Expanding your business globally by importing and exporting goods and services?


Stuck with the compliances, permissions, license from the government?
There are various compliances for doing the same under different laws but herein this article we will discuss on import and export code registration i.e., obtaining IE Code
What is import export code?
It is a 10-digitunique code required to be obtained from Directorate General of Foreign Trade (DGFT) under Ministry of Commerce and Industry, Government of India with a permanent validity for taking your business at a global level.
WHO IS REQUIRED TO APPLY FOR IE CODE REGSITRATION?
In case of import:
1.      When the importer has to clear his shipment from the customs, the custom authorities require IE code
2.      When the importer deals with the bank for the payment of money, Banks require IE code
In case of export:
1.      When an exporter sends the shipment. It is required by the custom port
2.      When an exporter receives money in foreign currency in his bank account, it is required by the Banks
WHO IS EXEMPTED FROM OBTAINING IE CODE?
Persons / Organizations dealing in Import & Export would require to apply for Import Export Code (IEC) registration. But there are some categories defined by DGFT, which are exempted from taking this code.
1.      When the import/ export is done for the personal use and not for the commercial purpose.
2.      When the import/ export is done by the government department and notified charitable organizations.
Note: In case of import or export of services or technology IEC registration is necessary only when the service or technology provider is taking some benefit granted under the foreign trade policy to them or is dealing with specified services or specified technologies.
WHO IS REQUIRED IE CODE?
1.      Individuals
2.      Proprietorship firm
3.      Partnership firm
4.      LLP
5.      Company
6.      HUF
7.      Government undertaking
8.      Registered trust and society
9.      Other entity
DOCUMENTS REQUIRED FOR IEC REGISTRATION
§  PAN issued by Income Tax Authorities.
§  passport Size photograph of the applicant
§  Banker’s certificate in the specified format
PROCESS FOR IEC REGISTRATION
1.      For filing the application you need Class 2 or class 3 Digital signature of the authorized person
2.      Attachments with the application like PAN Card of applicant, passport Size photograph of the applicant and cancelled cheque/Bank certificate required. If the applicant is NRI, RBI approval letter needs to be mandatorily attached.
3.      Visit the website of DGFT and login by entering the PAN. After completion of the process of entering OTP sentto mobile and e-mail, fill up the application and upload the documents.
4.      After successfully filling of application attach DSC of the applicant and submit the same along with the fees prescribed by the government.
5.      Generally, IEC Certificate is issued within 2-3 business, if no discrepancy is found in the application.
CHANGES IN IEC WITH THE INTRODUCTION OF GST
With the Implementation of GST, Government of India through DGFT, in its effort for ease of doing business in India and keeping the identity of person uniform, vide its notification dated 12th June 2017, notified that any person having GSTIN can import or export, into or from India,by declaring the GSTIN at the time of import or export.
Additionally, for the entities who are not registered under GST because of its threshold limit, may use their PAN as their IECfor which application should be made to DGFT for authorizing PAN of Applicant as IEC.
Further, for the existing IEC holders, necessary changes in the system are being carried out by DGFT so that their PAN becomes their IEC. So, IEC holders are supposed to quote their PAN for all the documentation done w.e.f,12th June 2017.

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