What is an Import
Export Code (IEC)
Import Export Code (IEC) is a crucial registration needed
for businesses involved in importing or exporting goods and services from
India. Think of it as a passport for your import-export business. It's issued
by the Directorate General of Foreign Trade (DGFT) and is mandatory if you want
to engage in international trade.
Here’s why it’s important: without an IEC, you can't import
goods into India or export goods from India. It's a unique code that identifies
your business to customs authorities, helping streamline transactions and
ensuring compliance with laws and regulations.
Getting an IEC is straightforward. You apply through an
online portal, submit required documents like your PAN card, identity proof,
and address proof, and pay a fee. Once approved, your business can start
trading internationally, opening up new opportunities for growth and expansion.
In essence, the Import Export Code is your gateway to global
trade, enabling you to buy and sell goods across borders smoothly and legally.
Is an IEC Code
License Mandatory for Export Service Providers?
The Import Export Code (IEC) license is essential for
businesses involved in importing or exporting goods and services from India. It
acts as a unique identification number issued by the DGFT, without which no
import or export transactions can be conducted legally.
For exporters of services or technology transfers, the
requirement for an IEC Code varies. It's mandatory if they seek benefits under
the Foreign Trade Policy or deal with specific services or technologies listed
in Section 7 of the Foreign Trade (Development & Regulation) Amendment Act,
2010.
Before exporting goods or services, exporters must apply for
a Letter of Undertaking (LUT) annually. This allows them to enjoy benefits
under the Foreign Trade Policy without paying taxes upfront. The LUT simplifies
the export process for registered businesses, enabling them to supply goods and
services internationally.
In essence, the IEC Code is crucial for any business engaged
in international trade from India, ensuring compliance with regulations and
facilitating smooth transactions.
The REQUIREMENT OF
DIGITAL SIGNATURE FOR IMPORT EXPORT CODE
Applying for an Import Export Code (IEC) online requires the
use of a Digital Signature Certificate (DSC). This DSC is typically of the
business owner or director and serves as a secure way to authenticate the
online application.
Digital Signatures (DSC) are highly recommended for the
online IEC application process because they ensure the authenticity and
security of the information submitted.
The DGFT offers a unique Digital Signature Certificate
specifically for organizations that already possess an IEC code for import and
export. Using this unique DSC can also result in cost savings of up to 50% on
License Fees.
If you need assistance with arranging a Digital Signature
(DSC) for your IEC application, services like E-Startup India can help
facilitate this process smoothly.
In summary, a Digital Signature Certificate is essential for
applying for an IEC online, providing security and authenticity to your
import-export transactions.
What is the process to apply IEC registration
· Upload Documents: Begin by
uploading all necessary documents and information through the designated web
portal. This typically includes your identity proof, address proof, and other
relevant business documents.
· Choose Package and Payment:
Select a suitable package for your IEC application and proceed to make the
payment online. Various payment modes are usually available for convenience.
· Application Preparation: Our
professionals will prepare your IEC application in the prescribed format. They
ensure all details are accurately filled to expedite the process.
· Digital Signature Attachment:
Attach the applicant's digital signature securely to the online application
form before submitting it to the Directorate General of Foreign Trade (DGFT).
· Verification and Processing:
DGFT officials will verify and process your application within approximately
one week. They review all submitted documents and ensure compliance with
regulations.
· IEC Certificate Issuance:
Upon successful verification, you will receive your Import Export Code
certificate via email. This certificate serves as official approval for your
business to engage in import and export activities.
REQUIRED
DOCUMENTS FOR IMPORT EXPORT CODE
· Passport Size Photograph: A
recent photograph of the applicant is required for identity verification.
· PAN Card: Your Permanent
Account Number (PAN) card, which serves as a primary identification document
for tax purposes.
.· Bank Account Details: Details
of your bank account, which may include the account number, IFSC code, and
branch details.
·
Pre Printed Cancelled Cheque: A
cancelled cheque from your bank account to verify account details such as
account number and IFSC code.
· Certificate from Bank: A
certificate issued by your bank confirming the details of your bank account.
This ensures authenticity and compliance.
