An Import Export Code (aka IEC) is compulsory for all business owners willing to step into export or import business in India. The Director-General of Foreign Trade is an apex government institution that grants the IEC to businesses in India.
The IEC is a 10-digit code that comes with lifetime validity and empowers businesses to engage with import-export businesses. The process for availing IEC has confronted many changes in the past few years. One question that most entrepreneurs have is why they said authority seeks a bank certificate for Import Export Code processing. In this write-up, we will cater to this particular query and offer some clarification over the format of the bank certificate for Import Export Code.
What is the IEC (Import Export Code)?
The Import Export Code is a basic government license required for carrying out export-import business in India. DGFT is the sole government authority in our country that issues this license.
It is a ten-digit code that averts any requirement for recurring renewal, i.e., it stays valid till the business remains operational. The Import Export Code also allows export & import businesses to access multifarious benefits under DGFT.
Read our article:Why is a Bank Certificate Required to obtain an IEC Number?
When do Businesses need an Import Export Code?
Following are the scenarios that mandate the possession of IEC for import and export business:-
- Importer wants to fulfill customs norms for clearing the shipments from the port.
- Importer wants to make payment to a foreign client via banks or financial institutions
- Exporter wants to clear the shipment from the port through customs
- Exporter wishes to avail payment from client sitting abroad directly to his/her account.
As per the prevailing government’s order, the Import Export Code does not apply to valid GST registration holders. Under such events, these individuals can utilize their respective PAN cards to exporting or importing shipments.
Also, the Import Export Code is not mandated for goods that are shipped with the intention of personal use only. The Government of India has exempted notified charitable institutions and departments or ministries from the requirement of availing IEC registration.
Bank Certificate for Import Export Code: Why do you Need one?
According to DGFT, the submission of a Bank certificate is mandatory for those seeking IEC registration in the absence of a canceled cheque. The concerned applicant can click the following link to download the format of bank certificate, viz ANF2(l), for the issuance of IEC registration http://dgftcom.nic.in/exim/2000/iec_anf/app4.pdf
Again, if, for some reason, the applicant fails to arrange the canceled Cheque for registration purposes, they can furnish the bank certificate in the format described above instead.
Format of a Bank Certificate for Issuance of IEC
The bank certificate format should be typed on the bank’s formal letterhead. Also, the inclusion of the Bank manager’s signature is important in such a certificate as it the only way to authorize it. Apart from that, keep the following conditions in mind before handing over the bank certificate to the respective authority for the registration purpose.
- The Bank Certificate shall stand invalid if it is typed on paper other than Letter Head of Bank
- Any alteration to the existing format or language of the bank certificate will lead to the revocation of the application.
- The photograph affix on the certificate must be stamped and signed by the applicant.
- The inclusion of the IFSC Code of Bank is compulsory in the Bank certificate.
- The Bank certificate should be made in favor of the Regional DGFT Authority.
Documents Required other than Bank Certificate for Import Export Code
The filing for IEC registration has been made completely online by the DGFT. During online application submission, the applicant will be asked to upload the supporting documents in the standard file formats, i.e., GIF and PDF.
Apart from Bank Certificate, the Import Export Code Registration seeks the following documents:-
- Addhaar card / Passport / Voter ID
- Firm’s address proof: Rent Agreement or Property Registration or Electricity Bill for the place of business
- NOC from premises’ owner in case of non-availability of aforesaid address proof.
Photographs, Passports, and Pan Cards may upload as GIFs. Meanwhile, the MOU, sale deeds, and other important documents must be uploaded in PDF format. The Driving License, Voter ID, Addhaar card may upload either as a PDF or a GIF.
Other Documents for Import Export Code Registration are as follows:-
- Digital Signature Certificate
- Copy of PAN Card
Online Procedure for Import Export Code Registration
Step 1: Visit – https://dgft.gov.in/CP/.
Step 2: On the home window, tap on the “Apply for IEC” button
Step 3: Enter the following details aptly:-
- Register User
- First Name & Last Name
- Mobile number and Email ID
- PIN code
Step 4:- Soon after filing the information above, tap on the “Send OTP.” The portal will then sent you One Time Password on your registered contact details. After this, go back to the home window, tap on “Apply IEC” button, and log in to the portal.
Step 5: After login, aptly fill out the IEC registration form.
Step 6: Choose the suitable option from the following :- Director / Partner / Karta / Proprietor / Managing Trustee of the Entity
Step 7: Next, enter the following details
- Bank information
- Account holder name
- Branch name
- Account number
- IFSC Code
Step 8: Upload either Bank Certificate or Cancelled Cheque as required and tap on the “Save and Next” button.
Step 9: Select Preferred sectors of operations followed by Acceptance of Undertaking/Declaration and then tap on “Save and Next” button
Step 10: click on the “Sign” button present at the lower section of the page.
Step 11: make the online payment.
It is evident from the above that the bank certificate for Import Export Code is an absolute compulsion in the non-availability of canceled cheques. If you need any clarification on that, head over to the message box and drop your concern in detail. The professional at CorpBiz will strive to resolve them with utmost authenticity.
Read our article:What is the Complete Procedure to Check the IEC Application Status?