{"id":42604,"date":"2022-04-25T11:46:39","date_gmt":"2022-04-25T06:16:39","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=42604"},"modified":"2022-04-25T11:47:35","modified_gmt":"2022-04-25T06:17:35","slug":"export-of-services-and-iec-code-know-the-provisions","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/export-of-services-and-iec-code-know-the-provisions\/","title":{"rendered":"Export of Services and IEC Code: Know the provisions"},"content":{"rendered":"\n<p class=\"has-drop-cap\">In the past few years or so, our country\nhas seen a steep growth in it its Small and Medium Enterprises (SMEs) sector.\nThis success was credited to relaxed FTP norms, availability of several\ngovernment schemes, and simplified EXIM regulations. There are certain legal\nrequirements under the FTP for starting an EXIM venture in India. Obtaining an\nImport-export code is one such requirement. In this write-up, we shall dig down\nsome facts about the export of services and IEC code. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/export-of-services-and-iec-code-know-the-provisions\/#What_do_you_mean_by_IEC_registration\" >What do you mean by IEC registration?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/export-of-services-and-iec-code-know-the-provisions\/#What_is_the_meaning_of_Service_Exports\" >What is the meaning of Service Exports?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/export-of-services-and-iec-code-know-the-provisions\/#Is_it_mandatory_to_secure_IEC_for_the_export_of_services\" >Is it mandatory to secure IEC for the export of services?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/export-of-services-and-iec-code-know-the-provisions\/#What_do_you_mean_by_%E2%80%9CSpecified_Services%E2%80%9D\" >What do you mean by &#8220;Specified Services&#8221;?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/export-of-services-and-iec-code-know-the-provisions\/#How_to_apply_and_secure_IEC_Code\" >How to apply and secure IEC Code?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/export-of-services-and-iec-code-know-the-provisions\/#Common_queries_around_Import-Export_code\" >Common queries around Import-Export code<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/corpbiz.io\/learning\/export-of-services-and-iec-code-know-the-provisions\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_do_you_mean_by_IEC_registration\"><\/span>What do you mean by IEC registration?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The <a href=\"https:\/\/corpbiz.io\/iec-registration\"><strong>IEC registration<\/strong><\/a> serves as an authentication code that helps the authority validate the specific importer or exporter. Presently, it is accorded by the Director-General of Foreign Trade (aka DGFT) with lifetime validity. For the time being, nobody is allowed, except the government department and notified NGOs, to engage with EXIM related activities without this very code. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_meaning_of_Service_Exports\"><\/span>What is the meaning of Service Exports?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Exporting of Services refers to services\nrendered overseas,, i.e. outside India. The reimbursement of such services is\nreceived in exchangeable overseas currency. In laymen&#8217;s terms, service export\nis referred to a service provided by an individual of one nation to a different\nnation, its residents, firms, etc. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_it_mandatory_to_secure_IEC_for_the_export_of_services\"><\/span>Is it mandatory to secure IEC for the export of services?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>No. however, there is a condition. In the\ncase of export or import of technology or services, the IEC is required only\nwhen the supplier of the services benefits under the FTP or deals with\nspecified services as cited in Section 7 of Foreign Trade (Development &amp;\nRegulation) Amendment Act, 2010.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_do_you_mean_by_%E2%80%9CSpecified_Services%E2%80%9D\"><\/span>What do you mean by &#8220;Specified Services&#8221;?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>&#8220;Specified services&#8221; refers to\nservices that are banned because of the national security of the country.\nTherefore, if you are involved with any specified service under FTP, you only\nneed the IEC code; otherwise, it is not compulsory. Dealing consulting or\nsoftware services need not seek IEC code. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_apply_and_secure_IEC_Code\"><\/span>How to apply and secure IEC Code?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You are required to follow the given step\nto secure the IEC code: <\/p>\n\n\n\n<ol><li>You must file an application (Aayaat Niryaat Form 2A ) with the respective <strong>DGFT.<\/strong><sup><a href=\"https:\/\/www.dgft.gov.in\/CP\/\"><strong>[1]<\/strong><\/a><\/sup> <\/li><li>Along with the application, you will be required to upload all fundamental documents such as Passport\/Pan card\/Aadhaar etc., address proof like Aadhaar Card\\Voter ID\\Passport, and bank details. <\/li><li>Use the Digital Signature Certificate to validate the application and document during application submission.<\/li><li>Submit the applicable fees <\/li><li>As soon as the application is approved, the authority shall deliver the soft copy of the IEC code. <\/li><\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Common_queries_around_Import-Export_code\"><\/span>Common queries around Import-Export code<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong><em>What is the use of IEC code?<\/em><\/strong><\/p>\n\n\n\n<p>IEC code is a legal permit for conducting\nEXIM activities in India. It is applicable to individuals and businesses who\nintend to do such a business. <\/p>\n\n\n\n<p><strong><em>Does personal export or import require an\nIEC code? <\/em><\/strong><\/p>\n\n\n\n<p>An IEC Code is not mandatory to import or\nexport of goods utilized for personal use. <\/p>\n\n\n\n<p>Who doesn&#8217;t require IEC despite their\nengagement with EXIM acitivities?<\/p>\n\n\n\n<ul><li>government\nministries and departments<\/li><li>notified\ncharitable organizations<\/li><\/ul>\n\n\n\n<p><strong><em>Who is eligible to apply for the IEC\ncode? <\/em><\/strong><\/p>\n\n\n\n<p>Any person or company intending to start\nexport import activities can apply for this code. <\/p>\n\n\n\n<p><strong><em>What is the common documentation required\nfor IEC code? <\/em><\/strong><\/p>\n\n\n\n<p>Common documents required for the IEC\ncode include:<\/p>\n\n\n\n<ul><li>Business\naddress proof.<\/li><li>Business\nregistration copya .<\/li><li>Self-attested\ncopy of the applicant&#8217;s PAN Card.<\/li><li>A\nletter of authority issued by the designated bank. <\/li><\/ul>\n\n\n\n<p><strong><em>What is the application processing time\nfor an IEC code?<\/em><\/strong><\/p>\n\n\n\n<p>The application processing time varies\nsomewhere between 3-and 7 days. <\/p>\n\n\n\n<p><strong><em>Is it possible to start an EXIM business\nwithout an IEC code? <\/em><\/strong><\/p>\n\n\n\n<p>No. IEC Code serves as a fundamental\nlegal document for engaging with import-export business. <\/p>\n\n\n\n<p><strong><em>Do IEC Code adequate to address entire\nshipment legalities?<\/em><\/strong><\/p>\n\n\n\n<p>No. You will be required to present\ndocuments like bill of lading, bill of origin, packing list and so forth, apart\nfrom IEC, before the customs during shipment transit. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Export of Services is a vague subject matter for most business owners in India. To understand it explicitly, one has to crosscheck the legal implications under the foreign trade policy. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our Article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/iec-registration-renewal-and-surrender-underlying-norms\/\">IEC Registration Renewal and Surrender: Underlying Norms<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In the past few years or so, our country has seen a steep growth in it its Small and Medium Enterprises (SMEs) sector. This success was credited to relaxed FTP norms, availability of several government schemes, and simplified EXIM regulations. There are certain legal requirements under the FTP for starting an EXIM venture in India. [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":42607,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[165],"tags":[2294],"acf":{"service_id":"16"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"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.","postViews":5686,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/42604"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=42604"}],"version-history":[{"count":10,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/42604\/revisions"}],"predecessor-version":[{"id":42616,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/42604\/revisions\/42616"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/42607"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=42604"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=42604"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=42604"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}