A Quick History of Import-Export Code

Import Export Code, usually known as IEC, is the initial registration needed for companies that deal with Importing or exporting products and services from India. IEC can be issued through the Directorate General of Foreign Trade (DGFT). It is a passport that can be used for export and import business.

Critical Points of Import assignation of export code

What is the time that IEC is needed?

1. The import-Export code is mandatory for importing or exporting goods and services to India.
2. ·    Issue Authority: The IE Code was issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industries, and the Government of India.
3. ·  Annual Renewal is required: IE Code is not an annual process. Import Export Codes require yearly renewal.
4. · Returns Filling: No Returns Filling IE Code doesn't require return filling nor further procedure conformances.
5. · Custom & Banks Requirement:--IE Code requires you to provide a statement to banks or customs authorities to import and export goods and accept or make payments to or from international vendors.
6. ·         AD Code: Authorized Dealer Code needed to clear customs when exporting goods to countries other than India. It is available from the bank.

IEC CODE A LICENSE IS ESSENTIAL FOR EXPORT Provider?

The Import Export Code (IEC) license is an important identification number for businesses required for exports or imports from India. Companies cannot conduct any export or import without having the IEC Code Number issued from the DGFT.

Suppose you're dealing with the export or import of technology transfer or services. In that case, The IEC Code shall be required only if the service or technology provider seeks benefit under Foreign Trade Policy or is working on specific technology or services under Section 7 of Foreign Trade (Development & Regulation) Amendment Act 2010.

Import Export Code Exemption

• The following parties are eligible for the Import Export Code Exemption:
• 1.      Ministerial or state-level government ministries or departments.
• 2. Individuals who import or export items for personal use, which do not have any connection to manufacturing, trade, or agriculture
• 3. Individuals who import or export products from or export products from Nepal, Myanmar via Indo-Myanmar border zones or China if they can prove that the CIF amount of one shipment is not more than Rs.25000. The applicable exemption limit to Nathula port amounts to Rs.1 lakh.

REQUIREMENT OF DIGITAL SIGNATURE FOR IMPORT EXPORT CODE

Importers and Exporters can request Import Export Code Online. Therefore, the need to have a Digital Signature of the business owner-director or owner to apply for the Import Export Code arises. Digital Signatures [DSC] is the most popular method to apply online for the IEC Code application. The DGFT also offers a unique Digital Signature Certificate that it issues to companies that possess an IEC code to import and export. With this special DSC, applicants could save 50% on license fees.

E-Startup India can help arrange digital signatures [DSC] for the applicant

IEC REGISTRATION PROCESS

• 1    Upload the required documents and details to our website portal
• 2.      Select Package and Pay Online with a variety of payment methods available.
• 3.      Our expert will create the application as per the prescribed format to be compatible with IE Code.
• 4.      Upload the applicant's digital signature and upload the online application form before DGFT.
• 5.      DGFT officials will check and consider the application within a week.
• 6.      After successful verification, send the Import Export Code certificate over the email.

Documents required to import-export code

1. Passport Size Photograph.

2. PAN Card.

3. Bank Account Details.

4. Pre-Printed Cancel Cheque.

5. Certificate issued by Bank.

6. Address Documentation.

What is the export promotion capital goods (EPCG) scheme?

• The Export Promotion Capital Goods (EPCG) Scheme, as its name suggests, is a government scheme to increase exports.
• The EPCG Scheme allows the import of capital goods. It spares needed for pre-production, post-production, and production at no customs duty. It is subject to export obligations of six times the amount of duty saved on capital goods imported under the EPCG scheme. This obligation must be paid six years from the date of authorization.
• The producers, Exporters, and Merchant Exporters can benefit from the Scheme. The scheme is also available to a service provider recognized or certified by the government as a Common Service Provider (CSP).
• You can avail EPCG Scheme having Import Export Code by submitting an application provided in Appendix 10 A of the Handbook, along with the papers required therein, to the Director-General of Foreign Trade (DGFT) or the regional Licensing authorities, along with the relevant information/documents.
• The conditions and obligations of the EPCG Scheme are as follows EPCG Scheme's terms and obligations are as follows:
• Export obligations should be fulfilled by exporting products made or produced using capital goods imported as part of the scheme.
• Exports must be direct exports with the names of the person the importer. The importer can export through an unrelated third party, so provided that they're registered with the individual responsible for the importer. The license holder's name is listed as a reference on the Shipping Bill. If an exporter of a trader is the importer brand name must be mentioned in the Shipping Bill.
• The export proceeds will be paid back in the freely convertible currency.
• Exports are physical transactions. Deemed exports can also be considered a way to fulfill the obligation to export. However, the licensee isn't legally entitled to the benefits from considered exports.
• Export obligations exist in addition to the other export obligations, which are under the importer undertakes beyond the value of all exports for the same product carried out by him in the past three licensing periods. If an expSupposeter is able to achieve an export amount equal to 75 percent of the value of the production of the products that are exported in this scheme, then the. In that case,igation under this way is considered an element of the export, provided that the amount of the aggravated exports during the specified time frame is not less than the value of the contract.
• If an exporter's manufacturer has been granted permits to manufacture the identical export product under this scheme and an exemption from duty under the Exemption Scheme, the physical exports that are made in compliance with this Duty exemption Scheme shall also count towards fulfilling the obligation to export under this scheme.
• If the software of a computer is sold to another country, the requirement to sell computer programs is determined based on the policy; however, the need for exports to exceed and go over the average number of exports in the preceding three licensing years does not be applicable.

Certificate of origin for IEC code license holder

The Certificate of Origin (CO) is a vital International business document. A Certificate of Origin certifies that the goods part of an export shipment were sourced, manufactured, or manufactured within a particular country.

The Certificate of Origin confirms an item's "nationality" and acts as a declaration by the exporter that they have met the requirements of customs or trade laws.

Banks, customs and private companies, and importers all require COOs for various reasons. In addition, almost every country needs CoO for the clearance of businesses. Consequently, IEC Cod License holders must apply for a Certificate of Origin if they intend to export outside of India.

The Certificate of Origin is issued by the Indian Chamber of Commerce and the Trade Promotion Council of India. In addition, the Import Export Code License holders can obtain two kinds of Certificates of Origin.

"Non-preferential Certificate of Origin specifies means that goods being shipped or imported are not eligible for preference in tariffs, and the applicable costs are imposed on the items being shipped.

"Preferential Certificates of Origin are given to products eligible for special tariff treatment when it comes to settlement of tariffs. These COs assist in confirming the authenticity of products subjected to lower tax rates or allowances when exported to countries that offer these advantages. They are usually connected with Regional Trade Agreements.