime.
  2. There are no renewal fees for IEC registration.
  3. IEC registration is mandatory if you are dealing with import and export.
No Compliance for IEC registration:
  1. There is no compliance requirement for IEC
  2. There is no need to file any periodical returns etc.
  3. It is similar to PAN card.
No Annual maintenance fees:
  1. There are no annual maintenance fees for IEC, as there are no legal compliances prescribed.
  2. It lays you complete relaxation in your busy schedule.
  3. File for IEC, no headache
Simple Registration Process:
  1. Submit documents and make payment online. It can be done by three simple steps.
  2. IEC registration letter will be allotted within 4 to 5 working days

Individuals can have IE Code: Even individuals who are proprietors of a business can obtain IE Code with their name. It is not necessary to incorporate a business entity for obtaining IE Code.

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