IEC Registration

OVERVIEW

IEC Registration

The businesses which aim to expand at a larger scale consider an option to expand its business beyond the domestic boundaries. If any business wants to expand its operations globally then it must have Import Export Code (IEC). IEC is issued by Director General of Foreign Trade (DGFT).

When business is done globally then there is a better opportunity to import the products at a cheaper price and export the products at a higher price than the domestic market. IEC is the basic requirement for any business who want to import and export the goods or services apart from other regulations like FEMA etc.

BENEFITS

Benefits of IEC Registration:

1. No monthly/quarterly/annual returns are required to be filed for reporting import or export of goods and services.
2. Business can claim the benefit of Export Promotion Schemes.
3. IEC issued is valid for lifetime and there is no need to renew the IEC.
4. IEC registration is a simpler process and it can be granted very quickly.
5. IEC helps in availing the goods or services from global market at a cheaper price than local market.
6. IEC helps in exporting the goods or services to global market at a higher price than local market.

REQUIRED DOCUMENTS

Documents required IEC Registration

Following documents are required for IEC Registration :

Business’s PAN Card.
Incorporation certificate.
Proprietor’s Voter id or Aadhar Card or Passport.
Cancelled Cheque.
Proof of registered office which includes rent agreement or electricity bill.
Photograph.
Basic details of proprietor or partners or directors.

process

Process of IEC Registration in India

The process of registration is as follows:

The first step is to create a login id and password at the DGFT’s website.
The next step is to fill in the application inthe form Aayaat Niryaat Form ANF-2A.
All the above documents must be prepared in order to proceed further.
After the entering the necessary information, the application must be filed using Digital Signature.
Requisite Fees must be paid.
Once all the information and documents are verified then DGFT would issue an IEC in a soft copy.

Time Required

The time required from the submission of the documents is10-15 days.

FREQUENTLY ASKED QUESTIONS

Explore IEC Registration

1. When IEC Registration is required?

The IEC Registration is required in following cases: • For clearing the goods at custom station, IEC is required by custom officers.
• For sending the money for the import, IEC is required by bankers.
• For exporting the goods, IEC is required at the custom port.
• For receiving the money for export, IEC is required by bankers.

2. What is government fees payable for the IEC Registration?

An Applicant needs to pay government fees of Rs. 500 for getting IEC Registration. The fees can either be paid Net Banking or through Debit/Credit Card.

3. What is the validity period of IEC Registration and how much digits do IEC contain?

The Registration is valid throughout the life of the organization and need not be renewed again. IEC is 10-digit code.

4. What are the cases in which IEC Registration is not required to import or export the goods and services?

For the following cases, IEC Registration is not needed: • Where goods and services are imported or exported for personal purposes.
• Where goods and services are imported or exported by Government Departments, Ministries and Specified Charitable Institutions.
• Where traders are registered under GST Act.

5. What is the value of export or import required to obtain IEC Registration? T

To obtain IEC Registration there is no need to show any proof of export or import of goods and services.

6. Whether IEC Registration is required in each and every state where organisation is operating?

The IEC registration is central registration and organisation need not apply for each and every state. One IEC per PAN is required.

7. Whether the IEC once issued can be cancelled or surrendered?

Yes, the IEC Registration can be cancelled or surrendered in case the organisation does not need to export or import the goods or services.

8. How to provide PAN’s Copy?

The PAN’s Copy is required to be given for both the sides. The second side helps in identifying the issuing authority’s address.

9. Whether NRI can apply for IEC Registration? If yes, then how?

Yes, NRI can apply for IEC Registration. NRI has to follow the normal process as mentioned above but additionally NRI has to obtain permission from RBI/FIPB.

10. Whether the IEC Registration is required for each good or service imported or exported?

No, the IEC Registration is granted for whole business and the organization does not need to apply IEC for each and every good or service imported or exported. One registration under IEC is enough to import or export any number of goods or services.