Introduction
IEC CERTIFICATE
An IEC (Import and Export Code) certificate is one of the important and crucial business identification number that is mandatory for all the Indian companies or an individual to practice importing and exporting of goods and services. IEC (Import and Export Code) certificate is issued by the DGFT (Directorate General of Foreign Trade) and Ministry of Commerce and Industry. For the international trade operations in India, it is prerequisite to have a IEC (Import and Export Code) certificate. This guide will give you a walkthrough about the IEC (Import and Export Code) certificate, its importance benefits, etc.
IEC (Import And Export Code) Certificate
IMPORTANCE OF IEC (IMPORT AND EXPORT CODE) CERTIFICATE
There is a certain importance of the IEC (Import and Export Code) certificate for the importers and exporters and some are explained as under:
Legal Requirement
IEC (Import and Export Code) is a mandatory certificate which is required by the importers and exporters for a legal trading of all the goods and services from India.
Business Expansion
IEC (Import and Export Code) certificate helps the business to expand there reach tom the international market with the help of IEC (Import and Export Code) certificate they can market their goods in the international market without any restriction from the government.
Government Benefits
IEC (Import and Export Code) certificate helps various impot-export businesses to have the access to the government policies that can help them to grow
Financial Transactions
For any international financial transactions and remittances IEC (Import and Export Code) certificate is required by the importers and exporters.
Who Needs An IEC (Import And Export Code) Certificate
Any company or an individual who is involved in any of the following activities must apply for the IEC (Import and Export Code) certificate
• Importing goods into India.
• Exporting goods from India.
• Receiving services from outside India.
• Providing services to clients outside India.
Documents Required For IEC (Import And Export Code) Certificate
To apply for the IEC (Import and Export Code) certificate the import-export businesses must provide the following documents to the DGFT (Directorate General of Foreign Trade) and the documents are defined below:
Digital Signature
Digital signature is required of the individual or the business entity for the registration for IEC (Import and Export Code) certificate
PAN
Permanent Account Number of the individual or the business entity is essential for registration
Aadhaar Card
Adhaar card is to be provided with the matching detail as of the PAN card for the IEC (Import and Export Code) certificate
Address Details
An address detail of the branch office is required (via. Electricity bill) for IEC (Import and Export Code) certificate registration
Bank Details Of The IEC Holder
A cancelled cheque and the bank statement is of the business entity or individual.
Application Process For IEC (Import And Export Code) Certificate
The process to obtain an IEC (Import and Export Code) certificate is very easy and straightforward and involves few steps:
Preparation
As discussed before companies must gather all the documents such as PAN card, Bank Details, Address Proof for the submission
Registration On Website
The next step is to register on the DGFT (Directorate General of Foreign Trade) website and create a user profile for the individual or the entity.
Application Form
After successful registration then the next thing to do is fill out the online application form (ANF 2A) on the DGFT (Directorate General of Foreign Trade) portal.
Document Upload
As per the format specified at the DGFT (Directorate General of Foreign Trade) portal upload all the required documents for processing
Payment Of Fees
After all the documents are uploaded than pay the required application fees online through the portal.
Verification And Approval
After all the process is done the application reaches the DGFT (Directorate General of Foreign Trade) verifies the documents and the application. To make sure that everything is in order and after that DGFT (Directorate General of Foreign Trade) issues the IEC (Import and Export Code) certificate electronically.
Benefits Of IEC (Import And Export Code) Certificate
Obtaining an IEC (Import and Export Code) certificate has various benefits and are discussed:
Global Market Reach
IEC (Import and Export Code) certificate helps the business to expand their reach to the international market with the help of IEC (Import and Export Code) certificate they can market their goods in the international market without any restriction from the government.
Government Schemes
IEC (Import and Export Code) certificate helps various impot-export businesses to have the access to the government policies that can help them to grow and improve the trade between the domestic and international markets.
No Renewal Required
IEC (Import and Export Code) certificate provided by the DGFT (Directorate General of Foreign Trade) does not requires a renewal this certificate is provided to the individuals and business entities for a lifetime operation.
Simplified Compliance
IEC (Import and Export Code) certificate helps in smoothing the trade between the domestic and international market it helps in facilitating the smooth regulatory compliance and easier custom clearance so that the business runs smoothly
Increased Credibility
IEC (Import and Export Code) certificate helps the companies and individual entities to enhance their credibility of the business in the eyes of foreign clients and financial institutions so that they can invest in the company.
