Conducting business internationally is not a cup of tea. To obtain numerous registrations and licenses before going worldwide, one must adhere to a number of rules and procedures. One such requirement to launch an import-export business is the IEC code. To receive the import-export code, one must follow certain procedures and meet certain requirements. There are other requirements that you must follow. The IEC code is visible from the DGFT offices. Let’s dive into detail!
What Is an IEC Modification?
Any alterations or additions to the specifics of a corporate entity’s individual Import Export Code are referred to as IEC modifications. After submitting an application for IEC change, every export merchant who wants to modify his Import Export Code Certificate must do so as quickly as feasible.
Characteristics of IEC Modification
The Import Export Code is in effect forever. Additionally, this suggests that the IEC certificate does not require renewal. However, after making the adjustments needed, we can continue to use the same IEC code if there is a change in the office address, partners, or anything else.
First, export and import are essential for a nation’s economy because they bring in valuable foreign currency. In order to encourage exporters, the government has suggested a number of incentive programs, one of which entitles exporters to a refund of about 5% of the invoice value.
All of the information in governmental organizations like the DGFT and customs is updated when you alter the specifics in the import-export code. The export and import process could have problems if the information in the IEC is unreliable.
The Necessity of IEC Modification
It is essential to update every data of a company. That is branch details and activity status like manufacture or merchant in the Import Export Code. If not done so, there will be consequences during the import-export process due to the mismatched details in DGFT and customs. Almost everything is able to make modifications to IEC. Such as adding branch details, address change, change in PAN card number, a director change, deletion or addition of a partner, and so on.
Documents Needed for IEC Modification
The paperwork requirements for changing IEC are the same as for applying for IEC for the first time:
- A picture of the applicant
- Entity Pan Card that has been self-attested by the applicant (if any)
- Address Proof of the Entity (Sale Deed, Rent Agreement, Latest Electricity Bill, Latest Mobile Bill, Latest Landline Bill), pre-printed Cancelled Cheque, or Bank Certificate of the Applicant
- To be paid fees: You must pay ₹200 to make a revision.
IEC Modification Online Procedure
The IEC modification Online procedure includes the following steps.
Procuring the Documents
This stage will clear all your doubts regarding the modification of the import-export code. All you have to do is collect the necessary pieces of information and required documents for the drafting of the application.
Filing of Application
Your application will be drafted within a working day, based on the documents and information provided, and will be sent to you for confirmation. After the approval, they will go further with the final submission of the application.
IEC Modification Charges
As a result, no amount of fee is applicable if the application is in process within 90 days. However, the IEC modification charge required is Rs. 200.
Modified IEC Certificate
After the final application on the DGFT portal is complete, you will receive a soft copy of the changes in the import-export code through email within the next 2 to 5 working days.
Benefits of IEC
Businesspersons have great options through export and import business. This is to unlock the international market for their service or products involve in. Moreover, the import-export code is the main requirement to enter the international market, which supports the development and growth of a business to a certain standard. There are many advantages or benefits of the IEC, which are as follows.
Global Market Reach
As already known, the IEC is a primary requirement for importing and exporting goods. Subsequently, the specified services enable businesses to unlock opportunities across the globe in the international business market. It also increases the global reach of the business and hence, opens the door for the growth and expansion of a business.
Benefits of Schemes
The IEC code has great benefits for importers as well as exporters. The registered business entities can avail of benefits in the form of subsidies or otherwise declared by the customs, export promotion council, or other authorities. After filing LUT under GST, the exporters can export without payment of taxes. However, if the exports are made with the payment of taxes, the exporter can claim a refund of the amount paid as tax.
No Compliance and Annual Maintenance
Unlike the other tax registrations, the importer or exporter does not need to fulfill any specific compliance requirements such as annual filings or return filings. Additionally, the IEC code does not require any compliance after registration. As there is no compliance listed, there is no requisite annual maintenance fee to be paid after acquiring the code.
Initially, the IEC is easy to obtain from the DGFT within 10-15 days after the report of the application. Moreover, there is no need to provide any proof of export and import for getting an import-export code.
Obtaining the IEC is the license for exporting and importing goods and services for other business purposes. Similarly, it is a chief legal license that has cross-border transactions legal and easy.
Reduces the Risk of Illegal Transportation
The import-export code helps in eradicating illegal transportation or illicit imports and exports. The centralized registration helps the officials to supervise and better administer the transaction which is undertaken as a part of cross-border business.
Therefore, obtaining the IEC is a need before starting the import and export operation because the goods cannot be carried without the code. Additionally, the applicant who does import-export business must register under GST in accordance with the law. Your needs for the Modification of the Importer Exporter Code (IEC) and other procedures will be met by Vakilsearch. All of your questions regarding IEC Modification will be answered by their business consultants, who will also assist you with making decisions with ease.