Businesses strive to capture the domestic market and eventually expand overseas. However, it is critical to abide by the laws and regulations to ensure you and your organization strays away from trouble. The business of import and export involves proper licensing as a critical pre-requisite.
The apply for Import Export Code online is essential if you are an Indian business in the importing and exporting domain. It is the 1st step to setting up a shop. However, import merchant needs the IEC before they can start importing, and the same applies to exporters. They cannot avail any DGFT benefits either unless they receive the code.
IEC is effective in numerous situations, including –
– Importers can clear their shipment from customs using the IEC
– Banks request a valid IEC if importers transfer money abroad
– Customs port requires an IEC from the exporters before they receive the shipment
– Exporters require IEC to receive transactions in foreign currency directly at their bank
However, changes by the government state that traders registered under GST need not apply for an IEC. They can use the PAN card as a valid code instead. You also do not require any licenses to receive or ship personal items as long as it does not hold a commercial purpose like manufacturing or agriculture. The exception also extends to imports and exports carried out by government bodies or other recognised charitable organizations.
You can apply for Import Export Code online and save yourself the hassle for physically appearing at the DGFT office. With travelling taking a hit following the pandemic, the entire application is possible from the comfort of your couch.
Here are the steps to complete your IEC registration –
- Prepare the application form for submission at the respective DGFT regional office in the specified format.
- Keep the identity and address proof documents ready along with bank details and a certificate in accordance with ANF2A.
- Now, file it using a certificate and online payment.
- You will receive the IEC code soft copy from the ministry once the authorities review and verify your identity and application.
Now, the process of applying for IEC is straightforward and requires about 10 to 15 days. You also receive a ton of benefits along with it –
- You can expand your business territories from the local market to overseas.
- You can avail the import and export benefits schemes under DGFT, Customs, Export Promotion Council, etc. with an IEC.
- You do not need to file returns with the DGFT for import or export transactions.
- The validity lasts a lifetime, and hence, you need not bother with a renewal.
Apply for Import Export Code online, and you can kick start your business without worrying about running around government officials. The entire registration saves you from commercial and legal jargons and the chance for delays by bureaucracy. You can take your business to another level, irrespective of your experience in the field, and equipped with the right tools.
Also Read: Why IEC CODE Required Starting An Import-Export Business In India?