Import Export License
You are right. If one is involved in import and export business in India then one cannot do so without an Import Export Code (IEC). For importers and exporters in India the following terms and conditions apply. the IEC is a 10-digit alphanumeric code which works as a special kind of identification number.
The IEC code is issued and regulated by the Directorate General of Foreign Trade (DGFT), an Organization of the Indian government that is responsible for the promotion of foreign trade in India. The IEC is mandatory for importers and exporters unless it is suspended or cancelled by the DGFT and it is valid for life time.
An IEC is critical as it enables the importers to effect their transactions as it is used in the customs and other related procedures. As for this, exporters need the IEC for them to be able to take part in the various export incentive schemes offered by DGFT, such as drawback of duties, export incentives, etc. A bank account for the business has to be created for conducting business with foreign entities and this is where the IEC comes in.
An IEC is obtained from the DGFT or its regional offices and an individual or a company has to make an application for the same. The procedure of application entails submitting the necessary documents that are the application form, certificate from the bank, and any other relevant document that may be deemed necessary. The DGFT gives the IEC to the applicant once it has processed and approved the application that has been submitted.
An IEC is obtained from the DGFT or its regional offices and an individual or a company has to make an application for the same. The procedure of application entails submitting the necessary documents that are the application form, certificate from the bank, and any other relevant document that may be deemed necessary. The DGFT gives the IEC to the applicant once it has processed and approved the application that has been submitted.
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Why it is Important to Get IEC Registration?
It helps you to expand your services or products and take it across the international market and develop your business.- Many facilities could be obtained by the Companies for their imports/exports from the DGFT, Export Promotion Council, Customs etc. on the basis of their IEC registration.
- IEC does not have the requirement of filing of any return. Once assigned there is no need for the adherence to any procedure for the further confirmation of its validity. Even for export transactions there is no need of filing of any return to the DGFT.
- IEC code can be easily got from the DGFT and the time taken for the processing of the application is within 10 to 15 days. Here, it is not mandatory to produce any documents relating to export or import to get the IEC code.
- IEC code is valid for the existence of an entity and it does not have to be renewed. Once obtained it could be used by an entity all through the export and importations.
