IEC number: If you want to start an import-export business in India, then you need to get this number first. When the Directorate General of Foreign Trade (DGFT) makes this number, it does so in an electronic form (e-IEC). It is part of the Ministry of Commerce of the Indian government, and the DGFT office falls under it.
IEC is a unique 10-digit alpha-numeric code that can be used for the rest of your life. It is given out based on the Permanent Account Number (PAN) of the business or person. The IEC Code Number must be given to anyone in India who wants to import or export anything unless they are specifically allowed to do so. Importers and exporters can’t use the DGFT IEC Code unless they get the code. If a person wants to apply for an IEC number, they can do so in the name of the company or in their own name.
Some of the things you can get if you become an IEC member:
- If you buy and sell products and services in the global market, you can grow your business and make more money.
- A person who has an IEC registration can get a lot of extra benefits from DGFT and other agencies, like the Customs department and the Export Promotion Council, because they have an IEC registration.
- You can get your IEC code registration in 10 to 15 days after you fill out the application and send it in. Do not show any proof that you exported or imported before getting the IEC code. You don’t need to do this.
- Returns aren’t required – IEC doesn’t need any returns to be filed. This is true even if you don’t have to file a return with the DGFT when you export.
- No need to keep the certificate up-to-date – The IEC certificate is valid for life, so you don’t need to keep it up-to-date. However, you have to keep it up to date every year.
- In order for the importer to get the goods out of the customs office, they need this code.
- To send money outside of India, the bank needs this code.
- In order for the exporter to send goods, this code must be given to the port by the exporter.
- When the exporter gets money in a different currency, the bank needs this code.
- Service exporters don’t need to have an IEC Code unless the service provider is getting a lot of money from the Foreign Trade Policy.
- Merchants who are registered for GST don’t have to be registered for it. In these cases, their PAN number will be used as the IEC code for both import and export.
- A single consignment worth no more than 25,000 can be exported or imported to or from Nepal without having to pay any fees.
- Getting goods into or out of Myanmar through the Indo-Myanmar border if the total value of a single package is up to 25,000.
This was in brief about IEC code. To know more about the Bill of Lading, click here.