A decision has been made by the Directorate General of Foreign Trade (DGFT) to allow the export of all alcohol-based hand sanitizers, including alcohol-based hand sanitizers in containers equipped with dispenser pumps. The Ministry of Commerce issued a notification on 15.10.2020 informing the public of the changes. Also, it has issued a notification for amending the export policy for hand sanitizers in the country.
Planning to expand business domestically or internationally is an enormous task. You will need the Import Export Code (IEC) to get you started. You need to follow several laws and get different registrations to go global with your goods and services. IEC Code is for people who want to engage with import-export business in Indian territory. If you wish to export a handloom from India to Australia, you won’t be allowed without an IEC. IEC is mandatory to avail growth opportunities through import or export. Moreover, it is not necessary to show any import or export activity to obtain IE Code.
Make sure, while incorporating your company, you specify in the Memorandum of Association (MOA) that you want to engage in the import-export business. Further, let’s understand all about IEC requirements and procedures.
What is the Import Export Code (IEC)?
IEC is a 10-digit identification number issued by the Director-General of Foreign Trade (DGFT), Department of Commerce, of the Government of India to trade globally. Additionally, IE Code is also known as Importer Exporter Code. Likewise, it is not possible to do export or import business without IEC.
Where is IE Code not mandatory?
For traders registered under GST
As per the latest notifications by the government, an IE Code is not mandatory for all traders under GST. Moreover, the PAN card of the trader will be the IE Code for import and export of goods and services.
Goods for Personal purpose
IEC is not for the goods in export or import for non-commercial purposes.
Government Departments:
Export/ Import done by the Government Departments and Ministries of India.
Charitable institutions
Charitable institutions do not require an Import Export Code (IEC).
When is the Import Export Code (IEC) required?
- Customs authorities will demand IEC when an importer needs to clear his shipments from the customs.
- Banks demand IEC whenever an importer sends money abroad.
- IEC is to be present at the customs port by an exporter to send his shipments.
- When an exporter receives payment in foreign currency into his bank account, the bank will ask for IEC.
What are the Benefits of the Import Export Code?
- Expand your business. IEC enables you to take your products to the international market and grow your business.
- Export Subsidies. Additionally, an exporter can get subsidies, a refund of taxes paid, and other benefits from custom and export authority for their exports/ imports under the policy of the Indian government.
- Lifetime validity. IE Code declares with lifetime validity. There is no requirement for renewal. Only after the winding up of the company, this code expires.
- No Return Filing. Once allotted, IEC does not require filing periodical returns to maintain its validity just like a PAN card.
- IE Code for Individuals. Even proprietors can get IEC in their name. No need to incorporate a business entity. Individuals can apply for IEC with the name of their company or their name directly.
- Online International Marketplaces: Get a place in online international marketplaces like Amazon, Alibaba, etc.
- Online procedure: The whole process to apply for IEC is online. You need not go anywhere physically. The Digital Signature Certificate is not required now for the IEC online registration procedure. It is relatively easy to obtain the IEC code now.
What are the documents required for IEC Registration?
Following documents are required to apply for IEC:
- Individual’s or Company’s PAN Card.
- Moreover, Individual ID proof, i.e. voter ID card or Aadhar Number or passport.
- Individual’s or company’s current bank account cancelled cheque.
- Address proof, i.e. Rent Agreement of the premise, Sale Deed, Lease Deed, Telephone Bill, or Electricity Bill.
Note:
- A No Objection Certificate (NOC), along with the address proof should be in the name of Firm if the evidence is not in the name of the applicant.
- Additionally, make sure that the mobile number and email address in the IEC application should be permanently active.
How long does it take to get IEC code online?
The IEC registration process is entirely online and accessible now. Additionally, IEC Online Registration can be in a day with ready documents. Moreover, after the submission and verification of all the documents, IE Code will be shared by DGFT in less than a week.
IEC Application Form Online: https://dgft.gov.in
What are the steps to apply for IEC Online?
- Visit the website of DGFT (Directorate General of Foreign Trade). Go to the menu bar and click on the option ‘services’ there. Select ‘IEC’ & then click on ‘Online application IEC‘.
- A new window will open. Fill in your PAN number and Choose ‘Search’.
- Please verify your phone number and Email Id with the token number sent on it.
- Now start filling the e-IEC application as per instructions there:
Applicants are required to follow these steps to fill the e-IEC form at the official website of DGFT:
Step 1
Add Entity Details
Step 2
Add Firm’s Details
Step 3
Add director/partner Details as per your case –
- For Proprietorship – Fill Proprietor’s details
- Additionally, for Partnership & LLP – Fill details of all Partners
- For Ltd Company – Details of all the directors
- Further, for Trust – Fill details of Trustee
- For Society – Fill details of Secretary
Step 4
Upload address proof and bank certificate or pre-printed cancelled cheque
Step 5
Pay Fees
Step 6
Preview and Print Application
Step 7
Submit application
Step 8
Generate and Print IEC
Conclusion
When the request has been submitted and the IEC has been generated, a copy of the IEC should be printed or downloaded. A Chartered Accountant can be hired to assist you in obtaining the Import Export Code if you do not want to apply yourself. If you need additional assistance, please let us know.
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