What is Import Export Code in India?
Even after so many economic hassles, India’s goods exports in July posted a marginal growth of 2.25 per cent (year-on-year) to $26.33 billion as out-bound shipments from major sectors such as petroleum, gems and jewellery, engineering goods.
In order to promote the export activities in India, flexible policies have been introduced by the government due to which corruption has minimized and business operations have been simplified. As a result every businessman is required to be attentive toward the legal policies and the procedures while commencing the business of import and export as without obtaining registration under Import Export Code, they cannot survive for long.
What do you mean by registration under Import Export Code in India?
Import Export License is required to obtain if you are planning to commence the Import- export businesses. Obtaining such license becomes compulsory where the import/export is related to services or modern and updated technologies. Import and/or export of nuclear weapons, guns, managing atomic weapons, programmed firearms, etc are restricted by the Government of India as they pertains to the national security of the country.
What is the importance of Import Export Code?
Import Export Code is granted by the Directorate General of Foreign Trade (DGFT) to any person or company so that they can operate their businesses in an effective manner and is a unique 10 digit number.
Need to check when Import Export Code registration is required-
- In order to import or export the goods and / or services, Import Export License is required. The goods can be imported or exported as the license is enrolled with the dealer cord attached with the port. Import Export Code helps in reducing the illegal import or export of goods or services or importing / exporting goods with incomplete information.
- Clearing of goods is done by the Custom authorities after checking them.
- Many benefits can be availed from DGFT, Customs, and Export Promotion Council on import & export of goods and/or services.
- Import Export License is also required by the banks where an importer makes payment to abroad sellers through banks.
How to get registration under Import Export Code through Online mode?
An application is required to be filed with the Directorate General of Foreign Trade (DGFT) through online mode once you are confirmed that you are eligible to get registration under Import Export Code. License of Import Export Code shall be issued within 15 to 20 days by the Directorate General of Foreign Trade (DGFT) after the submission of the form. INR 2499 only shall be required as a Import-export code Fees.
Registration process under Import Export Code is provided below-
- Fill and submit to the Regional office of Directorate General of Foreign Trade (DGFT) an application form in Form no. 2A format Aayaat Niryaat.
- After submitting the application you are required to furnish documents like address proof, identity proof, bank statements with a certificate in respect of above form i.e. ANF2A.
- After performing the above procedure you are fees for the import export code.
- Government shall issue the Import Export Code in a soft copy after the approval of the application form.
What are the categories of registration under Import Export Code?
File an application to DGFT.
Send your documents to India Financial with the Digital Signature Certificate
Login to DGFT website, and download the copy of Import Export Code
Which Documents are needed for registration under Import Export Code?
- Permanent Account Number card Copy
- Copy of the Aadhar Card / passport Copy or voter identity card Copy
- Current bank account’s cancel cheque Copy
- Rent agreement’s or electricity bill’s Copy of the premise.
Above mentioned documents are required to obtain license under Import Export Code
What are the advantages of Import Export Code?
The DGFT in India issues the import-export code which is a 10digit number. It is an obligatory prerequisite that enables the import or export of any product from India/ outside India. The main advantage of the Import Export Code is that it enables you to make transaction in the global markets. International online commercial centers like amazon.com, Alibaba.com and many other provide platform for the import and export transaction.
Other advantages of the Import Export Code Registration in India are as follows:
Business is promoted to a higher level as it opens the door to make transactions in the international markets.
Other embedded advantages
Other advantages can be availed if you are registered under Import Export Code from the Directorate General of Foreign Trade (DGFT), Export Promotion Council, Customs, etc on the basis of their Import Export Code.
No filing of returns
No legal formalities are required to be followed such as return filing, submission of documents with Directorate General of Foreign Trade (DGFT) for sustaining its validity. This license issued for lifetime.
Hand to hand Processing
It usually takes around 10 to 15 days to get your Import Export Code from the Directorate General of Foreign Trade (DGFT) after filing the application for registration. Furthermore, no proof is required to submit to obtain Import Export Code.
No renewal is required
As the License remains valid for lifetime and hence you don’t need to renew it.
What are the characteristics do Import Export Code have?
Enrolling under the Import Export Code is required for all the businesses who import products. Import Export Code is required for all the exporters to avail the benefits of exports. There is no system of filing the returns under Import Export Code. License of Import Export is issued for lifetime and hence no renewal is required.
Brief explanation is given below regarding the characteristics
Growth of Business: Your business will get expand after obtaining license of Import Export Code as you will be eligible to import or export your products in the global markets.
Benefits provided by the Government: In case you export the products and are registered under Import Export Code, you can avail the benefits from the end of Directorate General of Foreign Trade (DGFT), Customs and Export Promotion Council as government encourages such activities of export.
Genuine Subsidies: Directorate General of Foreign Trade (DGFT) grants many benefits to the organization or firms and even subsidies the imports/exports based on Import Export Code registration.
Legitimacy issued for lifetime: License obtained under Import Export Code can be used by the business man for all the transaction without any interruption as it is issued for the lifetime of your import export business and hence no renewal is required in it.
No filing of any kind of returns: No documents or returns are filed under Import Export Code registration. Once, you get license under Import export code, no other legal compliances are required to be filled with Directorate General of Foreign Trade (DGFT).
What are the exemption available under Import Export Code Registration for Goods and Service Tax (GST)?
Not everyone who has GST registration is required to obtain registration under Import Export Code, it comes with the exemptions too which are mentioned below:
- Where the imported / exported goods and / or services are used for personal purposes and is not used for commercial or business purpose.
- Where the Export/Import activities are carried out by the Government of India Departments and Ministries or Notified Charitable institutions
What is the procedure to surrender Import Export Code Registration through online mode?
Intimation regarding the surrender of registration of Import Export Code for any reason is required to be provided to the issuing authority. The issuing authority shall cancel the registration after receiving the intimation. To inform the customs and to other regional authorities on the Import Export Code number which has become inoperative or cancelled by the authority, the authority will then transmit the intimation to Directorate General of Foreign Trade (DGFT).
Note: Businesses dealing with different sectors of activities can apply for registration under Import Export Code. FSSAI registration is mandatory for the businesses who are engaged in the import and export of food products. Registration under Micro, Small and Medium Enterprises (MSME) must be taken by the import export businesses in order to avail the benefits of both the acts.
Frequently Asked Questions about IEC Registration
It is generally a 10 digit Unique Code which the Directorate general of foreign trade of commerce and industries the ministry of the government of India issues.
It usually takes 1 week to get registration under the Import-Export Code from the date of filing the application form.
A registration certificate or license of Import Export Code remains valid throughout the life of business.
To obtain Import-Export Code registration, Digital signature certificate is not required.
Only soft copy of certificate of Import-Export Code shall be provided to you over the mail address.
No, there is no return to be filed under Import-Export Code.
Any businesses who are engaged in the activities of import or export can apply to obtain registration under Import-Export Code Registration.
As such no penalty is there for not taking registration under Import Export Code but you will not be able to avail the benefits of Import Export Code.
This number is generally a 10 digit unique number.
It is generally a compliance free license, as no such compliances are to be fulfilled after obtaining license of Import Export Code. This license remains valid for life-time once issued by the Directorate General of Foreign Trade (DGFT).