IMPORTER – EXPORTER CODE REGISTRATION AND DOCUMENTATION
In India, we have registration compliance that an importer or exporter company has to comply with. Such registration is known as Import Export Code Number. Importer Exporter Code (IEC) is mandatory for a person indulging in any export or import activities. IEC number is a basic 10-digit number that is issued by the DGFT and allows Indian companies to export & import goods to and from India. Importer Exporter Code (IEC) number comes with indefinite validity and easy registration procedure. Also, the process of modification in case of any change is quite simple. There are certain benefits of getting such registration namely-
CATEGORY OF PERSONS REQUIRING IEC NUMBER
- Any persons requiring to send shipments via customs.
- Any person getting foreign currency directly deposited into their bank account in the form of consideration received for exported goods.
- Any person requiring the approval of customs authority in order to approve their shipments.
- Any person required to send money abroad through financial institutions or banks in the form of payment made for imported goods.
BENEFITS OF IEC NUMBER
- INDEFINITE VALIDITY: One of the greatest features of the IEC code is that there is no specific period of validation i.e. it is valid for the whole existence of the organization. As a result, there does not exist the need to renew it.
- NO FILING OF RETURNS: Unlike other compliances, IEC registration is a straightforward procedure that does not necessitate the filing of any returns for companies. As a result, once the allotment of the IEC certificate is done, the company is not required to provide any return to the government while undertaking any activity of export or import of goods.
- EXPANSION OF BUSINESS ACTIVITY: With an IEC registration, One can easily expand their business activity by exploring the global markets and also helping in increasing the country’s GDP.
- EASE IN SUPERVISION/MONITORING OF FOREIGN TRADE ACTIVITIES: The IEC code helps the Indian Government to keep a regular check on the company and also provides the company to take advantage of the opportunities provided by Customs, the DGFT, and the Export Promotion Council.
- EASE IN REGISTRATION: The government has now simplified and streamlined the registration process for IECs by opening an online portal wherein the company can apply for IEC in a paperless and hassle-free manner.
- NO SEPARATE REGISTRATION FOR UNITS ESTABLISHED UNDER SAME PAN: Since, PAN card is mandatory for registration, any business already having an IEC number is not required to obtain any further registration for any other unit or entity registered under the same PAN as of the above company.
EXEMPTED CATEGORIES OF IMPORTER AND EXPORTER
Generally, no export or import shall be made by any person without obtaining the IEC number unless they come under the following category, namely –
- Person importing and exporting goods or technology specifically under the authority of Central Government.
- Any Ministry or department of Central and State Government.
- Any Person importing or exporting goods for personal consumption and the same is not subject to any commercial activity.
- Any person who is specifically importing or exporting goods, to and from Nepal and Myanmar through the Indo-Myanmar border areas and China through Gunji and Namgaya Shipkila port wherein the number of such goods or single consignment shall not exceed Rs. 25,000. In case through Nathula port the above limit is increased from Rs. 25,000 to Rs. 1,00,000.
PERMANENT IEC NUMBER OF NON – COMMERCIAL PSU
The Government of India has specifically allotted some permanent IEC numbers which shall be used by the non – commercial public sector units. The list of IEC number is as follows –
|SERIAL NO.||PERMANENT IEC NO.||CATEGORY OF IMPORTER/EXPORTER|
|1.||0100000011||Ministries and departments of Central Government and agencies that are wholly or partially owned by them.|
|2.||0100000029||Ministries and departments of State Government and agencies that are wholly or partially owned by them.|
|3.||0100000037||Counsellor officers and diplomatic personnel in India, along with officials and agencies of UNO.|
|4.||0100000045||Indian citizens going/returning from abroad and also claiming benefit under Baggage rules.|
|5.||0100000053||Hospitals, individuals or institutions importing/exporting goods specifically for personal consumption and not for any commercial activity.|
|6.||0100000061||Persons indulging in trade with Nepal.|
|7.||0100000070||Persons indulging in trade with Myanmar through Indo-Myanmar border areas.|
|8.||0100000088||Ford Foundation and its Branches|
|9.||0100000096||Importers of goods exclusively used for display in fairs and exhibitions|
|10.||0100000100||Directors and authorized representatives of National Blood Group|
|11.||0100000126||Importing of goods, by individuals/ institutions and charitable NGOs, which are exempted from any custom duty and is used for victims of natural calamity.|
|12.||0100000134||Import/export of goods from/to China through Gunji, Namgaya shipkala and Nathula ports, subject to the ceiling limit specified by the government.|
|13.||0100000169||Import/export of goods by the entities authorized by the Reserve Bank of India and is of non-commercial nature.|
DOCUMENTS REQUIRED FOR IEC CODE
There are certain documents that are required to be scanned or copy be sent to the DGFT office as per the online or offline registration process. These documents include –
- DETAILS OF THE ENTITY SEEKING IEC NUMBER –
- PAN card of the business unit that would be undertaking the import/export activity.
- Address proof of the applicant entity which could be the sale deed or the lease deed in case of purchased or leased property respectively.
- Registration Certificate Number of the entity obtained from the concerned authorities at the time of the establishment of the entity.
- A canceled Cheque bearing the entity’s preprinted name as a proof for bank account detail.
- DETAILS OF THE MANAGING INDIVIDUAL – The managing individual could be a proprietor, partner, director, secretary, managing trustee as the case may be
- PAN card of the individual
- DIN/DPIN in case of company or LLP
- DETAILS OF THE SIGNATORY –
- Identity proof of the individual i.e. Aadhaar card or driving license etc.
