In view of the previous notification dated 25/06/2020, the Government of India in association with the Ministry of Commerce and Industry Department of Commerce and Directorate General of Foreign Trade (DGFT) is now planning to unveil the revamped DGFT services into the new DGFT IT platform. The revamped services aim to provide paperless and digital services to IEC holders. The good news is that the inclusion of the new features has been confined to the existing DGFT portal. Let’s have a look at the revamped online services for the business owners having IEC registration.
Release of Additional Services for IEC holders
The authority will soon unleash various other services for IEC holders such as Advance Authorization*, EPCG, DFIA, and Obligation Discharge (EODC) in subsequent updates. In addition to that, the authority promises to roll out additional processes like Norms Fixation, Steel Import Monitoring System (SIMS), Free Sale & Commerce Certificate, and Import Licensing in upcoming months. The new online system shall incorporate two-way communication to ensure seamless correspondence between the DGFT and the exporter/importer. With a new system in place, the applicant will be able to apply, track the status of the application, and respond to the errors identified during the verification.
Read our article:A Complete Guide on Documents Required For IEC Registration
Important Parameters to be Considered by IEC Holders
Given this announcement, the authority wishes to draw to the attention of importers and exporters to the given action points:
- The applicants are required to access the new platform via user-based IDs before engaging with the application procedure. All IEC holders must create login credentials via the web-based registration process before the advent of the new phase of the platform.
- It is mandated for the applicants to create user IDs with the help of email ID and mobile number. The portal will automatically authenticate the same through the OTP verification system.
- The applicants must link their login IDs to their specific IEC. The linking process would be accessible once the applicant is authenticated by portal via Digital Signature Certificate or Aadhaar based e-Sign.
- Only the Aadhaar e-sign of the directors/Karta/proprietor may be used for Aadhaar based authentication.
- For Digital Signature Certificate i.e. DSC a Class-II or Class-III certificate is permitted.
Categories of Digital Signature Certificate (DSC)
- After successful linking of the IEC, the applicant must complete the IEC auto validation process via the ‘Modify IEC’ process.
- IEC holders must head over to the option “Manage Profile” to update their profile. Further, the applicant must fill in all the information about Export Performance, Industrial Registrations, and other details in the profile section. Since profile updation is an automatic process, it doesn’t attract any kind of fees.
- IEC holders should take advantage of Frequently Asked Questions (FAQs) and Help manuals accessible in the new website of DGFT under the “Learn” section.
- To reduce the nuisances related to the newly revamped website, all RAs must take the responsibility to spread awareness among the importers and exporters. It would allow the applicants to use the new mode of services with ease.
- In the view of above, Export Promotion Councils & Commodity Boards must take required measures to spread awareness regarding the new platform among the registered exporters. The authority can take advantage of different communication channels such as newsletters and email for the distribution of the information.
Before you brace yourself for the upcoming services, it’s important to get familiarize with the available processes.
What is Advance Authorization?
The advance Authorization Scheme allows the exporter to escape the duty imposed on the importable input used for producing the export items. The exporters cannot avail of this scheme in the absence of the IEC code. One can take the reference of Chapter 4 of Foreign Trade Policy that encloses the detailed procedure for the same.
What is Duty-Free Import Authorization (DFIA)?
Duty-Free Import Authorization (DFIA): Duty-Free Import Authorization exempts the duty applicable to the import of input that is used for producing exportable goods. DFIA acts as an allowance for wastage, energy, fuel, etc used for manufacturing the items for export. DFIA is granted on the basis of inputs & exportable goods as per Standard Input and Output Norms (SION). The import right will be limited as per the quantity prescribed in SION. To avail such a scheme, the exporters are liable to accomplish a minimum of 20% value addition.
What is the Export Promotion Capital Goods (EPCG)?
This scheme aims at providing duty-free import of capital goods including spare regardless of the production stage subjected to an export obligation of six times of duty saved on the same under EPCG scheme which required to be fulfilled within six years from the issuance date of the authorization.
EPCG scheme covers all the exporters with or without the manufacturing facilities. The scheme is accessible to a service provider who is serving as a Common Service Provider (CSP). Exporter with EPCG authorization is eligible to export the goods either directly or via a third party. These services for IEC holders will be available in the upcoming months.
The host of features in the DGFT website will benefit the IEC holders on account of registration, application status, technical support, etc. While some of the features are already on board, the authority is planning to roll out the remaining features in the next phase. Get prompt assistance from CorpBiz’s experts in case if you seek some advice on IEC code. Our experienced executive will guide you through the documentation process in the professional way .
Read our article:How Can Small Businesses Obtain an IEC Code?