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The Import Export Code (IEC) is a crucial registration for businesses involved in importing or exporting goods and services from India. Issued by the Directorate General of Foreign Trade (DGFT), the IEC serves as a passport for international trade operations. This code is essential for businesses to legally engage in cross-border trade and is necessary for clearing goods through customs and for banking transactions.
Key Points of Import Export Code Registration:
- When IEC is Required: IEC is mandatory for any business engaged in the import or export of goods and services in India.
- Issuance Authority: The IEC is issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industries, Government of India.
- Annual Renewal Required: The IEC is not a one-time registration; it requires annual renewal.
- No Returns Filing: There are no filing requirements for returns or further procedural compliances associated with the IEC.
- Customs & Banking Requirements: The IEC must be quoted with customs authorities and banks for the import and export of goods, as well as for international payments.
- Authorized Dealer Code (AD Code): Required for customs clearance when exporting goods. This code can be obtained from a bank.
Exemption:
Certain stakeholders are eligible for IEC exemption, including:
- Government Entities: Central or state government ministries or departments.
- Personal Use: Individuals importing or exporting items for personal use unrelated to trade, manufacturing, or agriculture.
- Low-value Transactions: Individuals importing or exporting goods from or to Nepal, Myanmar (via Indo-Myanmar border areas), or China, provided the CIF value does not exceed ₹25,000 (or ₹1 lakh for Nathula port).
Requirement of Digital Signature:
Importers and exporters can apply for the IEC online, necessitating a Digital Signature Certificate (DSC) for the business owner or director. The DGFT issues a unique DSC for organizations with an existing IEC, allowing applicants to save up to 50% on license fees.
IEC Registration Process:
- Upload the necessary documents and information on the web portal.
- Choose a package and make online payments through various modes.
- Professionals will prepare the application in the prescribed format.
- Attach the applicant’s digital signature and file the application online with DGFT.
- DGFT officials will verify and process the application within a week.
- Upon successful verification, the Import Export Code certificate will be sent via email.
Related Schemes:
- Export Promotion Capital Goods (EPCG) Scheme: This government initiative promotes exports by allowing the import of capital goods at zero customs duty, subject to fulfilling specific export obligations. Eligibility includes manufacturers, exporters, and recognized service providers.
Certificate of Origin for IEC Code License Holders:
The Certificate of Origin (CO) is an essential document for international trade, certifying that products were obtained, produced, or manufactured in a particular country. IEC Code License holders can apply for two types of CO:
- Non-preferential Certificate of Origin: Indicates that the goods do not qualify for preferential tariff treatment.
- Preferential Certificate of Origin: Issued for goods eligible for lower tariffs under regional trade agreements.