Advantages of Obtaining IEC (Import Export Code) Registration in India

Curious about expanding your business beyond borders? Wondering how to tap into international markets and boost your credibility as an exporter or importer? Advantages of Obtaining an Import Export Code (IEC) registration in india is the key to unlocking a world of opportunities. With IEC registration, you can simplify customs procedures, access export incentives, and gain a competitive edge in the global market. Let us discuss the benefits of IEC registration in India.

What is IEC (Import Export Code)?

IEC, short for Import Export Code, is a unique 10-digit alphanumeric code issued by the Directorate General of Foreign Trade(DGFT), Ministry of Commerce and Industry, Government of India. It serves as a legal requirement for any individual or entity engaged in the import and export of goods and services from India. Whether you are a manufacturer, trader, or service provider, obtaining an Advantages of Obtaining IEC Registration in India is crucial for conducting international trade operations.

Importance of IEC Registration

Advantages of Obtaining IEC (Import Export Code) Registration in India is important because:

Advantages of IEC Registration in India

The benefits of IEC code in India are as follows-

• Global Market Access: IEC registration opens the doors to the global marketplace for Indian businesses. Without a valid IEC, it is impossible to engage in cross-border trade. With the code in hand, exporters and importers can explore new markets, establish international partnerships, and expand their customer base, leading to increased revenue and growth opportunities.
• Legitimate Identity: IEC registration provides businesses with a unique identity recognized by government authorities and foreign partners. This authenticity instills trust and credibility in the eyes of international clients and helps in building long-term relationships with foreign suppliers, buyers, and investors.
• Easy Customs Clearance: Customs authorities in India mandate the submission of IEC while clearing imported or exported goods. Having the IEC streamlines the customs clearance process, reducing delays and bureaucratic hurdles, and ensures a seamless movement of goods across borders.
• Eligibility for Export Incentives: Several government schemes and incentives are available to boost India’s exports. These schemes, like Merchandise Export from India Scheme (MEIS) or Services Export from India Scheme (SEIS), require IEC as a prerequisite. With IEC registration, businesses become eligible to avail of these benefits, making their products and services more competitive in the global market.
• No Need for Renewal: IEC registration is typically a one-time process. Once obtained, the registration remains valid for a lifetime, as long as the entity is operational and compliant with applicable regulations. This relieves businesses from the burden of annual renewals and enables them to focus on core trade activities.
• Limitation of Liability: IEC is issued based on the Permanent Account Number (PAN) of the business entity. Hence, it does not disclose any financial information to the public, safeguarding the company’s financial privacy.
• Partnership and Joint Ventures: In case an Indian business plans to enter into a joint venture or partnership with a foreign entity, an IEC is a mandatory requirement. It acts as proof of the company’s eligibility to participate in cross-border business collaborations.

Documents required for IEC Registration

The documents for IEC code registration are:

• Copy of PAN card of an individual, firm, or company.
• Individual’s Voter ID Card or Aadhar Card or Passport Copy.
• Individuals, companies, or businesses cancel checking copies of current bank accounts.
• A copy of the lease or electricity bill, a copy of the business premises.
• A self-addressed envelope for delivering IEC certificate by mail.

Process of IEC Registration in India

The process of IEC registration in India can be completed online through the Directorate General of Foreign Trade (DGFT) website. For availing of IEC code benefits, here’s a step-by-step guide to obtaining IEC registration:

• Visit the DGFT Website: Go to the DGFT website and select the “Services” tab.
• Click on the “IEC” Option: Under the “Services” tab, click on “IEC” from the dropdown menu.
• Choose Applicant Type: Select the appropriate applicant type, which could be an individual, partnership firm, company, LLP, or others.
• Provide Personal/Company Details: Fill in the required details such as name, address, contact information, PAN, and bank account details.
• Attach Supporting Documents: Upload the necessary documents, which may include a PAN card, Aadhaar card, passport-sized photographs, canceled cheque or bank certificate, and any other relevant documents.
• Digital Signature: Depending on the applicant’s type, a digital signature may be required to sign the application. If applicable, obtain a Digital Signature Certificate (DSC) from a government-approved certifying authority.
• Payment of Fee: Pay the prescribed application fee online. The fee amount may vary based on the applicant type.
• Submit Application: Once all the information is filled in correctly and the fee is paid, apply online.
• Application Processing: The DGFT will review your application. If any discrepancies or missing documents are found, you may be asked to rectify them.
• IEC Issuance: Once the application is approved, the DGFT will issue the IEC certificate, which contains a 10-digit unique code.

Duration to Obtain IEC Certificate

The IEC certificate is generally issued within 2-3 working days from the date of application submission. The code does not have an expiry date and remains valid unless it is suspended or canceled by the DGFT.

Final Words

Obtaining an Import Export Code Advantages of Obtaining (IEC) registration in India is a crucial step for businesses looking to participate in international trade. The benefits of IEC code are vast, ranging from global market access to eligibility for export incentives. It also enhances a company’s credibility and legitimacy in the international arena, enabling them to build strong relationships with overseas partners.

Moreover, with the Indian government actively promoting ease of doing business and international trade, the IEC registration process has been simplified and can be easily completed online. Therefore, for any enterprise planning to engage in import and export activities, getting an IEC should be a top priority to capitalize on the immense potential of the global market.

In case of any query regarding the benefits of IEC registration in India, a team of expert advisors from Legal Window is here to assist you at every step. Feel free to reach us at admin@legalwindow.in.