In these times of ever-growing competition, every business desires to grow and expand its market reach. Although making your business international is not an easy job, before going international, a company has to complete IEC code registration process and obtain the Import Export Code (IEC) license for commencing an import-export business in India. A ten-digit registration code is issued by the Director-General of Foreign Trade (DGFT). Importers merchant cannot import commodities without obtaining IEC code registration, and in the same way, the exporter merchant will not be able to avail benefits from the export scheme offered by the Director-General of Foreign Trade without acquiring an IEC code registration certificate.
Benefits of IEC Code Registration
The Procedure for IEC Code Registration is as follows:
Step 1: Visit on https://dgft.gov.in/CP and then click on the “Apply for IEC”.
Step 2: Enter registration details such as:-
· First and Last Name
· Register User as “Importer/ Exporter”
· Pin-code, District, State and City
· E-mail address & Mobile number
Click on “Send OTP” after entering the details. Put the OTP received on e-mail id and mobile number. The applicant will receive a notification upon successful confirmation of OTP, which the applicant has to change ahead of the first login. Now, click on “Apply IEC”; and then click on start fresh application and log - into the “Customer Portal” using the identifications inserting in step 2.
Step 3: Start filling the particulars in the IEC code registration application which are as follows:-
1. General Information
Nature of the Establishment
Company/Firm Name
PAN Card of Establishment
Insert Name as per PAN Card
Date of Birth /Incorporation of the entity
The category of an exporter
Mention whether the firm is located in SEZ or not.
Select whether the firm is located in EHTP Scheme, EOU Scheme, BTP scheme or STP Scheme.
Enter the LLPIN /CIN in case of company/ LLP
Enter GST Number
Enter the mobile number and E-mail
Upload proof of establishment/registration/incorporation. This additional document is compulsory for HUF, Partnership, Registered Society, Trust, and Others.
Enter the particulars of the firms’ address
Upload supporting documents as “Address Proof”. Address proof can be any of the following documents: Sale Deed, lease deed, electricity bill, MoU, telephone landline bill, post-paid bill.
Select “Save and Next” after entering details successfully.
2. Details of Director/Karta/Proprietor/Partner of the Entity which is comprised of the following agenda:-
Add the name as per PAN Card
Add PAN Card number of Karta/Proprietor/Partner/ Director
Enter Date of birth as mentioned in the PAN Card
Address of the Karta/Proprietor/Partner/ Director
Mobile no of the Karta/Proprietor/Partner/ Director
Select “Save and Next” and move to the next step.
A. Enter Bank Information of the Establishment
Bank Information such as Bank, Branch name, account number, IFSC code, account holder name. Upload cancelled cheque or Bank certificate as prescribed.
Select “Save and Next.”
B. Select Other details I.E. Preferred area of Operations.
Click on the “Save and Next” after submitting the details successfully.
C. Select The Acceptance Of Undertaking/Declaration And Fill The Place As Well.
Click on “Save and Next” after entering details to proceed further.
D: Concluding Submission:-
Click on “Sign” at the bottom of the page - after completing step 3.
Select the manner of submission i.e. either through Digital signature certificate or Aadhaar OTP. Enter the ‘Aadhaar number/Virtual ID’ and click on send OTP if the manner of submission is Aadhaar OTP, and submit the form
Confirm it and carry on to make the payment of INR 500 against application after the prescribed form is signed. For completion of payment, you will be redirected to the Payment Gateway.
After the payment is completed you will be redirected to the official Website of DGFT and the payment receipt will be displayed on the screen. The applicant can also download the payment receipt for future reference. In case of payment failure, wait for some time to reflect the payment on the ‘BharatKosh’ Payment Gateway.
NOTE: - The applicant will receive the IEC registration certificate on the registered e-mail address. You can also download the certificate by logging on the official Website of DGFT by clicking on “Print Certificate” under “Manage IEC.” After that, the Import Export Code must be communicated to CBIC.
Conclusion
Import Export Code registration is important for a business that is involved in the import or export of goods and services. Importers merchant cannot import goods without the IEC Code Registration, and similarly, the exporter merchant cannot avail benefits from DGFT for the export scheme. Importers merchant cannot import commodities without obtaining IEC registration, and in the same way, the exporter merchant will not be able to avail benefits from the export scheme offered by the Director-General of Foreign Trade without acquiring an IEC code registration certificate.