Everyone wants to expand their business beyond the domestic market in this day and age of fierce competition. However, not everyone enjoys doing business internationally. You will need to comply with a number of regulations and procedures as well as obtain various registrations and licenses prior to going global.
If you want to import or export from India, one of these requirements is an IEC (Import Export Code) license. Importer-Exporter Code is another name for this code.
Anyone looking to start an import/export business in the country must have the IEC (Import Export Code) in place. The DGFT (Director General of Foreign Trade) issues it. IEC is a code with ten digits and a lifetime validity.
Most of the time, importers cannot import goods without the Import Export Code, and exporters cannot get benefits from the DGFT export scheme, etc. void of IEC.
When IEC is required?
- The customs authorities require it when an importer must clear his shipments through customs.
- When an importer uses banks to send money overseas, then IEC which can have ie code registration in Chennai is needed by bank.
- The customs port requires an exporter to send his or her shipments.
- The bank requires it when an exporter receives foreign currency directly into his bank account.
When IEC is not required?
The most recent government circular states that IEC is not required for all traders who are registered under the GST. For the purposes of import and export, the trader’s PAN will always be interpreted as a new IEC code.
If the goods exported or imported are for personal use only and are not used for any commercial purpose, no Import Export Code (IEC) is required.
Notified charitable institutions do not need to obtain an Import Export Code for export or import of goods carried out by Indian government departments and ministries.
Can Individuals obtain IEC?
It is possible for individuals to obtain ie code registration in Chennai as business owners. To apply for IEC registration, individuals may use either their personal name or the name of their business.
IE code for person registered under GST
The Trade Circular states that you can use your GSTIN number to import and export goods into India if you are registered for GST.
However, the department has agreed that PAN should be used as an IEC number rather than the GSTIN number in order to maintain uniformity. In addition, for new applicants, the application must be submitted to the DGFT department, which will only issue your IEC number as your PAN number.
In addition, in order for the PAN number to be accepted as the IEC code that has ie code registration in Chennai, the department, which is currently the holder of the IEC, is making the necessary adjustments to the system.
IE code for person not registered under GST
The PAN number shall function as an IEC code for individuals who are not required IEC. Using PAN itself ie code registration in Chennai can be done.
In addition, the applicant’s PAN will be authorized as IEC for all new applicants who are exempt from the GST registration requirement.
Importance of IEC
Exporting and importing their goods and services is a great way for businesses to get their products and services into the international market.
Since it helps the business grow and develop to some extent, the IE code that has ie code registration in Chennai is a necessary prerequisite for entering the global market. The acquisition of an Import Export Code comes with a number of advantages.
Unlocks the international market:
They enable the products to enter the global market because the IE Code that has ie code registration in Chennai is required for the import and export industry. The IE code facilitates the international Indian company’s entry and provides opportunities for growth and expansion.
Registration online:
The procedure for locating the IE Code which has obtained ie code registration in Chennai is completely online and straightforward, requiring only the submission of a brief document.
Reduced need for documents:
To get an ie code registration in Chennai, you don’t have to submit a lot of documents.
Validity for All Time:
Ie code registration in Chennai that lasts for the life of the business. As a result, updating, filing, and renewing the Import Export Code registration are all hassle-free. The IE registration remains in effect until either the company actually exists or it is not surrendered or revoked.
Reduces the transportation of illegal goods:
The Import-Export code’s most fundamental requirement is that genuine information be provided. Obtaining ie code registration in Chennai is impossible without providing accurate information. The transportation of illegal goods is impossible due to this criterion.
Possessing Several Advantages:
Importers and exporters benefit greatly from IE code. Subsidies from the Customs, Export Promotion Council, or other authorities can assist registered business entities.
Exporters can make exports without paying taxes by filing LUT under GST.
The exporter is entitled to a refund of the tax that was paid if the exports were made with tax money.
Compliances: In contrast to other tax registrations, the person transporting imports or exports does not have to meet any specific compliance requirements, such as filing returns or an annual return.
Procedure to apply IEC
For the grant of an IEC Number by ie code registration in Chennai, one can apply to DGFT online. It consists of the following straightforward steps:
- The Aayaat Niryaat Form 2A application must be submitted to DGFT. You can apply online at http://dgft.gov.in, the DGFT website.
- You will need to upload a scanned copy of all of the required documents for ie code registration in Chennai, including your PAN card, bank account information, and photographs, in order to submit an online application to DGFT.
- When uploading documents online, the following items must be included: a gif file for the photograph, the PAN card, and the passport.
- The bank certificate should be sent in the format of a PDF.
- For ie code registration in Chennai, Voter ID in either Gif or PDF format, cancelled cheque are necessary.
- You must pay the fee electronically through net banking from any designated bank account when you apply online.
- Check the following before submitting an application:
- All of the information is accurate and matches the documents.
- For ie code registration in Chennai, the required fee is paid, and the DGFT region is chosen appropriately.
- DGFT will assign you an e-IEC number once the submitted documents have been checked by government officials.
- With the soft copy you received in your email, you can begin conducting business. DGFT does not distribute a printed copy of IEC.
Things you should know before applying IEC
- For ie code registration in Chennai, the application processing fee must be paid online using a debit card, credit card, or Net Banking method.
- A Proprietorship, Partnership, Limited Liability Partnership (LLP), Private Limited Company or Limited Company, Hindu Undivided Family (HUF), Trust, Cooperative Society, etc. may submit the application on their behalf.
- Depending on the applicant’s category, each IEC will be issued separately.
- Before applying for ie code registration in Chennai, the entity must have a bank account, valid address, and PAN.
- After ie code registration in Chennai, IEC will be issued against the proprietor’s PAN for proprietorship businesses. For the remainder, it would be issued against the applicant entity’s PAN.
- To obtain ie code registration in Chennai at the DGFT portal, an online form in the ANF 2A format must be submitted.
- IEC should only be used for business and not for personal gain.
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