In the era of cut throat Competition, each and every person wants to expand his business beyond the domestic market. But, doing business internationally is not a cup of tea, before going internationally, you have to follow different laws and procedures, and obtain different license or registration. IEC license is one of such buzz word whenever you think of import or export from India.
IEC (Import Export Code) license is a code which is required by a person for exporting or importing goods. It is a 10 digit code which is issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India. It is an essential requirement for a businessman in India who is into a business of import and export.
Features of IEC:
-IEC is applied online.
-Only one IEC is issued against one PAN card.
-Once an IEC license is issued, it shall be valid forever.
-One IEC shall be valid for all branches/units/factories/division.
Who is required to obtain IEC?
Every importer or exporter is required to obtain IEC code.
Who is not required to obtain IEC?
-Person exporting or importing goods for personal use and not for activities related to business.
-Persons exporting or importing goods to/from Nepal or Myanmar through Indo-Myanmar border areas, a value of which does not exceed Rs.25,000/- in a single assignment.
-Ministries or departments of central government
Procedures to obtain IEC:
-File an application in form ANF2A online to get IEC number along with necessary documents.
-If authority finds your application complete, then IEC code or license can be issued to you within 1 week.
-PAN card of business entity.
-List of partners or directors in case of partnership firm/Limited Liability Partnership firm or Company respectively along with their residential address, ID proof, passport size photograph and PAN card.
-Articles of Association (“AOA”) and Memorandum of Association (“MOA”) in the case of company or LLP agreement in the case of LLP or Partnership Deed in the case of Partnership firm.
-Bank Account statement.
-Certificate from banker as per the format is given in Appendix 18A.