Why Importer Exporter Code (IEC) in India?
Importer Exporter Code! Have you ever encountered the term IEC on Television, Newspapers, and thinking about what it means?
Is it Independent Electoral Commission, Indian Economic Conclave, or Import- Export Code?
Enrich providing the complete and basic guide about the importer exporter code is given. It would not only be beneficial for the business individuals involved in this but also provide sufficient understanding to a normal being also.
Here the effort would be in explaining all major aspects of IEC code in simpler terms. So starting with its introduction.
What is the Importer Exporter Code?
IEC is Importer and Exporter Code, IEC being issued is the same as the PAN of an individual/company and is required for every import/export operation. The DGFT oversees issuing import-export codes. DGFT stands for Director General of Foreign Trade.
Now the question may be changed from what is Import Export Code to who needs them, and where is it required?
IEC is required by those who want to expand their businesses overseas or those who are involved in the import and export of goods and services across national borders. Importer Exporter Code License is not required in India for trading personal (does not include manufacturing, trade, and farming) goods. IEC is also needed for those who want to avail the benefit of the government policies regarding Import – Export. IEC is needed at customs, during bank transfers across boundaries.
As of now, there is mention of benefits of the government policies so for better understanding let’s have a look at the benefits that one gets after obtaining IEC.
Overseas Trading– Import Export Code provides you the facility to expand your business over foreign countries. The basic and most important thing you would need while trading overseas is the Importer Exporter Code. IEC opens your road to expansion and growth on foreign lands.
Export/Import subsidies- The government offers benefits such as export incentives and import duty exemptions in the case of import. Currently, schemes like RoDTEP, TMA, Export promotion capital goods , Advance Licences, DFIA Licences, Deemed export duty drawback benefits etc. are operating by DGFT.
Facilitates Electronic Fund Transfer (EFT) – EFT (Electronic Fund Transfer) is a new service offered to exporters/importers that allows them to submit their license fees via the Internet rather than visiting a bank to make the payment. This procedure is being proposed to make electronic payments more convenient. Only electronically filed applications will be accepted.
How can I get the IEC?
Since the process for registration of importer-exporter code is quite complicated so for a better understanding of it, you should look out for some professional websites about this. But an overall outlook you could easily understand here as well. The overall process is breakdown into five major steps
Step 1. Login creation
Step 2. Documentation
Step 3. Application for Import Export License
Step 4. Verification by DGFT
Step 5. Approval and Issuance of IEC Code
From here on you are not at the absolute start of understanding the term Import Export Code now you have oversight about the Importer Exporter Code in your mind as well. But it is advised that if someone is planning to obtain an IEC for their business then they should hire or take consultation from enrich services expert team. As per the research about Professional Utilities on which customers have utmost trust. This will not only improve their chances of approval for the application of IEC but also help them save their time. Time is everything that a business needs.