If a business is your goal, entrepreneurship is your dream, then you have come across the right landing page. Starting a company might be a natural process in this digital age but engaging it across the country is a hard job, needs many documents to get in your product or service in the form of export or import. The Indian government has formulated a set of laws to function this with a unique code-named “Import and export code.” This code is mandatory for every business to take forward the export and import goals.
Import and export code is a ten-digit unique identification issued by the Ministry of Commerce, Director General of Foreign Trade (Government of India) to each Indian company. In a simple term, the Import Export Code (IEC) code is required by importers and exporters to function the import or export business. Hence, the IEC is a mandatory document, and no company or entity can make any import or export in their business process without the IEC number. Further, in this blog, you will get to know the documents required, eligibility and means to obtain this Import Export Code.
Eligibility for obtaining the IEC number
The complete functioning of import and export in India is governed by the Foreign Trade Regulation Rules (provisions of 1993). So, the IEC is also functioned by the same statute. In case the import or export is of technology or services, the IEC is required in only a few circumstances, during the import or export is in specified technologies or specified services or the services or technologies via which international trading is abandoned by the Government of India as they have consequences to national security like dealing in nuclear or heavy weapons, automatic firing guns, etc.
under the following circumstances, the IEC is not needed:
- Import or export of goods related to personal use, which is not connected with manufacture/trade/agriculture.
- Import or export by government departments and ministries, and some verified charitable organizations.
Steps To Follow In Online To Receive The IEC Code:
STEP 1: Go to the website of DGFT (Directorate General of Foreign Trade). On the very left side, under the option ‘Quick Links’ you can see ‘Online IEC Application’. You have to just click it.
STEP 2: Now ‘LOGIN FOR IEC ONLINE page appears on the screen. You should enter the Permanent Account Number (PAN).
Now you have to click ‘Next’ by providing the PAN. Then, E-mail ID and mobile number associated with PAN appears on the screen. After completing the ‘Captcha’ process, you should click on Token Generation. You will be receiving separate One Time Password (OTPs) in the registered mobile number and email. Now you must type the OTPs and re-enter the current “Captcha” and press on the “Submit” option.
Before starting the process, we remind all that after we login if the page is not active for 10- 15 minutes, you will be automatically logged out. To login again, the same steps must be followed.
STEP 3: The next step is to update the “Master Data”.All the required information is provided on that landing page in detail. It is to be noted that Digital Signature, as well as a Photo, are mandatory to send. Now you must add Address Proof and Cancelled Cheque/Bank Certificate.
A new green-colored option will pop out on the right end of the same page, by which you should fill all the necessary data of the entity such as the Name, Address, City, State, District, PIN Code. Always enter your name as mentioned on the PAN Card.
Then the concern type is filled automatically. Enter the activity to be preferred ( From the below-mentioned options you can select any one of option for the preferred activity). Bank information is filled automatically. To enter the Director’s details, the individual’s PAN, father name, Date of birth are to be entered necessarily. You must update the Branch details too. As soon as all the data are filled precisely, click on the ‘Update’ option.
STEP 4: Attach Scan Copies of Required Documents
To upload your documents, select the document category and type. Note- Cancelled Cheque and PAN card must in either PDF or GIF format. You must select the drop-down option to click “Document Category and Type.” Choose the files from your location and select upload. Now, on the left end of the screen you can view a notification stating the documents are uploaded successfully.
STEP 5: Payment.
You must click on the payment link which will redirect you to a screen named Payment Initiation, here the details are auto-filled like DGFT ID, and fee. You must press on pay, and other windows will open, and now you have to select from various options like Debit Cards, Credit Cards, and Net Banking. You should pay Indian rupees of 500.00 for the fee. After paying you will get a receipt and also you can click on the tab “Verify Payment” on the main page.
STEP 6: Preview
In this you get an option to preview the application form and make some necessary changes if required. And you have an option of “print” for your convenient.
STEP 7: Submit
You have to submit the IEC application & should be much careful while submitting it. To choose the correct “Jurisdictional DGFT” as per your location is mandatory for your benefits. As soon you submitted the file, you can get the certificate via a new window. Before that, it will be sent to the registered mail id. Now, by the revised method you can get it at once. So, getting IEC registration to be done is an amazingly effortless process and hardly it takes 30 minutes.
Some of the Benefits of the Import and Export Business are:
For Import Business
Several businesses in India tend to produce the goods and services for the European and American market. This is because of the size in the market and purchases power belonging to the population over there. But when a new product/service is introduced to these couple of markets, it will for sure take a year or more before the product/service is introduced in other smaller markets.
Becoming a Leader in the International Market
The key benefit of importing a product or service is the opportunity to stomp a heavy market value for the brand, as a market leader. This is due to the fact that manufacturing new and improved products is a never-ending process, several businesses worldwide utilize the chance to import new with unique products before their competitors do. As the first to import a new product you can have enough probability of becoming a global leader in the import and export industry.
Another large-scale benefit of importing is the reduction in the manufacturing costs of the service/product. Many businesses in current days find to be importing their products like parts of bikes, cars, computers, smartphones or any resources that are more affordable and cheaper than producing them geographically in the host country.
For Export Business
Increase in the sales profit: In the process of importing products, you can help the businesses in reducing cost, exporting products can also ensure to increase in sales and sales potential in a big margin. Businesses that focus more on exporting trend has the stat of expanding their vision and markets within their location, internationally or globally. Not just earning money by selling the product/service offerings on the local market, the businesses are focused on inventing many new opportunities to represent the work overseas (other countries) to make more profits.
- Achieve worldwide markets
- Can easily claim the refund of various taxes paid while exporting the goods.
- IEC code getting process is completely online.
- The documentation process is easy.
- No renewal required (Permanent registration).
- Nil compliance for IEC registration
- Nil fee for annual maintenance.