Introduction, Benefits, and Importance of Importer Exporter License Code Registration In India
Are you bracing yourself to enter into the Import-Export business? Then get your Import-Export License or IEC (Importer-Exporter Code) and take your first step towards your goal. Finding it difficult to apply for the IEC? Let us get it done for you.
In our interconnected world, the exchange of goods and services knows no borders. If you’ve ever wondered how products from one corner of the globe end up on the shelves of your local store, the answer lies in the fascinating world of international trade. However, there’s a crucial step you need to take – obtaining the right licenses.
An Importer-Exporter Licence ( IEC Code) is a key business identification number and is mandatory when you import in India or export from India. No one is allowed to do any Import-Export business in India without an IEC License except the ones who fall under the specifically exempted category.
It is a 10-digit code with lifetime validity, and the Director-General of Foreign Trade (DGFT), Ministry of Commerce, issues it. As it is the most important thing you need to kick-start your import-export business, you must do it in the first place without delay. Our experts will help you get your IEC Licence so that you can focus on expanding your business.
Understanding Export-Import Licenses – An export-import license is like a passport for goods, permitting them to travel across international boundaries. Whether you’re a small business owner or an individual looking to engage in cross-border trade, getting the proper licenses is essential.
These licenses are essentially the go-ahead from your government to buy and sell goods on the global stage. Governments implement these regulations to ensure the safety, security, and fairness of global trade. A license helps authorities keep track of what’s coming in and going out, preventing illegal activities and protecting national interests.
Import Export Code (IEC) – No importing or exporting activities can be carried out by any business if it does not possess the Import and Export Code. The IEC is issued by the regional office of the Director General of Foreign Trade or DGFT and is used for the unique identification of import and export businesses by tax authorities like Customs and DGFT officers across India. Moreover, the IEC code is used by the DGFT to regulate the importing and exporting activities of Indian businesses and secure the financial health of the Indian economy.
With time, the number of businesses that want to break the barriers of local markets and venture into global markets is only increasing. However, carrying out a global business is not everyone’s cup of tea. In case you are a business owner who wishes to take your business into international waters, certain laws must be adhered to and certain procedures must be followed. Licensing and registration must also be done to carry out importing and exporting.
1. Market Expansion – When you get an import-export license, you will be able to reach any new markets you want to explore. In most cases, it would lead to an increase in income. For instance, if you are an Indian businessman who exports to the US where the value of a dollar is stronger than a rupee, you will be able to earn in dollars and lead a sophisticated lifestyle in India. Also, you can ask the people importing from you to spread word of mouth and increase your foreign customer base with ease.
2. No Return Filing – One of the biggest benefits of an import-export license is that you don’t need to file any returns. Once you get the license, you won’t need to follow standard processes to sustain its validity, which is usual with many other licenses. Also, you don’t need to file any returns with the DGFT even if you do several export transactions.
3. Benefit from Government Schemes – The Indian government has launched many schemes as per the Foreign Trade policy that promote exports and imports in India. When you have an import-export license, and you import or export regularly, you can benefit from various government schemes like Exports from India Schemes- Merchandise Exports from India Scheme (MEIS) and Service Exports from India Scheme (SEIS), Duty Exemption and Remission Scheme, Duty-free Import Authorization Scheme (DFIA), Duty Drawback of Customs/Central Excise Duty/Service Tax and many others.
4. No Annual Compliance – When you get an import-export license, it will be valid until the time your business exists. You don’t need to renew or refresh it. But, if you want to stop using it, you need to surrender it and inform the DGFT by submitting a written application.
5. Simple Processing – The process of applying for an import-export license is quite easy. You can complete the whole process in a short time. Businesses that are registered and those who haven’t registered can also apply for the license easily. Most businesses can also expect to get the code in 10 working days if they have done everything right. You must also remember that if you have registered yourself as per GST, there is no need for you to seek a separate LEC code. The GSTIN will be used as an identifier at the transaction level.
Obtaining an Importer Exporter Code (IEC) is not just a regulatory requirement; it serves as a powerful catalyst for businesses entering the global market. This mandatory code acts as a gateway, enabling businesses to reach the international market and elevate the quality of their operations.
IEC plays a dual role in fostering healthy business relationships and promoting global reach. It establishes standardized business practices, enhancing the credibility of the entity on the international stage. The unique 10-digit code, a distinctive feature of IEC, holds the advantage of lifetime validity, offering a perpetual ticket to international trade without the need for frequent renewals.
Beyond its administrative convenience, the IEC contributes significantly to curbing illegal activities. The stringent process of obtaining an IEC demands authentic information, acting as a deterrent to the transportation of illegal goods. This not only ensures compliance but also adds an extra layer of security to international trade transactions.
Businesses with IEC also enjoy a spectrum of benefits. They become eligible for perks from various entities, including DGFT customs and the Export Promotion Council. Additionally, companies can claim refunds on taxes paid during the export of goods, further sweetening the deal. In essence, IEC is not just a code; it’s a strategic tool that propels businesses into the global arena, ensuring longevity, credibility, and compliance in the world of international trade.
The Import Export Code is mandatory for those businesses that are willing to expand their business throughout the world. With the growth and development of the new industries, the import-export code helps the business to grow and form new changes to the requirements of the people. Because of the important features of the import-export code, this 10-digit code can be used by businesses to carry out their trade without any renewal of it, as it is valid for a lifetime. Once the business obtains IEC, it can be involved in the import and export of goods and services with no issues.
If anyone wants to start or looking for import- export license code for a new businesses we can provide the license and full documentation support. The Company registration services in India, including Partnership registration services in India, Proprietorship Registration Services In India, GST registration services in India or any other government-related services or registration process details our team of experts will guide you at every step. We are one of the best service providers in the registration of companies, taxation, loans, Income tax, GST services, returns, etc, and many more under one roof.