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Pankaj Tyagi
| Updated: 24 Dec, 2020 | Category: IEC

What is the Business Utilization of the Import Export Code in India?

: Business utilization of Import Export Code

Creating a sustainable business in a competitive environment can leave anyone in a state of uncertainty. While India is gearing up to surpass its opponents in terms of export, it opens endless opportunities for many newcomers to get into international trading. Owing to the augmentation of technology and existing facilities, demands for Indian commodities in the overseas market have been skyrocketed in the past few years. The section below would explain the Business utilization of Import Export Code.

Contemporary Growth Proposition for Entrepreneurs in Export Business

From automobile parts to processed foods, India is now exporting everything and reducing the export deficit at a drastic rate. The Indian commodities have barely encountered a dip in the global demand for the past few years. And this makes the exporting business the most profitable one for every entrepreneur seeking to reap substantial revenue.

Every exporting house must possess Import Export Code for shipping commodities outside India in a legal way. Apart from legalizing the shipping process from the ground up, the IEC certification offers innumerable benefits to the exporters that assured long-term growth for their business. In this article, we have listed down unseen dimensions of Business utilization of Import Export Code that actually defines it real character.

How IEC Registration can Help Businesses to Ensure Prosperity?

Business utilization of Import Export Code

The section below would explain the Business utilization of Import Export Code in an comprehensive manner.

Access to Broader Landscape of Market

The business with IEC code has the opportunity to untapped the new markets in the overseas location. Since the IEC code holds global recognition, it can be utilized to explore the new consumer base outside the Indian Territory. All business owners need to find prospects through legitimate marketing strategies and start exporting products at aggressive pricing in order to accelerate Business utilization of Import Export Code in the contemporary world.

Trade Promotion via Government Based Expos and Exhibitions 

Currently, every IEC holder in India is eligible to participate in expos and exhibitions organized by the authority in association with the government. The main purpose of these platforms is to facilitate Business utilization of Import Export Code adjudicating the common destination where exporters and prospects of other countries can meet in person. This is beneficial for those who are grappling to identify the target consumers for their business. 

Seamless Tracking of Shipment 

Tracking is something that remains the core functionality of the IEC certification. It helps the customs and other agencies to keep track of shipment 24×7 until it reaches its final destination. It helps the exporter a great deal since they don’t have to wonder about their shipment’s safety. The import-export code goes into every shipping document such as packing list, Certificate of Origin, and bill of lading, thereby ensuring an end to end Business utilization of Import Export Code along with the protection of shipping articles.  

No Periodic Maintenance Whatsoever 

IEC Certification does not come with the obligation of renewal, unlike other government certifications. It enabled the shipper to remain abreast of any unnecessary cost that hinders this code’s core functionalities. It means it would continue to serve its purpose as long as the business remains in existence. 

Impart Legitimacy in the Shipping Process

Businesses dealing with international trading are under the obligation of attaching Import Export code in every shipping document. This helps the shipper keep constant tracking of shipment and let them impart legitimacy in the entire shipping process. Shipment with IEC certification is less likely to encounter delays during the customs authorities’ inspection process.

Quick Disbursement of Payment by the importer’s bank

Earlier, it was quite hectic for the exporter’s bank to avail the payment from the importer’s bank. After the advent of the import-export code, everything has been simplified. The exporting nation bank would require this code for authenticating payment made by the importer against the exportable goods or vice versa. 

How Can Import Export Holders Take Leverage From EXIM Policies? 

IEC certificates serve their purpose in the framework of EXIM policies outlined by the Directorate General of Foreign Trade. The list below explains the objectives of EXIM policy that seems to possess tremendous growth potential for the IEC holders across India in order to simplify Business utilization of Import Export Code.

  • To ensure long-term growth in the exporting business set up in India. 
  • To triggers rapid fiscal growth by facilitating access to essential raw materials, consumables, components, intermediates, and growth-centric scheme for the augmentation of production and existing facilities.   
  • To impart much-needed resilience to technological strength and improve the efficacy of existing industries, henceforth boosting their capabilities while garnering new job opportunities, and to advocate the attainment of globally recognized standards of quality.  
  • To render top-notch goods to the end-users at competitive rates. Incorporating the concept of Canalization at the bigger landscape to curb the illegal trading[1] of certain goods like gold.

Key Points That You Must Remember 

  • IEC (import-export code) is primarily a 10 digit code that goes into various shipping documents. 
  • It essential to serve as a framework for legally executing shipping activities.
  • Currently, the application for IEC registration can be made on DGFT’s online portal. 
  • The fees of IEC registration has been capped at Rs 500.
  • During the registration process, the applicant is supposed to enter various details regarding their business setup, bank details, and address. 
  • Only one import-export code can be issued against the one PAN card. 

Conclusion

Technically, IEC code is meant for paving down legal grounds for executing activities related to global trading, but its utilization is not confined to this basic functionality only. In a nutshell, IEC certification is a doorway to endless business opportunities that empowers the exporter and importer to ensure long sustainable growth for their business. Although obtaining an IEC code is a less erratic process, there are times when applicants run into technical issues while doing the same. If you encounter the same scenario, do not be reluctant to help Corpbiz experts.

Read our article: How to get IEC Registration for Exporting Electronic Appliances from India?

Pankaj Tyagi

Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.

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