With the emerging competition in the market the business dealers need to expand their market scope so as to maintain the status in the market. Hence, sustainable growth can be achieved if the markets start dealing at the international level for which Import and Export Code (IEC) registration is a mandatory condition. Thus, any business entity planning to start a import and export business must obtain this unique ten digit code from the authorised body. Under the Commerce Ministry, Government of India we have Director General of Foreign Trade, which is given the authority to issue the IEC Code to the applicants. This article will focus on why a Bank Certificate is required to get an IEC Code?
What is the Requirement of IEC in Business?
The major reason behind the requirement of IEC for business is given below:-
Import and Export
The main motive behind getting the IEC license is to start with import and export goods and services. Obtaining IEC number is a pre-requisite condition for the importer or exporter before starting up with the business of goods and services globally. Thus, IEC license is must for import and export business.
Shipment Clearance
It is important to show IEC for the clearance of shipment. Hence, IEC certificate is compulsory to pass through the shipment process which is the concluding step for exporting goods.
Custom Clearance
Custom Department is the only authority to perform the custom clearance. Custom clearance is the authentication check procedure for the imported goods where they ask for IEC certificate. Hence, the importers must furnish IEC while importing the goods for successfully passing through the custom clearance.
Payments in Respect of Import and Export
The importer and exporter both are obligated to furnish the IEC certificate while making payments and during receiving payments.
What is the Process of getting an IEC Registration?
- The business owners should prepare an application in the prescribed format. The form required for filing IEC Code is known as the Aayaat Niryaat Form Number 2A (ANF2A) and it must be filed to the respective DGFT Regional office.
- Next, the applicant must prepare and acquire all the mandatory documents that act as an identity proof, address, contact details, and business registration. These documents are required to be sent together with the Form ANF2A.
- The applicant must have the Digital Signature Certificate to file the application to the DGFT, so the applicant must be ready with a digital signature certificate.Â
- After applying, the applicant must pay the necessary processing fee for completing the IEC Registration.
- Finally, the DGFT Office executives shall verify and review the form and the submitted documents, and once it is approved, the applicant shall receive an IEC Certificate from the government.
Read our article:What to Do If Application for IEC is Rejected?
What are the documents required for IEC Registration?
The applicant must upload the copies of all the scanned documents that are required to submit. The file formats that are allowed by the DGFT portal are the GIF and PDF and the other format files will not be allowed to be uploaded.
The IEC Code Registration process mandatorily requires the following documents:
- Bank Certificate from the bank
- Pre-printed cancelled cheque from the bank
- Aadhaar card or the Passport or the Voter ID of the applicant
- The Address proof of the business which shall include the Rent Agreement or the Property Registration document or the Electricity Bill for the place of business
- Where the address proof is not in the company’s name, the premise’s owner shall submit his Non-Objection Certificate .
- Photographs, Passports and PAN Cards may be uploaded as GIFs while the MoUs, sale deeds, Bank certificates and the registration certificates must necessarily be in the PDF format. In addition, the Aadhaar card, Cancelled Cheque, Driving License, and the Voter ID may be uploaded either in GIF or as a PDF.
The given below documents are not compulsory for the IEC certificate registration;
- Digital Signature Certificate
- Copy of PAN CardÂ
- Photograph
What is the Requirement of Bank Certificate in Getting IEC Code?
While making an application for the registration of IEC code either for issue or modification in the IEC number, it is compulsory for the applicant to provide a bank certificate and the supporting documents. The applicant is required to obtain from its banker a duly signed and sealed bank certificate. The purpose of such bank certificate is that it will automatically give essential information about the applicant and his banking details.
The format of the bank certificate for obtaining the IEC certificate that the DGFT shall issue will be available on the DGFT’s official website. Directorate General of Foreign Trade is an attached office of Ministry of Commerce and Industry under the Government of India[1]. DGFT has its headquarters in Delhi and it is responsible for the regulation and promotion of the foreign trade in India.
Format of Bank Certificate for Issuance of IEC
(To be issued on the Bank’s official letter head)
Ref No. ………………………
To
……………………………………
……………………………………
……………………………………
(Name and address of the issuing authority)
Sir/ Madam
…………………………………………………………….. (Name of the bank or the branch) certify that M/s……………………………………………….. (Name and Address of the holder of the account) is/ are maintaining a Savings Bank Account or Current Account (tick mark on whichever is applicable) No. …………………… with us, and since …………..
Affix the applicant’s Photograph (passport size)
Note: The photograph as attested and affixed must be that of the account holder.
(Signature of the authority issuing)
(Above the rank of Manager)
Name…………………….
Designation ………
IFS Code of the bank issuing:
Date: ……………….
Place: ……………….
(Banks’ Stamp)
Conclusion
The applicant needs to comply with all the compulsory documents necessary to obtain the IEC certificate. Bank certificate is one such document and the applicant has to submit the same for obtaining the IEC certificate from the DGFT.
Read our article:What is the Format of IEC Application?