- PAN card of the signatory.
- Digital photo
PROCESS OF REGISTRATION OF IEC CODE
With the ongoing development in technology, the IEC registration can now be taken or the application can now be submitted to the Regional Office of DGFT online as well.
- ONLINE PROCESS –
- The applicant needs to open the website of DGFT and file the application in ANF 2A format for grant of e-EIC.
- Persons holding digital signature can sign and authorize the application online and can submit the required documents mentioned above by scanning them and then upload on the portal.
- In case, the applicant is not holding any digital signature, they can take the printout of the application, sign the same and then scan and upload on the portal.
- Once the e-EIC is approved by DGFT, the applicant is notified about the same on the e-mail id provided in the application form and the notification also contains the e-EIC number allotted to the applicant.
- OFFLINE PROCESS –
- The applicant is required to create an application in the same format as in the online process. After filling out the form, the same be posted to the Regional Office of DGFT within their jurisdiction.
- Along with the application the applicant has send all the supporting information/documentation as mentioned above.
- After successfully filling the form, the applicant must file the form with DGFT, to get it signed with a DSC and also pay the required registration fee through different modes available.
- Once the application has been accepted/approved, the applicant will finally obtain a soft copy of IEC code by post on the address mentioned in the application.
CERTAIN PROVISIONS AND CONDITIONS FOR REGISTRATION
- Any person whether an individual or an entity, cannot take multiple registrations for IEC number, under the same PAN. If so, the person is required to apply for the cancellation for all the IEC numbers allotted and shall apply for a new one.
- In order to apply online for registration, the applicant must be having a compatible browser which is Microsoft Edge, Google Chrome, Mozilla Firefox and Apple Safari.
- The applicant must be in receipt of full credentials or information of the directors or trustees or any documents required for registration.
- Proper care be taken in filling up of application form since any discrepancy in name of the business or any other detail and scanning of documents would lead to disruption in the acceptance of the application.
- Also, in case of authorization of signature using digital signature, proper care be taken regarding the correctness as to the authorized signatory.
- There are certain payment gateways provided in order to pay the requisite fees. Once the applicant fills up the application form, he is redirected to a payment gateway wherein certain options like Internet Banking, Debit/Credit Card and UPI are available.
- In case the application gets rejected, the same is notified to the applicant on the registered e mail id and the same be rectified by logging into the portal using the assigned credentials. The applicant must remove the deficiency noticed by the authority and submit the rectified application on the same portal.
- The applicants also get the option to convert their old IEC number in a new one using the same portal.
IMPORTANCE OF UPDATED IEC DETAILS
- The Importer Exporter Code number is a very important document while undertaking international trade.
- In the course of export or import activity, IEC number would be required by the shipping company to engage in foreign purchases/sales transactions. So, any discrepancy/ inconsistency information provided by the applicant in the application form like the registered addresses, PANs, identities, and partner information, may cause serious consequences.
- Similarly, in case of online shopping websites, they include this information as part of their internal compliance with the country’s govt.
- Also, banks that serve as an intermediary between exporter and importer from various countries ask for the IEC code of the business entity in order to receive or pay the foreign currency in the course of international trade. Thus, they can deny transactions if incorrect or mismatched details are found while approving the transaction.
- An IEC number will be required by port or customs authorities for documentation and clearance purpose. In case the IEC number is not correctly modified/updated with the authorities, the shipment may get trapped/stuck or gets delayed at the time of arrival or departure.
- The FSSAI has also made it compulsory for a food import or export company to submit the Importer Exporter Code to operate to the concerned authorities of FSSAI. As a result, any inconsistencies in the data provided on the DGFT, could lead to invalidation or cancellation of the food license.
PROCEDURE TO LINK PAN TO OLD IEC NUMBER
Earlier before the implementation of the GST Act, the exporter/importer of goods was not required to provide their PAN for getting IEC number but after the implementation of the GST Act, the PAN is compulsorily be linked to the IEC Certificate. As a result, the exporters that received a numeric IEC under the previous system will have to apply for modifications.
There are 2 options available with the applicant. The first, is to apply for cancelation of the old IEC number and then apply for a new one either through the online or offline process. Secondly, the following process be undertaken –
- Open the DGFT website in the compatible browser and then click on the ‘Connect IEC’ tab in order to link the IEC number with PAN.
- Under the above tab, click on ‘Apply for Modification’ button from the drop-down menu. After this, mention the necessary details of the alteration as required on the portal and fill in any existing information, as required by Form ANF.
- Once the application has been successfully submitted, the person must contact the regional authority for approval of the application.
- In most of the scenarios, the applicant is communicated on e-mail regarding the confirmation of linking of PAN, but in case no intimation is received within 10-15 days, the applicant is required to contact the regional office in which the application was made.
The IEC code registration must be obtained by all business entities that deal with import and export. It was generally noted that many corporate experts recommend the use of documents. The Import Export Code has tremendous advantages for a company or owner with its global platform reach, working properly and continuously growing rates of business. Those who deal with this business or want to work with the industry should be advised to issue the Import Export Code in order to obtain many advantages.
Acquired IEC Code with the help of India Financial to expand your business internationally. We are legal experts in IEC code registration solutions. How do I get an online import number in India? If you need help with the import export code, please complete our inquiry form and call us. Or call 9555 555 480
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