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
§ 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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