Introduction
All about Import Export Code (IEC) : Import Export Code (also known as IE Code) is a 10 digit code that is issued by DGFT (Director General of Foreign Trade), Department of Commerce, Ministry of Commerce and Industries, Government of India. It is only applicable when goods are imported or exported for business purposes and not for personal purposes.
Situations where Import Export Code (IEC) is required
There are some situations where Import Export Code (IEC) is required:
- When an importer has to clear his shipments from the customs then it’s needed by the custom authorities.
- When an importer sends money abroad by banks then it’s required by the bank.
- When an exporter has to send his shipments then it’s needed by the custom port.
- When an exporter receives money directly into his bank account in foreign currency then it is required by the bank.
Benefits of Import Export Code (IEC)
- Online registration: Obtaining IE Code is completely online process through its common portal. The online IEC registration application makes hassle little with simplified documents list attached therewith to support the application.
- Global market reach: It is the primary requirement for import into export from India for the goods and specified services which enables the business to unlock the opportunities across the globe on International business market.
- PAN based registration: The Code is provided based on the Permanent Account Number of the business organizations. Therefore, the registration is not required on place of business rather, a single business entity may require only one registration.
- Lifetime validity: IEC registration is permanent registration which is valid for life time. It is valid until the registration is not surrendered or revoked and business continues.
- Reduce the risk of illegal transactions: The centralized registration help the official to supervise and better administer the transactions undertaken as a part of cross border business.
- No requirement for renewal: There is no requirement of filing or renewal of registration for each financial year or otherwise.
- No Compliance: Unlike other tax registration the person carrying import export does not require to fulfill any specific compliance requirement such as the annual filing or the return filings.
Exemption of Import Export Code
IE Code is not mandatory for all traders who are registered under GST. We list certain categories of importers and exporters exempt obtaining IE Code:
- Government of India Departments and Ministries
- Person importing or exporting goods for personal purposes not connected with trade, manufacture and agriculture.
In all the above such cases, the PAN of the trader shall be form as a new IE Code for the reason of import and export.
Documents required for Import Export Code Registration
For IE Code registration, the following documents are required:
- PAN Card of company/firm/individual
- Voter ID/Passport/Aadhaar card/ Driving license of the individual
- If office rented, then Rent or lease agreement
- Latest Electricity Bill of the premises
- If self owned premises, then Sales deed
- Digital photograph
- Cancel cheque
Conclusion:
Mainly, Importers and Exporters merchant cannot import and export goods without the Import export code (IEC). If you want to know more about Import Export Code, you can contact company suggestion.
