IEC is a 10 digit identification number that is issued by the DGFT (Director General of Foreign Trade). It is mandatory for companies and businesses to obtain this code to start a business that deals with import and export in the Indian Territory. It is not possible to deal with export and import business without this code.
IEC required in the following conditions
- When an importer has to clear his shipment from the customs then its needed by the customs authorities.
- When importer send money abroad through bank then it’s needed by the bank.
- When an importer has to send his shipment then it’s needed by the customs port.
- When an exporter receives money in foreign currency directly into his bank account then it’s required by the bank.
Documents required for IEC Registration
- Copy of PAN of Company’s or Individual’s or Firm’s.
- Copy of PAN and Aadhar card of Company’s Director or Individual’s or firm’s Director. Copy of Passport in case of Foreigner.
- Cancel cheque or Bank certificate of Company’s or Individual’s or Firm’s Current Bank account.
- Copy of Rent Agreement of the premise.
Benefits of IEC Registration
- Expansion of Business
IEC assists you in taking your services or product to the global market and grow your business.
- Availing Several Benefits
The Company could avail several benefits of their import/export from the DGFT, Export Promotion Council, Customs, etc, on the basis of IEC Registration.
- No Filling returns
IEC does not require the filling of any return. Once allotted, there is not any requirement to follow any sort of process for sustaining it validity. Even for export transactions, there is not any requirement for filling any return with DGFT.
- Easy Processing
It is fairly easy to obtain IEC Code from the DGFT within a day or one day after submitting the application. There is not any need to provide proof of any export or import for getting IEC Code.
- No need of renewal
IEC Code is effective for the lifetime of an entity and requires no renewal. After it is obtained, it could be used by any entity against all export and import transactions.
Case where IEC is not mandatory
IEC code is required for import of any goods by a business. However, the following categories of persons are exempted from obtaining an IEC Code:-
- Importer and export by central Government or agencies or undertaking for defence purpose or other specified list under Trade Order, 1993.
- Import or Export of goods for personal use.
Persons having import-export code can apply for and obtain RCMC registration. Registration-Cum-Membership Certificate (RCMC) is a certificate that validates an exporter dealing with products registered with an agency/organization that are authorized by the Indian Government. The certificate is issued for five years by the Export Promotional Councils or commodity board in India. An exporter desiring to obtain an RCMC has to declare his mainstream business in the application. This application would be submitted to the Export Promotion Council/ Commodity Board relating to that line of business.