Exploring Import Export Code (IEC) Fees and Cost Considerations

Defination of Import Export Code (IEC) and it’s importance for businesses engaged in international trade


An Import Export Code (IEC) is a mandatory 10-digit code issued by the Directorate General of Foreign Trade (DGFT) in various countries, such as India. It plays a crucial role in facilitating and regulating import and export activities for businesses. Serving as a unique identification number, the IEC enables smooth and streamlined international trade transactions.It is essential for customs clearance, availing export incentives, opening foreign bank accounts, and establishing credibility with suppliers and customers in the global market.


The steps involved in the registration process for an Import Export Code (IEC):-


Import Export Code Registration process typically involves the following steps:


a. Visit the official DGFT website or designated portal for IEC registration.

b. Fill the application form with accurate details and supporting documents.

c. Submit the application form electronically along with the necessary documents.

d. Pay the prescribed fee for IEC registration.

e. Once the application is reviewed and approved, the IEC certificate will be issued.


Cost to register an Import Export Code (IEC)and fees involved:-


The professional fees for IEC code Registration is ₹999. Hence, the Total cost of getting an IEC certificate will be ₹1499(₹500 + ₹999)


Documents required for the registration of an Import Export Code (IEC)


The documents required for the registration of an Import Export Code (IEC) may include:

  • Identity proof of the applicant (such as PAN card, passport, Aadhaar card, etc.)
  • Address proof of the applicant
  • Bank account details
  • Certificate of incorporation or partnership deed (in case of registered entities).
  • Cancelled cheque or bank certificate as proof of bank account.
  • Digital signature certificate (DSC) of the applicant.

Benefits of obtaining an Import Export Code for business

Obtaining an Import Export Code (IEC) offers several benefits to businesses engaged in import-export activities, including:

  1. Enables businesses to engage in international trade and expand their market reach.
  2. Facilitates smooth customs clearance for import and export consignments.
  3. The possession of an Import Export Code (IEC) enables businesses to take advantage of diverse export promotion schemes and incentives provided by the government. Additionally, it helps establish credibility and trust among global suppliers, buyers, and financial institutions. 
  4. Allows businesses to receive payments in foreign currency and operate foreign bank accounts.
  5. Enables businesses to participate in international trade fairs, exhibitions, and conferences.
  6. Simplifies compliance with various trade regulations and documentation requirements.

Renewal process for an Import Export Code (IEC):-

Renewal of IEC need to be folowed:

STEP 1- Register at the DGFT website. There, you will get the option “Apply for IEC”, click on that and choose your profession as an importer, exporter or both. 


STEP 2- After you have successfully registered you can now login into your DGFT account. Then, you have to link up your IEC certificate to this account. For this, you are required to authenticate either by Digital Signature Certificate or by your ADHAAR. 


STEP 3- Once you have linked and the authentication is also done, you can go forth and update any info on your IEC that needs to be updated. For updating, choose the “Update? Modify IEC” option. Here you can even update the form that has been pre-filled by the website. 


STEP 4- Once all three steps are done, it is time to review your changes for one last time. You will then use your Digital Signature Certificate (DSC) or ADHAAR and sign it, just like in step 2. 


STEP 5- Now that your Import and Export Code Certificate has been updated and also renewed it is ready to be printed out. The printing can be done by selecting the option “Print IEC” 


The consequences or penalties for not having an Import Export Code (IEC):-


The consequences for not having an Import Export Code (IEC) vary depending on the regulations and policies of the country in question. However, operating in international trade without a valid IEC can result in several negative consequences, including:


a. Inability to engage in import-export activities: Without an IEC, businesses may not be allowed to import or export goods legally.


b. Customs clearance issues: Customs authorities may reject shipments or impose delays if the required IEC is not provided.


c. Ineligibility for export incentives: Businesses may be unable to avail themselves of export promotion schemes, benefits, or incentives provided by the government.


d. Legal implications: Operating without a valid IEC can be a violation of trade regulations and may result in legal consequences or penalties, including fines or even criminal charges in some cases.


e. Restricted market access: Potential buyers or suppliers may be hesitant to engage in transactions with businesses lacking a valid IEC, as it serves as a crucial identification and credibility factor in international trade.


It is crucial for businesses involved in import-export activities to comply with the IEC registration requirements and maintain a valid IEC to avoid these potential consequences.

Comments

Post a Comment

Popular posts from this blog

Air Gun Ownership in India: Licensing Requirements and Regulations

Image
Introduction: Gun ownership and licensing regulations vary from country to country. In India, acquiring a gun license is a regulated process aimed at ensuring safety and accountability. This blog post will provide information on the process of obtaining a gun license in India, along with details on real gun prices, specifically focusing on pistol prices in Uttar Pradesh (UP). Additionally, we'll address whether a license is required for air guns in India. Gun License in India: To legally own a firearm in India, individuals must obtain a gun license issued by the respective state authorities. The license grants permission to possess and use a firearm within specific conditions outlined by the law. Real gun price with license in India Real gun price with license in India varis on brand make model etc and type of weapons. The initial prices (including taxes) for rifles, revolvers, and pistols generally vary as follows: Short Rifle generally starts at approx ₹ 55,000/- Long Rifle gener...
Read more

Factory License in Delhi: Steps to Legal Manufacturing Operations

Image
  What is a factory license, and why is it essential for operating a manufacturing unit? A factory license is a legal permit issued by the government or relevant authority that grants permission to operate a manufacturing unit or an industrial establishment. It ensures that the factory complies with various safety regulations, environmental standards, and labour laws. Having a factory license is essential for operating a manufacturing unit because: Legal Compliance: It ensures that the factory operates within the framework of local laws and regulations, promoting a sense of legitimacy and trustworthiness in the eyes of authorities, customers, and business partners. Safety and Security: Obtaining a factory license involves adhering to safety guidelines and measures to prevent accidents, mishaps, and occupational hazards, safeguarding both workers and the surrounding community. Environmental Responsibility: The license also includes compliance with environmental regulations, reducin...
Read more

DGFT Registration: Exploring the Benefits and Consequences

Image
What is DGFT? DGFT stands for Directorate General of Foreign Trade. It is an agency of the Government of India that is responsible for formulating and implementing policies related to foreign trade and export-import regulations. DGFT plays a crucial role in promoting India's international trade and managing trade-related matters. What is the process for obtaining a DGFT license for IEC registration? The process for obtaining a DGFT license for Importer-Exporter Code (IEC) registration involves the following steps: Complete the application form and gather the necessary documents, such as identity proof, address proof, and bank details. Submit the application along with the required documents to the DGFT regional office or online through the DGFT website. Pay the prescribed fees for IEC registration. After verification of the application and documents, the DGFT will issue the IEC registration certificate. Fees associated with DGFT registration for IEC are:- The fees associated with ...
Read more