Import/Export Code (IEC)
Import Export Code (IEC) is required by a person who's want to start import export business in india. IEC Code is issued by the Director general of foregin trade(DGFT). its a 10 digit code with a lifetime validity. Mostly importers merchant can'nt import any goods without the IEC Code and exporter merchant can'nt avail the benefits from the DGFT Department for the export scheme etc.
IMPORT EXPORT CODE IS REQURIED IN FOLLOWING SITUATION :
a) When importers have to clear the shipments from the customs then it's required by the customs.
b) When importers send the money to abroad via banks then it's required by the banks through SWIFT Code.
c) When exporters have to send the shipments then its required by the customs port.
d) When exporters received the money in foregin currency directly into the bank then its needed by the banks.
HOW TO APPLY FOR IMPORT EXPORT CODE (IEC) REGISTRATION
Step 1 : First of all we have to prepare a application form in the prescribe format i.e aayaat niryaat form 2A format and filed with the proper DGFT Regional office.
Step 2 : In the second step we have to prepare the necessary documents related to the applicant identity & address proof and legal entity proof with the bank details & certificate in respect of ANF2A.
Step 3 :In the third step once application has been completed, we file with the DGFT through DSC of the applicant and pay the appropriate fee or cost of the IEC Registration.
Step 4 : Once application has been approved then you will get the IEC Code in the soft copy from the government department.
DOCUMENTS REQUIRED FOR IMPORT EXPORT CODE(IEC) REGISTRATION
IEC Code Registration required following things : Individual Person
(i) Personal or Company or Firm Pan Card Copy.
(ii) Personal aadhar card or voter id or passport copy.
(iii) Personal or company or firm current bank account cancel cheque copy.
(iv) Electricity Bill Copy or Rent Agreement or Sale deed of the premise copy.
FEATURES OF THE IMPORT EXPORT CODE(IEC) REGISTRATION
International Exposure : IEC Code helps you to grow your business from local market to international market and expand your product or service across the global.
Government Benefits : Govt of India always promote the export activity in india so through IEC Code Registration you can avail all the export scheme benefits from DGFT, Customs and Export Promotion Council.
No Renewals : IEC Code issued by the DGFT for the lifetime validity so you have not required renew every year so its a just one time cost of the registration.
No Annual Compliance : IEC Code have no annual compliance like returns filings etc. Even you have not show anywhere the transactions.
Individual person : IEC Code can be obtain by the individual person also, they have not required to register the legal entity.
VALUE BASED ADVANCE LICENSE
Under a value based advance licence, any of the inputs specified in the licence maybe imported within the total CIF value indicated for those inputs, except inputs specified as sensitive items.Under a value based advance licence, both the quantity and the FOB value of the exports to be achieved shall be specified. It shall be obligatory on the part of the licence holder to achieve both the quantity and FOB value of the exports specified in the licence.
AMENDMENTS TO THE ADVANCE LICENSE SCHEME
(i) Modvat credit can be taken on inputs which go into the manufacture of export products, under the Advance License Scheme.
(ii) Expansion of the concept of Advance Intermediate License, which hitherto was only quantity based to value based.
(iii) Advance licenses can now be transferred after the export obligation has been fulfilled, and the bank guarantee or LUT redeemed.
(iv) Drawbacks are permitted in respect of duty paid materials, which are imported or indigenous.
(v) Import of mandatory spares upto 5% of the CIF value of the license is now allowed.
(vi) The list of sensitive items has been pruned. Flexibility has also been granted to the exporter for using the unutilized CIF value of sensitive items for importing non-sensitive items.