Import Export Registration
Import-export code is a 10-digit unique code assigned to an individual/company and is required for every import/export operation. For expanding the business abroad the first and foremost step is to export and import products and services. The government has prioritized trade facilitation in order to reduce transaction costs and time.
Trading not only helps the business personnel individually but also provides benefits to the country. Import Export Code is issued by DGFT. The purpose of the Import Export License Certificate is to regulate and monitor foreign trade activities in India. IEC is also known as the passport of import and export business. No import or export shall be made by any person without obtaining an IEC.
The Director General of Foreign Trade (DGFT), Ministry of Commerce and Industries, issued IEC registration. It is mandatory for Indian companies to have IEC registration if companies want to expand their business via export and import. Without having an IEC license no business can involve import or export activity.
If any business wants to entertain the benefits provided by the government then getting IEC registration is compulsory. Reserve Bank of India has made it compulsory for all traders to provide their Import Export during any payment transfer.
Various provisions of the Foreign Trade Policy and measures taken by the government in the direction of trade facilitation have been consolidated for the purposes of Import and Export trade. The most important aspect of a company’s success is growth. Expansion of business globally could be the very first step towards this. Import Export Code Renewal every year is mandatory now for IEC License holders.
In the present era of ever-growing competition in business in order to survive in the market there are various substitutes available in the domestic market, which are stepping out of their local presence. With back-to-back innovation and the generation of new ideas in business, the emergence of e-commerce, business operating within local limit finds it important to operate globally by stepping abroad.
There are several methods to go beyond the domestic level, such as amalgamation for foreign brands, opening franchisees abroad, starting a subsidiary or branch office abroad, or through import-export business. Doing business at the global level is not as easy as it sounds. Import Export Code (IEC) once given can be utilized by the entity all through its existence and it doesn’t necessarily need any kind of renewal. When the organization has gotten IEC, at that point the organization can involve in import-export necessities with no issues.
With the rapid upsurge in globalization, nowadays, the opportunity of having a cross-border business is also increased. Moreover, an IEC Registration also assists an individual in unlocking the growth opportunities of the international business. Further, every individual who wants to expand his business on a global platform by dealing with the Import and Export business is mandatorily required to obtain IEC Registration.
Hence, having an IEC (Import and Export Code) is one of the basics at the global level. Moreover, an IEC has various advantages annexed to it. One such benefit of an IEC Code is that it not only assists in unlocking the international market but also helps in increasing the business’s growth level.
Starting and running a successful import-export business is full of challenges, right from deciding the name of the company to finding the right clients and distributing goods. There’s a lot of hassle waiting for you. If you miss out on perfection in any of the parts of the export and import procedure, you may face a big loss and legal headache.
You need to perfectly understand the import-export procedure, regulatory framework, documents, intricacies of various stages, and stakeholders involved in the beginning phase of your import and export business. If you’re planning to begin your export and import business in India, then you need to understand the terms of the Foreign Trade Act of 1992. This act has a lot to explain with regard to the regulation of foreign trade from India.
In this article, you’ll learn all about import-export documentation and find out about some vital intricacies involved with it.
Import Export Code
- Import Export Code is a 10-digit code that an individual or a business needs for the goods and services to get imported or exported. This code is allotted by the Director General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India.
- The valid period for this code is a lifetime. It basically means that there is no need for the IEC code holder to apply for its renewal. Hence, the company having IEC is able to perform all requirements concerning import-export and related issues.
- A period of 12-15 working days is required for the generation of the IEC code. Once all the required documents are submitted and all the particular corrections are made. Further, having an IEC is mandatory for every commercial importer and exporter in India. Hence, the business not having IEC is not qualified to undertake the category of import and export.
- Unlike other government licenses, the Import Export Code does not need to be renewed on a regular basis. However, one needs to update the status of the IEC license on the DGFT portal on a yearly basis.
Import Export Documentation You Need to Know Before Getting Started
Undoubtedly more advancement in tech has brought ease to each section of business, but it has, somewhere down the line, brought more tricks to scammers also. Hence, the legalities need to be tight enough to protect the money of the common man. How would you acknowledge the authorities that you’re doing a 100% legitimate import and export business? You’ll certainly need strong documents. But what sort of documentation is needed in the export procedure, and how challenging import export procedure and documentation in India can be? Let’s understand it in detail.
Goods related documents
- Certificate of Inspection: Inspection Board of India and a few other such organizations approve this vital document to ensure the quality of the products being exported.
- Seller’s Bill: A Seller’s bill includes vital data about the products like the amount, blemishes on packing, number of packages, ship’s name, delivery terms, destination port, etc.
- Testament of Origin: This authentic certification depicts where the goods’ production has taken place. Besides that, buyers can avail of individual exemptions and taxes through this document.
- Packing List: This document shows how many packages are there, details of what’s inside the boxes, and their conditions.
Shipment related documents
- Mate’s Receipt: captain issues this document. It has data about the date of shipment, after, bill of merchandise, data about the vessel, etc.
- Transportation Bill: This document includes data like the recipient’s name, the exporter’s name and address, the name of the vessel, and so on.
- Marine Insurance Policy: It’s an agreement between the insurance company and exporter to avail of any loss caused by the exporter due to whatever mishap happened during the shipment process.
- Bill of Lading: the shipping organization issues the Bill of Lading as proof to acknowledge the delivery of the products.
- Cart Ticket: The exporter obtains a cart ticket (also known as cart chit or gate pass) which contains some vital info such as shipping charge number, number of items, nation port, etc.
- Airway Bill: This document consists of the information on the products pretty much similar to the shipping bill the airline company issues.
Payment related documents
- Bank Certificate of Payment: Whenever the importer pays the exporter, the bank issues this certificate as proof.
- Bill of Exchange: We can call this document a sort of credit instrument between the exporter and importer.
- Letter of Credit: It’s proof issued by the purchaser’s bank as a letter to respect the bills of the exporter’s bank.
Other vital documents
- Other than the 3 vital documents we mentioned above, here comes a few common export-import documentation that you need to submit:
Why choose Legal Tax for Import Export Registration?
- Legaltax is a great service-providing organization and all its experts work very efficiently.
- Legal tax does the import-export registration process in a very sophisticated manner without any hassle and complications.
- They provide very good services to their clients. The review from the clients is very satisfactory.
- The legal tax provides the IEC registration certificate at a very low fee of just Rs. 1999/- only which is a very low price to other organizations providing the IEC certificate.
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