Definition of Import Export Code(IEC)
In India, every individual who intends to run an import export business must have an import export license (IEC). The director general of foreign trade (DGFT) provides the import export license. Thus, IEC code is simply a 10 digit code that have lifetime validity. The IEC code acts as the import export license. Without the license, there is no importer who can import any of his/ her goods. On the other hand, exporters cannot enjoy the export scheme benefits of DGFT government department.
Situations that require the import export license:
- When importers are clearing their shipments with the custom. A mandatory requirement by the customs.
- Whenever importers are sending money abroad using banks.Through swift code, the bank requests for the license.
- The customs port requires the license at any occassion the exporters are sending their shipments.
- Whenever the bank account of an exporter receives payment in form of foreign currency. In such a situatio, the banks require the import export license.
IEC code online application package
Company Vakil provides an excellent IEC code online application package, which comprises of:
- Drafting all documents required in IEC application.
- Preparing the applicant’s digital signature.
- Filing the application form.
- Application processing.
- Your business gets over ten legal agreement templates.
The IEC online application process
- The first step involves preparing the application form as per the prescribe format. In this case,the aayaat niryaat form 2A format is used. After the preparation, file the form with the appropriate DGFT governemnt regional office.
- Secondly, all the applicant’s documents gets preapared. In regards to the ANF2A, mandatory documents includes legal entity proof, address proof and identity proof.Nonetheless, the proof must be accompanied by bank certificate and bank details.
- Third step involves filing with DGFT government, via the applicant’s DSC. Also, the IEC application fee must be paid. But,completing the application comes first.
- Lastly, you will receive a soft copy of import export license from the DGFT government department.However,its after the approvale of the application.
Vital documents for import export license application
To apply for import export license, you need :
- A copy of your Pan Card,whether you are individual,firm or company.
- Either a passport, voter id or aadhar card copy.
- A cancelled cheque copy of a current bank account for a firm,company or individual.
- A copy of either a sale deed of the premise,rent agreement or electricity bill.
Characteristics of an import export license
- An individual can obtain the license,since one does not need to register as a legal entity.
- An import export license does does entail annual compliance, such as filing returns. In fact, you do not need to showcase your transactions.
- DGFT provides an import export license with lifetime validity. Therefore, you only incur a one time registration fee,renewal does not occur.
- Government benefits:the government of India promotes any export activity in India. Thus,you can enjoy all the export scheme benefits from the promotion council of customs and export, as well as DGFT, though IEC application.
- Global exposure: apart from enabling you to grow your business in international markets, IEC code allows you to share your product or service all over the world.
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IEC Code Offline Application Process
First step –
To start, you need to file an application form with the DGFT government regional office. However, the format of form should resemble the Aayaat Niryaat Form 2A format.
Prepare these documents:
- ANF 2A form that is already filed.
- Bank receipt showing you have paid an application fee of Rs. 500 to DGFT government department.
- Your bank certificate as per the specified format.
- A certified copy of PAN, which the Income Tax Authorities provides. One PAN number gets one IEC.
- Tow copies of photograph, but should be passport size. Your bank should verify your photograph that appears in your bank certificate.
- An evelope with all your address details. Besides, for local address,the envelope should feature Rs.15 stamp, while outstation address should feature Rs.20 stamp.
- Your address proof or that of the firm.
- All details of directors,partners, trustees and proprietors. Besides, you should provide deatils of head offices,registered offices,factories and braches that are either in India or abroad, alongside the contact details.
- For Private and Public Ltd Companies, you should provide the certificate of incorporation, a memorandum of association, an extract of board resolution that favors the applicant, form 32 if the directors were changed, and form 18 if any registered officer was changed.
- For a partnership firm, you should submit a partnership deed that indicates when the firm was formed, and a no objection certificate from the partners.
Visit the gov.in website, to download the application form. On the seach tab, type”Application Form for Issue Importer Exporter Code”. Alternatively, use https://web.archive.org/web/20180130045758/http:/img.labnol.org/files/iec_application_form.pdf link, or visit the DGFT regional offices to get the form.
involves submitting filled application,alongside all the above documents to the DGFT government regional offices. Otherwise, you can post the application to the DGFT regional office.
a file number will be provided to you. You will be checking the status of your application on dgft.gov.in using the number.
IEC Code Online Application Process
Visit the DGFT official webiste and submit a completely filled application form, alongside other documents. However, pdf fomat applys for all documents.
Ensure you have scanned copies of :
- PAN showing both sides.
- You photo or that of the applicant.
- Bank certificate.
But, all documents should be in gif format, and their size not more than 300KB.
If you an exporter, ensure you have a bank account with any of these banks:
- Union Bank of India.
- Axis/ UTI Bank.
- Punjab National Bank.
- Central Bank of India.
- State Bank of India.
- Bank of India.
- ICICI Bank.
- HDFC Bank.
Visit the DGFT official webiste and click the “IEC Online Application” button.
In order to build a new IEC application, enter your PAN number. Now, move to the ” File” menu and click ” Create.” A new ” ECOM Reference No” will be displayed.
It is time to fill in all your details. These comprise of bank account number, the name of your bank, the authority that issued your PAN, establishment date, PAN date, email address, phone no, pin code, your address, your name, and designation.
Select any of the above banks and make an online fund transfer of Rs.250. The service fee.
Applicants must upload their documents according to their entities. For example, partnership, sole proprietorship, company,bank certificate,photograph and PAN card among others. When uploading, select the following:
- FM32 for 32, if the directors have been changed.
- EBRA for an extract of board resolution.
- MOAS for a memorandum of association.
- BKYC for a copy of bank certificate.
- FOTO for your photo or that of your applicant.
- PANC for a copy of PAN.
- NRID for RBI approval leter. Also use for NRI.
- AOTH for any other document.
- ANFP always stays disabled.
After uploading all the necessary documents, submit on DGFT. Within one to two weeks after submission, you will receive your IEC code.
Have made some mistakes in your import export license? Relax, because you can make an amendment application, without incurring extra charges. However, to avoid the charges, the modification application should be within 90 days. After 90 days, have passed, you will be charged Rs.1000 for an amendment application.
Company Vakil hopes that article answered all your questions regarding import export license application. Thus, feel free to share the article with others.