· Address Proof: Documents
like Aadhaar card, passport, voter ID card, driving license, or utility bills
(electricity, water, gas) that confirm your residential or business address.
THE
EXPORT PROMOTION CAPITAL GOODS (EPCG) SCHEME
The Export Promotion Capital Goods
(EPCG) Scheme is a government initiative aimed at boosting exports by allowing
businesses to import capital goods at zero customs duty, including spares
needed for pre-production, production, and post-production activities. Here’s a
simplified explanation:
**Purpose of the EPCG Scheme:**
The EPCG Scheme encourages exports by
facilitating duty-free import of capital goods. This helps businesses enhance
their production capabilities and competitiveness in global markets.
**Eligibility:**
Manufacturers, exporters, and merchant
exporters are eligible to participate in the EPCG Scheme. Service providers
recognized as Common Service Providers (CSP) can also benefit from it.
**Application Process:**
To avail the EPCG Scheme, businesses
with an Import Export Code (IEC) must submit an application as specified in
Appendix 10A of the Handbook issued by the Directorate General of Foreign Trade
(DGFT). The application should include required documents and information.
Key Obligations:
1. **Export Obligation:** Businesses
must fulfill an export obligation by exporting products manufactured using the
imported capital goods. The obligation typically requires exporting goods
equivalent to six times the duty saved on the imported capital goods within six
years from the issuance of the authorization.
2. Export Requirements: Export should be
in the name of the importer or licensee. Direct exports are preferred, but
exports through third parties are allowed if the importer’s name is included on
the Shipping Bill.
3. Currency and Type of Exports:
Proceeds from exports must be repatriated in freely convertible currency.
Physical exports are mandatory, and deemed exports may also count towards
fulfilling obligations, though no additional benefits are granted for deemed
exports.
4. Special Considerations: If the
exporter also benefits from other export schemes like Duty Exemption, exports
under those schemes can also count towards fulfilling EPCG obligations.
5. Computer Software Exports: Specific
rules apply to the export of computer software under the EPCG Scheme, with
flexibility regarding average export requirements over previous years.
Confirm Icegate
Registration
· ICEGATE Registration Verification:
- Visit the official ICEGATE registration verification
utility at
- This utility allows you to check details such as your
ICEGATE ID, role, registration date, and registered filing service. It's
crucial information for managing your import-export business.
· Matching IEC with GSTIN:
- After verifying your ICEGATE registration, you may need
to match your Import Export Code (IEC) with your GST Identification Number
(GSTIN).
- This process ensures that your IEC and GSTIN are
correctly linked, which is important for compliance and seamless
operations in import-export transactions.
Corrdinating GSTIN
and IEC
· Log in or
Register: If you're not already logged in, you may need to register or log
in using your credentials.
· Enter Details: Fill in the required details
such as your IEC and GSTIN numbers accurately.
· Submit and Verify: After entering the
details, submit the form for verification.
· Confirmation: Once verified, your
GSTIN will be successfully integrated with your IEC. This ensures that customs
officers can cross-reference information across government databases, promoting
consistency and accuracy in import-export transactions
IEC
CODE LICENSE HOLDER’S CERTIFICATE OF ORIGIN
A Certificate of Origin (CO) is a
crucial document in international trade. It confirms that the products in an
export shipment were entirely obtained, produced, manufactured, or processed in
a specific country.
For IEC Code License Holders: IEC Code
License holders, who are involved in exporting goods from India, must obtain a
Certificate of Origin. This document is necessary for customs clearance
operations in almost every country globally.
Issuing Authorities: COs in India are issued by recognized
bodies such as the Indian Chamber of Commerce and Trade Promotion Council of
India.
Types of Certificate of Origin:
1. Non-preferential
Certificate of Origin: States that the exported/imported products do
not qualify for preferential tariff treatment. Standard tariffs are applied as
per general trade agreements.
2. Preferential
Certificates of Origin: Issued for products eligible for preferential
tariff treatment under specific Regional Trade Agreements. These COs confirm
goods that qualify for lower taxes or other allowances when exported to
countries offering such benefits.