Overview of IEC Registration

The Directorate General of Foreign Trade (DGFT), Ministry of Commerce & Industries, issues IEC registration. It is necessary for Indian companies to have IEC registration if companies want to expand their business via Import and Export. Import Export Code is a ten digit code which is issued by DGFT, the purpose of Import Export License Certificate is to regulate and monitor the foreign trade activities in India.

For carrying out Import Export activities in India obtaining IEC registration is compulsory, without having IEC license no business can involve in import export activity. Plus, if any business wants to entertain the benefits provided by the government then getting IEC registration is must. Reserve Bank of India has made it compulsory for all the traders to provide their Import Export Code during any payment transfer.

In the present era of ever-growing competition, businesses, in order to survive their substitutes available in the domestic market, are stepping out of their local presence. With back to back innovations and the generation of new ideas in business, the emergence of e-commerce, business operating in local limits 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 renewal. When the organization has gotten IEC, at that point the organization can involve in import export necessities with no issues.

Benefits of IEC Registration

Till now it is clear that Import Export Code is a ten digit code which is essential for every business to obtain who wants to indulge in import export activities. In India DGFT issues IEC. IEC Registration is the first thing that businesses need to import or export any item from India to some other nation. IEC registration paves the way for many new opportunities for business personnel.

Here Are The Few Benefits Of IEC Registration:

• Expansion Of Business

  With the help of IEC business can expand its reach in the global market. IEC provide the opportunity to business to export its goods and products outside the nation’s territory and create a name for oneself in the international market.

• Availing Several Benefits

  On the basis of IEC registration businesses can enjoy several benefits given by Export Promotion Council, DGFT, and Customs.

• No Need Of Return Filing

  IEC does not include in the filing of return. Once IEC is allocated, there is not any necessity to follow any kind of procedures for supporting its legitimacy. In any event, of export transaction, DGFT does not order for filing any return.

• Hassle-Free Processing

  Acquiring IEC from DGFT is genuinely simple and same can be gotten within a time of 10-15 days in the wake of presenting the application. No evidence of export or import is required subsequent to getting IEC Registration.

• Free For Lifetime

  Once you have obtained IEC you can enjoy its validity till eternity since it is free for lifetime plus there is no need of any renewal.

• Government Authorizes Proof

  Import Export Code is a government identity which is issued by the DGFT. At the time of clearance of shipment one can show this identity number.

New Online Procedure of IEC Registration: Import Export Code in India from July 2020

One can apply for IEC on its website WWW.DGFT.GOV.IN as DGFT is an only authority to issue IEC. At present, DGFT with effect from 1^st July 2020 has introduced an updated procedure & a new way to apply IEC online in which DSC would be obligatory to upload. DSC requirement has been announced by DGFT to reinforce IEC issuance procedure and to stop fraud.

IEC or Import export code is issued by DGFT (Director General of Foreign Trade), Department of Commerce, Government of India, which is a ten digit identification number. It possesses lifetime validity. It is also known as “Importer and exporter code” which helps a person import and export goods officially. Importer cannot import goods having no valid IEC. Also, the exporter cannot avail the export scheme benefit accessible from DGFT deprived of having proper IEC Registration.

The procedures for IEC registration are as follows:

Step 1: Click on https://dgft.gov.in/CP . After that, click on the “Apply for IEC” button.

Step 2: You need to enter the Registration Details which are stated below:-

• Register User as “Importer/ Exporter”
• First and Last Name
• Email id & Mobile number of the applicant
• Pincode, District, State and City

Click on the “Send OTP” button after inserting the details. Put the OTP received on mobile no. and mail id. You shall receive a notification comprising the temporary password on your mail id upon Successful validation of the OTP, which you need to change upon your first login. Now, click on “Apply IEC” button &apm; click on start fresh application option once the user registers and log - in to the “Customer Portal” using the identifications entered in step 2.

