Import Export Code in India: Benefits, Procedures, and Regulations
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Navigating the world of international trade involves understanding crucial regulations, one of which is the Import Export Code (IEC) in India. This post will explore the importance of the IEC, how to apply for it, and the various regulations associated with it.
II. Benefits of Import Export Code
Obtaining an IEC code, issued by the Directorate General of Foreign Trade (DGFT), is a gateway to global markets, providing a range of benefits:
Global Market Access: IEC allows businesses to import and export goods, widening their reach.
- Government Scheme Eligibility: IEC code holders can avail of various government schemes and incentives.
- Simplified Customs Clearance: Possessing an IEC eases the customs clearance process, ensuring quicker delivery of goods.
III. Cost and Time required for IE code
The Import Export Registration is a completely online process. You just need the scanned copies of the documents mentioned and a Mobile Number linked with Aadhar.
IEC license can be obtained in a Day.
The Government fee for IEC code is Rs 500 and the Professional fee is Rs 999.
IV. Procedures for IEC Code Registration
To register for an IEC code, follow these steps:
- Prepare the Necessary Documents: Gather documents such as your PAN card, address proof, and bank certificate.
- Visit the DGFT Website: Go to the IEC section on the DGFT’s website.
- Complete the Online IEC Application: Fill in the required details and upload the necessary documents.
- Pay the Processing Fee: Submit the IEC code registration fee specified by the DGFT.
V. ICEGATE and the Role of AD Code
Indian Customs Electronic Gateway (ICEGATE) is a portal that provides e-filing services to the trade and cargo carriers and other clients of Customs Department (collectively called Trading Partner). One of the important features of ICEGATE is the registration and use of the Authorized Dealer Code (AD Code).
An AD Code is a 14-digit numerical code provided by the bank handling your foreign exchange transactions. It’s mandatory for businesses to register their AD code with every customs port where they are conducting import/export activities. This registration helps in smooth customs clearance of goods.
To register your AD code, you should submit a request on your bank’s letterhead along with the required KYC documents to the customs at the port. The process may vary slightly based on local customs procedures. For more details, you can visit the ICEGATE website.
The charges for ICEGATE registration and AD code is Rs 3000
VI. Regulations Involved in Import Export Code Registration
Import export code registration comes with several regulatory compliances, including:
- Goods and Services Tax (GST): IEC holders must adhere to GST regulations.
- Customs Duty: Businesses with an IEC must comply with customs duty regulations.
- Foreign Trade Policy: IEC holders must follow India’s Foreign Trade Policy, governing various aspects of international trade.
The DGFT IEC code is a critical aspect of conducting international trade in India. Understanding the role of ICEGATE and the AD Code is also essential. By ensuring you follow the procedures for IEC code registration, comply with regulations and utilize the benefits, businesses can ensure seamless operations in the global marketplace.
VIII. Frequently Asked Questions on Import Export Code.
An IEC code is valid for a lifetime and requires no renewal. However, any changes in the business should be updated with DGFT.
Yes an Individual can apply as an Proprietorship.
Yes, certain categories of importers and exporters are exempted from obtaining an IEC. For a complete list, please refer to the DGFT’s Handbook of Procedures.