Import Export Code Registration
What is Import Export Registration?
Import Export Code Registration is the mandatory business identification number which is necessary for companies to carry out imports and exports. It is given by the Directorate General of Foreign Trade and is one of the key features required to carry on business. In terms of exports of Software and Tech, the registered firms should be registered to take benefits under the Foreign Trade Policy. This unique identification code is required while carrying out every sort of import and export and in a way, it’s the key to carrying out business for many firms and organizations.
Benefits of Import Export Code registration.
Getting an import-export code helps a lot of business houses and gives them a lot of opportunities for growth and progress.
- Businesses have the potential to unlock their reach to the international markets. Using the import-export code they can carry out the exports and imports of their goods and services and won’t have to spend extra on third parties.
- No compliance for tax return filings under the import-export code registration. Once registered the party doesn’t have to file tax returns. There is no need for compliance after registration.
- As there is no compliance while getting this code, there is no need to pay any annual maintenance fees to be paid to maintain the unique code that is being provided.
- It is a very important legal license to cross and enter international borders legally and there is no illegal business over here.
- As mentioned, it helps in stopping the illegal transportation and lessened the illegal imports and exports of goods. The code helps the government officials to supervise what is being taken across the border.
- There is an easy and efficient way provided by the directorate of foreign trade to apply for the code online through various easy steps to register and process.
Process of Import Export Code Registration?
As a trader looking forward to entering the international trade circuits, these are the following steps to do it.
- Step 1: First, the trader needs to prepare one application form in the required format –Aayaat Niryaat Form no. 2A format. It is filed with the respective Regional office of DGFT.
- Step 2: Secondly, the trader prepares the necessary documents related to their identity, legal identity. The address proof, along with the bank details also needs to be present. The certificate in respect of ANF2A should also be included.
- Step 3: The traders need to file with DGFT along with DSC (Digital Signature Certificate) and pay the required fees for the IEC Registration after their application is complete. Then, they have to pay the fees for the IEC registration.
- Step 4: Finally, once their application is approved then they would receive the IEC Code in a soft copy from the government.
Frequently asked Questions?
One IEC may be used for both import and export. Many people have the misconception that different IEC codes are needed for Import and export. Only one registration for import and export is present. The same IEC number can be used while importing as well as exporting. Also, there are multiple benefits of having Importer –Exporter Code for businesses
It is thought that IEC is only for import and export of goods. But it is required for both goods as well as services. The import or export of services is an international transaction. So anybody who provides services beyond the border of India is required to place an online IEC application.
IEC registration is a one-time registration. Once applied, it has lifetime validity, there is no need to renew it. The IEC is to be stated at the time of importing or exporting or paying or receiving payments. People do not need to file any returns of IEC. The reason is, no post-registration compliance is involved.
Earlier, the IEC department used to issue a different number for IEC code. Of late, The Ministry has brought about corrections due to which the PAN of an applicant becomes the registration number of IEC. Hence the PAN and IEC numbers will be the same. The Ministry registers the applicant under IEC. Then, it immediately issues the approval letter, where they notify PAN as their IEC number.
IEC is mandatory only for business and commercial purposes. The IEC doesn’t need to import or export goods for individual use.
Not every firm has to apply for IEC. But IEC is associated with PAN. Hence, if a person has two or more proprietorship firms that time for all the firms, mainly one and IEC registration needs to be taken. This is because many companies do not have a separate identity and so the PAN of an individual is used as a PAN of their firm. If one has allotted more than one IEC for one PAN then one has to surrender with the Ministry for cancellation. A partnership firm or LLP or Company will need to quote their own PAN, as a separate PAN is allotted to them.