Is there any tax on the import-export code?
Import Export Codes are very important as well as mandatory for importers at the time when shipments get cleared from the customs as well as when funds are sent overseas. Any type of business that likes to start its import or export business in India must require an Import Export Code (IEC).Without having an IEC no export, as well as import, must be made by any person. It is not a hard process but an easy process to obtain IEC Code from the DGFT within a time span of 10-15 days after the submission of the application. After the IEC Code is obtained, the code is used for the purpose of import as well as export. The validity of the IEC Code remains for its lifetime unless and until one’s canceled it.
An Importer Exporter Code is mandatory for the export as well as import of goods. IEC Code is necessary for those who wants to start their import/export business. The IEC Code is issued by the DGFT and it is a 10-digit code that has validity for lifetime. The IEC Code is compulsory only for the purpose of commercial and business.
The Procedure to apply IEC Registration are as follows:
- One should fill the online application form.
- Should upload the required documents.
- Must make an online payment.
- Then, the IEC expert will call the applicant to process his/her application.
- Finally, receive his/her certificate via mail.
The following documents needed for Import Export Code Registration are as follows:
- A copy of the company’s or firm’s or Proprietor’s PAN Card.
- A copy of the passport/ Aadhar Card/ Voter’s ID of the applicant.
- A canceled cheque copies of the current bank account of the firm or company or proprietor.
- A copy of the premise’s electricity bill or agreement of the rent.
The benefits of the Import Export Code are as follows:
- Business Expansion.
- IEC does not need the filling of any returns.
- Through the IEC registration, the companies could get several benefits from the DGFT, Export Promotion Council etc.
- IEC Code is very easy to obtain from the DGFT within a time span of 10-15 days after the application get submitted.
- IEC Code is valid for a lifetime and no renewal is required.
- IEC Code is important because it reduces manufacturing costs.
According, to the recent circular issued by the Indian Government it is said that an Import Export Code is not mandatory for traders having GST Registration. If a trader is registered under the GST his/her PAN will be used as his/her new Import Export Code for the purpose of import and export.