With the increase in globalization, there is an immense opportunity of Cross Border business, and Import Export Code registration helps the person in unlocking the opportunities of the international business. Every business person dealing in the Import and Export of business is required to obtain IEC registration.
Import and Export Code is one of the basic requirement to run a business at the international level, where an applicant is required to obtain IEC before entering into any transaction. IEC has various advantages as it is the best option for the businessperson who wants to unlock the International Market opportunities. It not only helps in unlocking the International market but also increases the growth of the business.
What is Import Export Code?
The person dealing in the business of Import and Export of goods and services are required to obtain IEC registration in India. Once the procedure of IEC registration completes, a 10-digit unique code is issued to the individual by the Directorate General of Foreign Trade (DGFT)[1]. Import Export Code registration helps in the upliftment of the business. IEC is issued by the authority once and used by the business owner throughout the existence of the entity.
Why is it important to obtain the IEC registration?
To import and export the goods and services, the importer and exporter are required to apply for IEC registration. No person can operate the Import /Export business without getting the IEC.
The Government has come up with an idea of the Import-Export Code for all the companies dealing in the business of Import and Export of products and services. The objective behind providing the IEC code is to keep a check and record of all the activities of the Company dealing in international business by using the IEC code (10-digit Number).
Read our article:How to Obtain IEC Code in India
Advantages of IEC Registration
IEC registration is best for the people doing business of Import and Export and is willing to open the opportunities for International Market. IEC Registration helps in capturing the International Market and also in uplifting the standard of business entity. The Advantages are-
- Capturing the International Market – Import Export Code registration is required for import and export business; it allows the individual to capture the international market, which, as a result, enhances the business standard and takes it forward.
- Acts as a Primary document to start an international dealing – Import-Export Code Registration acts as a primary document to start international dealing.
- Enhances the standard of business – By promoting the global reach, IEC registration helps in maintaining the business relations and in enhancing the quality of business.
- Lifetime validity of the IEC registration – The validity of IEC registration is for a lifetime and remains with the business owner until the existence of the business. Additionally, the renewal of registration is not even required.
- Restricts the dealing in illegal Goods – An authentic and accurate information is required to obtain an IEC Registration. IEC registration cannot be issued by the department without providing full authentic information which, as a result, restricts the illegal dealing of goods.
- IEC Registration provides certain benefits – Import Export Code Registration provides certain benefits to the companies who have obtained an Import Export Code for their business from DGFT customs, and Export Promotion council, etc. Adding to that, companies can also claim the refund of taxes paid while exporting the goods.
Under what Circumstances IEC Registration is not Required?
Under 2 circumstances Import Export Code registration is not required-
- Import and Export of Goods for personal use, i.e. which is not related to trade and manufacturing.
- Import and Export of Goods by Government Ministries and departments.
Process of Import Export Code Registration
- The applicant makes the IEC application with the nearest Regional Authority of Directorate General Foreign Trade (DGFT). The applicant must submit the required forms duly filled in Form – ANF2A (Aayaat Niryaat).
- 1 IEC will be issued against a single PAN number of an Applicant.
In case of Online Application for IEC Registration-
ANF2A can be downloaded by an Applicant in a PDF or Word format from the website. In the case of Online application, an applicant shall make sure that Appendix 18B is attested by the bank authorities in the letterhead along with 2 passport size photos.
Once the procedure is done, An IEC number (10 digit number) is allotted to an applicant which shall be valid for all branches and divisions of the companies.
Conclusion
In the age of globalization, every business entity is obtaining IEC Registration to extend its business to the International level. Business owners are planning to expand their business to an international level by obtaining the Import Export Code registration through proper compliances and procedures.
Read our article:Know about the IEC Exemption in India
