Benefits of Import Export Code Registration

In these times of ever-growing competition, every business desires to grow and expand its market reach. Although making your business international is not an easy job, before going international, a company has to complete IEC registration process and obtain the Import Export Code (IEC) license for commencing an import-export business in India. A ten-digit registration code is issued by the Director-General of Foreign Trade (DGFT). Importers merchant cannot import commodities without obtaining IEC registration, and in the same way, the exporter merchant will not be able to avail benefits from the export scheme offered by the Director-General of Foreign Trade without acquiring an IEC registration certificate.

Benefits of IEC Registration

• Expansion of Business

With the help of Import Export Code a business can increase its market reach in the international market. Import Export Code offers the opportunity to export its goods and services in other countries and make a name in the international market.

• Availing Several Benefits

A business which has obtained IEC registration can avail a number of benefits given by Director General of Foreign Trade, Customs and Export Promotion Council.

• No Need of Return Filing

Import Export Code is not included in return filing. After the Import Export Code is allocated, it is not necessary to follow any other procedures for the legitimacy of Import Export Code. In any case, of export transaction, the Director General of Foreign Trade does not order for filing any return.

• Hassle-Free Processing

Obtaining Import Export Code from the Director-General of Foreign Trade is really simple and the registration process can be completed within 15 days. No proof of export or import is necessary subsequent to getting IEC Registration.

• Free for Lifetime

After attaining Import Export Code the applicant can benefit from its validity till perpetuity since it is free for lifetime and there is no requirement of any renewal of the certificate.

• Government Authorizes Proof

IEC is a government-issued identity. At the time of clearance of shipment, an entity can show this government-issued identity number.

The Procedure for IEC Registration is As Follows:

Step 1: Visit on https://dgft.gov.in/CP and then click on the “Apply for IEC”.

Step 2:  Enter registration details such as:-

• First and Last Name
• Register User as “Importer/ Exporter”
• Pin-code, District, State and City
• E-mail address & Mobile number

Click on “Send OTP” after entering the details. Put the OTP received on e-mail id and mobile number. Applicant will receive a notification upon successful confirmation of OTP, which the applicant has to change ahead of first login. Now, click on “Apply IEC”; and then click on start fresh application and log - in to the “Customer Portal” using the identifications inserting in step 2.

Step 3: Start filing the particulars in the IEC registration application which are as follows:-

1. General Information

• Nature of the Establishment
• Company/Firm Name
• PAN Card of Establishment
• Insert Name as per PAN Card
• Date of Birth /Incorporation of the entity
• The category of exporter
• Mention whether the firm is located in SEZ or not.
• Select whether the firm is located in EHTP Scheme, EOU Scheme, BTP scheme or STP Scheme.
• Enter the LLPIN /CIN in case of company/ LLP
• Enter GST Number
• Enter the mobile number and E-mail
• Upload proof of establishment/registration/incorporation. This additional document is compulsory for HUF, Partnership, Registered Society, Trust, and Others.
• Enter the particulars of the firms’ address
• Upload supporting documents as “Address Proof”. An address proof can be any of the following documents: Sale Deed, lease deed, electricity bill, MoU, telephone landline bill, post-paid bill.

Select “Save and Next” after entering details successfully.

2. Details of Director/Karta/Proprietor/Partner of the Entity which is comprised of the following agenda:-

• Add name as per PAN Card
• Add PAN Card number of Karta/Proprietor/Partner/ Director
• Enter Date of birth as mentioned in the PAN Card
• Address of the Karta/Proprietor/Partner/ Director
• Mobile no of the Karta/Proprietor/Partner/ Director
• Select “Save and Next” and move to next step.

A. Enter Bank Information of the Establishment

Bank Information such as Bank, Branch name, account number, IFSC code, account holder name. Upload cancelled cheque or Bank certificate as prescribed.

Select “Save and Next.”

B. Select Other details I.E. Preferred area of Operations.

Click on the “Save and Next” after submitting the details successfully.

C. Select The Acceptance Of Undertaking/Declaration And Fill The Place As Well.

Click on “Save and Next” after entering details to proceed further.

Step 4: Concluding Submission:-

Click on “Sign” at the bottom of the page - after completing step 3.

• Select the manner of submission i.e. either through Digital signature certificate or Aadhaar OTP. Enter the ‘Aadhaar number/Virtual ID’ and click on send OTP if the manner of submission is Aadhaar OTP, and submit the form
• Confirm it and carry on to make the payment of INR 500 against application after the prescribed form is signed. For completion of payment you will be redirected to the Payment Gateway.
• After the payment is completed you will be redirected to the official Website of DGFT and the payment receipt will be displayed on the screen. The applicant can also download the payment receipt for future reference. In case of payment failure, wait for some time to reflect the payment on the ‘BharatKosh’ Payment Gateway.

NOTE: - The applicant will receive the IEC registration certificate on the registered e-mail address. You can also download the certificate by logging on the official Website of DGFT by clicking on “Print Certificate” under “Manage IEC.” After that, the Import Export Code must be communicated to CBIC.

Conclusion

Import Export Code registration is important for a business that is involved in the import or export of goods and services. Importers merchant cannot import goods without the IEC registration, and similarly, the exporter merchant cannot avail benefits from Director General of Foreign Trade for the export scheme. Importers merchant cannot import commodities without obtaining IEC registration, and in the same way, the exporter merchant will not be able to avail benefits from the export scheme offered by the Director-General of Foreign Trade without acquiring an IEC registration certificate.