Step 3: Now, you start filing the details in the IEC registration form which are as follows:-

1. General Information

• Nature of the Concern
• Firm/Company Name
• PAN of the Establishment
• Insert Name as per PAN Card
• Incorporation of the entity/Date of Birth
• The category of exporter i.e. whether it is a Manufacturer exporter or Merchant exporter or Service provider or Merchant cum Manufacturer exporter or any other category.
• Select the option, whether the firm is located in the Special Economic Zone (SEZ) or not.
• Select the option, whether the firm is located in Electronic Hardware Technology Park (EHTP) Scheme, Export Oriented Unit (EOU) Scheme, Bio-Technology Park (BTP) scheme or Software Technology Park (STP) Scheme)?
• Enter the CIN/ LLPIN in case of LLP/company
• Enter the GST Number
• Enter the mobile no and mail for communication purpose
• Upload proof of incorporation/establishment/ registration for the given entity. This subsidiary document is mandatory for Registered Society, HUF, Partnership, Trust, Others.
• Enter the details of the firm address
• You need to upload supporting documents as “Proof of Address”. This can be any of the following document:

  i. Rent agreement, Sale Deed, lease deed, mobile, electricity bill, MoU, telephone landline bill, post-paid bill.

  ii. Other suitable documents (for proprietorship only): passport, Aadhar card, voter id.

  iii. A NOC (no-objection certificate) by the firm premises owner in favour of the firm along with the address proof may be uploaded if the address proof is not in the name of the applicant firm.

Select “Save and Next” option after filling the above details successfully.

2. Now, you need to add details of Proprietor/ Director/ Karta/ Partner/ Managing Trustee of the entity/establishment which includes the following agendas:-

• Insert name as per PAN record
• Insert PAN no of the person i.e. Proprietor/ Director/ Karta/ Partner/ Managing Trustee
• Insert Date of birth as per PAN Card
• Address of the Proprietor/ Director/ Karta/ Partner/ Managing Trustee
• Mobile no of the Proprietor/ Director/ Karta/ Partner/ Managing Trustee

Select “Save and Next” button after filling the above details successfully.

A. Enter bank Information of the Entity

Bank Information’s like Account holder Name, Bank and Branch name account number, IFSC code. You need to also upload cancelled cheque of the bank account or Bank certificate as per the prescribed Performa.

Select “Save and Next” button after filling the above details successfully.

B. Now, you need to select other Details i.e. preferred sectors of operations.

Click on the “Save and Next” button after filling the above details successfully.

C. Select the acceptance of undertaking/declaration and fill the Place as well.

After that, click on “Save and Next” button to proceed further

Step 4: Concluding Submission:-

Click on “Sign” button at the lowermost part of the page - after step 3.

• Now, you need to select the mode of submission i.e. either through Aadhaar OTP or Digital signature certificate. Enter the ‘Virtual ID/ Aadhaar number’ and click on get OTP in case of Aadhaar OTP, and submit the form
• Confirm it and proceed to make the payment against application after the signing of prescribed form is done. For Payment (The Application of IEC Fee is Rs 500) you shall be redirected to ‘Bharatkosh’ Payment Gateway.
• Page will be redirected to the DGFT Website after Successful Payment and the receipt shall be displayed to you. You can also download the receipt for your future reference. However, please wait for an hour to reflect the payment from the ‘BharatKosh’ Payment Gateway in case of payment failure.

Explanation for the Users: - The user will receive the IEC Certificate in the email (used at the time of applying for IEC). However, if required, after login the DGFT Website and using “Print Certificate” feature in “Manage IEC” - the User can also download the IEC Certificate. After that, the IEC shall be communicated to CBIC. Moreover, the transmission status can be seen by directing to navigate “My IEC” and checking the ‘IEC Status bar’ with “CBIC Transmission Status”.

Reminder: The applicant must update the PAN of the Signatory under “My Dashboard” tab as well as select “View register digital signature Token” In order SIGN the IEC form.