An IEC is necessary for Import or Export of goods. The first requirement before you start an Import or Export business in India is to obtain an IEC Code is unique 10 Digit code issued by DGFT – Director General of Foreign Trade, Ministry of Commerce, Government of India.
The PAN based IEC Registration Certificate generated online (on STP mode), by following the beneath six steps:
BENEFITS OF IEC REGISTRATION :
1. It is the primary proof for a firm as an Importer/ Exporter in India.
2. It is submitted to obtain various benefits in respect of export and import from customs, DGFT, Export Promotion Council etc.
3. It acts as a license for Importing and Exporting of goods.
4. Through IEC number, Goods are cleared from the custom authorities easily.
5. IEC reduces the transport of illegal export.
6. IEC not required for personal use.
7. No Annual Renewal Fee.
8. No Annual/Quarterly Compliance after obtaining registration.
Cases where Export Import Code (EIC) is not mandatory
According to the latest circular issued by the government, IEC is not mandatory for all traders who are registered under GST. In all such cases, the PAN of the trader shall be construed as new IEC code for the purpose of import and export.
Import Export Code (IEC) isn’t required to be taken in case the goods exported or imported is for personal purposes and isn’t used for any commercial purpose.
Export and Import done by the Government of India Departments and Ministries, Notified Charitable institutions need not require getting Import Export Code.
If you are looking to expand your market and go beyond country borders and export/import, reach out to our experts and know all formalities you need to get through. You can avail all the services such as GST registration, business registration etc.