An Overview

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 in abroad the first and the foremost step is to export and import products and services. The government has prioritize trade facilitation in order to reduce transaction cost and time. Trading not only helps the business personnel individually but also provide benefits to the country. Import Export Code is issued by DGFT. The purpose of Import Export License Certificate is to regulate and monitor the 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.

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 import or export. 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 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 IEC code. Once all the required documents are submitted and all the particular corrections are made. Further, having an IEC is mandatory for very 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 IEC license on DGFT portal on a yearly basis.

Documents Required for Obtaining IEC License

First we must have the information regarding the documents needed to get the Import Export license online in India before proceeding to the process of registration. The nature of the firm obtaining an IEC are as follows- “Proprietorship, Partnership, LLP, Pvt & Public Limited Company, Trust, HUF and Society.”

The documents that would be required are as follows:

IEC Registration Process

• The very first step for obtaining an Import Export License online is the registration process. One can register online through the government portal of DGFT.

• The second step is to upload the required documents and information to our web portal.

• The third step is the preparation of the application in prescribed format for Import Export Code.

• The fourth step is the attachment of the applicant’s digital signature and file online application before DGFT.

• The fifth step is the verification step where the DGFT officials will verify and process the application within a week.

• After successful verification provides Import Export Code certificate over the email. This is the last and the final step. (IN LEGALTAX THE FEE CHARGED FOR IMPORT EXPORT REGISTRATION IS Rs. 1999/- ONLY.)

IEC Validity And Renewal

Unlike other government licenses, the Import Export Code earlier was not needed to renew on a regular basis. However, after the amendments in Import Export Code related provisions under Chapter 1 and 2 of Foreign Trade Policy on 12th February, 2021 Import Export Code now has to be renewed each and every year. This amendment made the update of IEC code details mandatory for all IEC or e-IEC holders on DGFT portal each year. Even if there are no updates in IEC, the same has to be confirmed online.

Why IEC Code License Is Mandatory For Export Service Provider?

Import Export Code license is a key business identification number which is mandatory for Export and Import in India. No business is licensed to make any Import or Export without an IEC Code Number granted by DGFT.

In case of if you’re doing import or export of services or technology transfer, the IEC Code shall be required only when the service provider or technology provider is seeking benefits under the Foreign Trade Policy or is dealing with specified services or technologies under Section 7 of Foreign Trade (Development & Regulation) Amendment Act, 2010.

• The Director General of Foreign Trade (DGFT), Ministry of Commerce and Industries, issue IEC registration. It is mandatory for the Indian companies to have IEC registration if companies want to expand their business via export and import. Without having IEC license no business can involve import 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 the 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 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 the 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 the new ideas in business, the emergence of e-commerce, business operating in 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 franchisee abroad, starting subsidiary or branch office abroad, or through import-export business. Doing business at the global level is not that easy as it sounds. Import Export Code (IEC) once gave 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 basic 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.

Import Export Code Exemption

There are some stakeholders that are exempted from Import Export Code these are as follows:

• Central and State Government ministries or departments.

• Import or export of certain items for personal use that are unrelated to trade, manufacturing or agriculture.

• Individuals importing or exporting product from or to Nepal, Myanmar via Indo-Myanmar border areas or China providing the CIF value of a single consignment does not exceed Rs. 25000. The relevant exemption ceiling for Nathula port is Rs. 1 lakh.

Requirement Of Digital Signature For Import Export Code

• Importers and Exporters can apply for Import Export code online. So the need of Digital Signature of business owner/director for import export code arises.

• To apply for the online IEC code application Digital Signature (DSC) are the most preferred way.

• The DGFT has a one of a kind Digital signature Certificate that if issued to organization who already have an IEC Code for export and import. Using this one of a kind DSC, applicants can save up to 50% on license fee.

Certificate Of Origin (CO)

• A Certificate of Origin (CO) is an important international business document. The Certificate of Origin verifies that the products in an export cargo were entirely obtained, produced, manufactured, or processed in a certain country.

• In other words, the Certification of Origin declares the product's "nationality" and also acts as a statement by the exporter to meet customs or trade regulations.

• Customs, banks, private parties, and importers all require CoOs for a numerous of reasons. Also, Almost every country in the globe requires CO for customs clearance operations, thus IEC Code License holders also need to apply for Certificate of Origin if he/she planning to export outside India.

• A Certificate of Origin is issued by both the Indian Chamber of Commerce as well as Trade Promotion Council of India. Moreover, Import Export Code License Holders can two types of Certificate of Origin.

Non-preferential Certificate of Origin specifies that the products being exported/imported do not get preferential tariff treatment and that the applicable charges must be imposed on the items being transported.

Preferential Certificates of Origin are issued to products that are subject to preferential tariff treatment in the payments of tariffs. Preferential COs help in verifying commodities that are subject to lower taxes or allowances when exported to countries that provide these benefits. These COs are frequently linked to Regional Trade Agreements.

Why To Choose Legal Tax For Import Export Registration?

• Legal tax 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 are very satisfactory.

• Legal tax provide the IEC registration certificate in very low fee just for Rs. 1999/- only which is very low price from other organization providing the IEC certificate.