To succeed in today’s cutthroat world, one must be able to think quickly. In order to grow and expand beyond its borders, every business must take several steps. Import-export codes are required for companies conducting business outside of their own borders.
Considering the increase in illegal imports into India, the government is taking steps in the application for Import Export Code Online to prevent this from happening again. To prevent the importation of unlawful items, enterprises that haven’t updated their IEC details since 2005 will have their IEC details deleted.
How does an Import Export Code work?
This ten-digit code is issued by the DGFT (Director General of Foreign Trade). There is no expiration date on the ten-digit code. An import-export business cannot operate without the IEC code.
As a result, you will not be able to register your import-export company to import or export items required by enterprises without the IEC code. Exporters are generally unable to access DGFT benefits, such as the export plan, etc., without an IEC, and importers are generally not able to import products without an IEC.
Import Export Code – Why is it Important?
- Any import-export operation must apply for an Import Export Code online. This document proves that you have the right to carry out specific trades outside of your country of residence. Raw commodities cannot be exported or imported for commercial purposes without the IEC.
- Any company that imports and exports goods rely on the IEC code. Any business involving imports and exports must have an IEC certificate. This allows for greater efficiency in the flow of commerce. In addition, it is required when customs authorities need it to clear merchandise during importation.
- In order to transmit funds when importing, the bank requires it.
- When exporting, it is also required.
- In order for the funds to be deposited immediately into an exporter’s account, an IEC code must be provided.
How to get the Import Export Code?
To obtain the IEC Code, a business cannot register without first completing five simple steps. Registration for an IEC Code involves five basic steps:
- Form Filling: You need to fill out an application based on your type of business and apply for an IEC Code.
- Consultation & Documentation: Upon completing a payment, an IEC Code registration specialist will contact the individual in order to work with them on arranging the important registration documents.
- Document Uploading: Once the papers have all been collected, a digital platform is created to process them.
- Application Review: After receiving the application and supporting documents, the authorities will review them and set up a review date.
- License Issued: Following a satisfactory evaluation and inspection by the authorities, the company will receive an IEC Code which they can use to conduct their import-export business.
Import Export Licenses can be essential for the growth of certain businesses engaged in import or export. In addition to bringing transparency to the matter, the regulation also assists in the regulation of goods and services imported and exported to the country. The businesses that export and import can keep track of their revenue as well as their progress.