All about IEC Modification in India
IEC stands for Import Export Code. This is a key business identification number, which is a unique number that is issued by DGFT of India or the Directorate General of Foreign Trade of India. It is mandatory for businesses that are engaged in the export or import activity to take IEC registration or certification. No importer or exporter shall engage in such activities without obtaining an IEC certification or registration, unless and until it is specifically exempted from taking such registration by the law in force during the time. In case of the exporting of service or importing of services, IEC shall not be necessary. But if such service provider is taking the benefit provided to them under the foreign trade policy, then it shall become mandatory for taking I EC registration.
After the introduction of GST in the country of India, IEC was issued linking the same with the PAN details of entity. A partnership firm, LLP, a proprietorship entity, private or public limited company, trust, society, or HUF can avail of the IEC certification or registration for engaging in the import and export activity. For applying for the IEC, the entity should be having a PAN in its name, despite the type of its registration being proprietorship, partnership entity, LLP, limited company, HUF, Trust or society, or such other form of organization. It should also be having a bank account number that is opened in the name of the entity and also a valid business address. This is because the address may be physically verified by the DGFT authority prior to the issuing of the IEC registration or certification.
Circumstances when a Business is in Requirement of IEC
The business entity is said to be in requirement of IEC Certification, during the following circumstances, which are specified below:
- It will be required by the importer during the shipment clearance of the goods which are imported by him.
- It is also required by the entrepreneur when he is remitting the amount or the money to the exporter who is located Outside India for the goods that were imported by him.
iii. In the case of an exporter, he shall need the IEC certification and need to produce the same with the customs for clearing of shipment which is to be exported.
- The exporter is required to produce the IEC number for receiving the amount of money for the goods that were exported by him to the foreign country in his bank account.
Pre-requisites for Applying for IEC
Following are the prerequisites for applying to the DGFT for the IEC. It is mandatory that the business entity is complying with these requirements:
- The applying entity or the applicant should be a proprietorship entity, LLP or Limited Liability Partnership, HUF or Hindu Undivided Family, Limited company, Trust or Society.
- They must be having PAN registered in the name of the entity and in the case of the proprietorship entity, the PAN details of the proprietor can be used.
- The entity should also be having a valid business address of its place of business or the premise of business. In the scenario of submitting the application.
The entrepreneur should submit all these documents during the time of application, which would then be digitally verified by the DGFT Authority. The entity should also be having valid bank account details. Prior to the application being submitted.
Circumstances for Applying for IEC Modification
At times the entrepreneurs and their business entity would require to make modifications to the IEC. Some of the circumstances during which the modifications have to be done are the following:
– There is a change in the address of the company’s registered office or business place due to which the same should be changed in the IEC certification also.
– The company has changed its name and requires to change the name in the IEC also.
– There is a requirement for the company to add a new branch to its existing business holdings.
– There is a change in the key management of the entity as there is an addition or deletion of partner director or such other key management personnel in the company.
– There is a significant change in the business activities of the company or the entity due to which the modification is also required in case of IEC certification.
– The company has made a change in the mobile number or email ID of the company which was registered during the availing of registration of the IEC certificate.
– The company wants to update or change the bank details of the company that was entered with DGFT or IEC during the time of registration or such at that time.
Documents Required for IEC Modification
For modifying the IEC, there are certain documents that should be provided or filed by the applicant as supporting documents. And this document would include the following:
– PAN Card copy of the proprietor or the company, as the case may be.
– Passport size photograph along with ANF-2A application form.
– The business owners or business partners or directors Aadhar card details should also be filed with the modification.
– They should provide be canceled cheques of savings account or current account as the case may be along with the modification application.
– The entity should also ensure that there is a class two or class three digital signature certificate of the partners or directors or owners or the proprietor, as the case may be shall also be made available.
The Government of India and DGFT have recently modified the procedure which can be used for providing applications or for applying for the IEC modification. This can now be done online, but only on the payment of prescribed fees. The payment can also be remitted by the applicant by using the option ‘Pay Online’, which is given under the licensing scheme menu. The payment option can be chosen by the applicant and can be paid using the verified and secured payment portal of the DGFT. Once the payment has been done an update with respect to the same shall be provided to the applicant duly.
Benefits arising from IEC Modification
IEC modification is important because it helps the business run seamlessly. It is important that for conducting any import or export activity in a country like India, all paper works are done. And here IEC certification and the updating of the same or keeping the same updated is important to ensure that all the import and export activities are done without any restrictions posed by the Government departments and officials.
As the IEC modification process can be conducted online, it is easy for making any updating or modification due to which keeping the same on track is not a difficult activity for the business entrepreneurs.
For receiving the payment for any export done or for remitting the payment for an import made by the entrepreneurs it is vital that they produce the IEC certificate. It is also important for the shipment clearance in case of import and export also. If the entity is not keeping the IEC certificate modified or updated, this will cause a hindrance in the completion of shipment clearance and the remittance or the receipt of the payment. Hence, the modification of IEC will help the entity conduct the business without any hindrances or restrictions and in a seamless manner.
Thus, it can now be concluded that IEC modification is an important process that would enable the entity to conduct its business with ease and continuity. The relevant changes which are made to the business should be notified with IEC like any other government department or authority which would ensure keeping up with the credibility and reputation of the business and keeping away any legal cost arising.