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.
The time required from the submission of the documents is10-15 days.
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.
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.
The Registration is valid throughout the life of the organization and need not be renewed again. IEC is 10-digit code.
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.
To obtain IEC Registration there is no need to show any proof of export or import of goods and services.
The IEC registration is central registration and organisation need not apply for each and every state. One IEC per PAN is required.
Yes, the IEC Registration can be cancelled or surrendered in case the organisation does not need to export or import the goods or services.
The PAN’s Copy is required to be given for both the sides. The second side helps in identifying the issuing authority’s address.
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.
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.
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