Situations in which IEC is Used?
When the importer has to clear his shipments from the customers then it is required by the customs authorities.
When money is imported by the person via banks then the banks are required with IEC.
Its applicable at the Custom port when an exporter has to send his shipments.
It is applicable by the bank when an exporter receives money I foreign currency directly into his bank.
It is important to understand that Import Export Code is compulsory for people or companies who want to grow their business in terms of International. IEC or Importer Exporter Code is issued by the office of Director-General of Foreign Trade (GGFT), ministry of Commerce for import -export businesses in India. Custom Authorities are curious about IEC of the company while clearing the consignment. Thus, if you want to growth your business internationally and earn profits via that then IEC registration is mandatory for your company.
There are a number of benefits applicable if you apply IEC. For example, import/ export from DGFT, Export Promotion Council, Customs etc on the accordance of their IEC registration. You do not have to fill any returns. Once you are allotted with it there is no Use to go on with any type of processes for sustaining validity. Even with export transactions, there isn’t any requirement for filling returns with DGFT.
It is very convenient to obtain IEC code from the DGFT within a time period of 10-15 days after submitting the application. Also, there is no need to provide any proof of any export or import for getting IEC code. There is no requirement for renewal as IEC is applicable for lifetime of an entity. After you obtain it you can use it with every export and import transactions.
Although if you are a part of Induvial Company which is also called as Proprietorship or if you have Partnership based company ten it is not compulsory for you to register before applying for IEC. In other cases, like LLC, Private Limited Company, Public Limited Company or any other legal entity you must register before applying IEC.Please ensure that you have a PAN number allotted to the applicant or to the company and a current account before applying for IEC.
Other than we have provided a short list of all the documents required while applying for Importer Exporter Code. Please make sure to go through it to avoid any hassles.
Documents Required for Import Export Code (IEC):
Personal PAN card or Company PAN card
Copy of a cancelled cheque from the business’ current account