Import Export Code (IE Code) Registration
Import Export Code (IE Code) registration must be obtained by all entities involved in the import of export of goods and services.
Importer Exporter Code
Import Export (IE) Code is a registration required for persons importing or exporting goods and services from India. IE Code is issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India. IE Code application must be made to the Directorate General of Foreign Trade along with the necessary supporting documents. Once, the application is submitted, DGFT will issue the IE Code for the entity in 15 – 20 working days or less.
Validity of IE Code
IE Code registration is permanent registration which is valid for a lifetime. Hence, there will be no hassles for updating, filing and renewal of IE Code registration. It is valid until the business exists or the registration is revoked or surrendered. Further, unlike tax registrations like GST registration or PF registration, the importer or exporter does not require to file any filings or follow any other compliance requirement like annual filing.
As IE code registration is one-time and requires no additional compliance, it is recommended for all companies and LLPs to obtain IE code after incorporation.
IE Code Exemption
An Import Export Code is required for import of any type of goods by a business. However, the following category of persons are exempted from obtaining an IE Code:
- Importer and export by central Government or agencies or undertakings for defence purpose or other specified lists under Foreign Trade (exemption from the application of Rules in certain cases) Order, 1993.
- Import or Export of Goods for personal use.
Applying for IE Code
Para 2.08 of the Handbook of Procedure contains provisions relating to the application for IE Code. Vide public notice no. 27/2015-2020 dated 8th August 2018, the said para under-went an amended and the provisions of the amended para as applicable with regard to the application for IEC is provided hereunder –
- Exporters/importers shall file an online application in form ANF 2A.
- The applicant is required to submit only two documents; one is the address proof, and the other is the pre-printed cheque or bank certificate.
Address Proof
- Sale deed, in case the business premises is self-owned; or
- Rental/lease agreement in case the premise is rented/leased; or
- Latest electricity/landline/ mobile bill in the name of the applicant entity; or
- GST registration certificate; or
- In case of a proprietorship, the following proof is valid –
- Aadhar card;
- Voters ID;
- Passport.
It must be noted that the above documents in support of address proof need to be in the name of the firm, however, in case of a proprietorship, the address proof in favour of an individual (i.e. proprietor) is acceptable (Trade notice No. 39/2018-19 dated 12th December 2018).
Documents Required for IE Code Application
The following are the documents required for making an IE Code application in India.
| Proprietorship |
|
|---|---|
| Partnership firm |
|
| LLP or Private Limited Company or Section 8 Company |
|
| Society or Trust |
|
| HUF |
|
Bank Proof
It is has been clarified vide Trade Notice No. 39/2018-19 dated 12th December 2018 that a cheque without a pre-printed name of the account holder will not be acceptable. Further, the pre-printed cheque can be of savings account or current account. It is to be noted that the above-referred documents need to be uploaded online in digital format-GIF, JPEG and the document size should not exceed 5MB.
Import Export Code Issuance
Once the online application is submitted, along with appropriate fees and requisite documents, IEC will be auto-generated. Intimation regarding allotment of IEC will be sent to an applicant via SMS and E-mail along with a hyperlink through which the e-IEC can be downloaded and printed. The IE Code certificate will only be provided digitally and can be downloaded from the link provided. An e-IEC holder needs to update his profile immediately after issuance of e-IEC. Further, in case of any change to the details mentioned in the IEC or in any other case, the profile update needs to be done at least once in a year, as per para 2.15 of the Handbook of Procedure, 2015-2020.
Though the import-export code is auto-generated, the Regional Authority would conduct post-verification of the online IEC as per the guidelines. In case there is any wrong/incomplete information being furnished, the applicant would be liable for penal/criminal action and in such case, IEC would be either suspended or cancelled.
RCMC Registration
Persons having import-export code can apply for and obtain RCMC registration. Registration-Cum-Membership Certificate (RCMC) is a certificate that validates an exporter dealing with products registered with an agency/organisation that are authorised by the Indian Government. The certificate is issued for five years by the Export Promotional Councils or commodity board in India. An exporter desiring to obtain an RCMC has to declare his mainstream business in the application. This application would be submitted to the Export Promotion Council/ Commodity Board relating to that line of business.
Documents Required
Procedure for submitting IE code application along with the documents required for obtaining IE code. Any Business in India that imports or exports goods and/or services would be required to submit an IE code application with DGFT.
Application Process
Procedure and documents required for obtaining IE Code. ‘Import Export Code’, most popularly known as IE Code, is a 10 digit number issued by the Director General of Foreign Trade. ‘Import Export Code’ is the mandatory requirement for all the persons who are engaged in either importing and/or exporting goods or services from India.
RCMC Registration
Registration-Cum-Membership Certificate (RCMC) is a certificate that validates an exporter dealing with products registered with an agency / organization that are authorised by the Indian Government.
Shipping Bill Format
Exporters are required to file shipping bill for obtaining customs clearance. Recently, vide notification dated 25th March 2019, the shipping bill format has been amended.
Import Through Courier
The facility of Imports and Exports by courier mode is permitted to only those courier companies that are registered under Customs. These courier companies are called ‘Authorized Couriers’.
DGFT Overview
Directorate General of Foreign Trade (DGFT), formerly known as the Cheif Controller of Imports and Exports (CCI&E), is India’s official administrating body for imports and exports. It is an attached office of the Department of Ministry and Commerce and is headquartered in New Delhi.
Foreign Trade Policy
The Foreign Trade Policy (FTP) was introduced by the Government to grow the Indian export of goods and services, generating employment and increasing value addition in the country. The Government, Through the implementation of the policy, seeks to develop the manufacturing and service sectors.
Export Inspection Agency
Export Inspection Agency is an entity approved and administered by the Export inspection council for the purpose of inspecting the commodities that are meant to be exported, as well as to co-ordinate with the council in its various endeavors. List of all export inspection agency in India categorized by state and city.
Customs Duty
Self-assessment is one of the pivotal clearence methods which was brought in by customs authorities to ease import procedures and expedite its clearence. Self-assessment formalities and procedures are applicable in large customs base locations.
What is IE Code?
Why is IE Code required?
All importers must mention their IE Code while clearing customs when their goods arrive in India. All exporters must mention their IE Code while exporting their goods from India. Additionally, now RBI requests person importing or exporting services to also mention IE Code in foreign remittances in bank account. Therefore, IE Code is required for anyone involved in import or export in India.
Is there a tax levied based on IE Code?
No. IE Code is not a tax registration. So no tax is levied based on IE Code during import or export of goods or services. However, customs duty maybe levied.
Who must obtain IE Code registration?
Any person who proposes to import or export goods and services from or to India must obtain IE Code.
Can individuals obtain IE Code?
Yes, individuals acting as Proprietors of a business can obtain IE Code Registration.
What are the documents required for IE Code registration?
To obtain IE Code registration, a copy of PAN Card, proof of address of business and constitution of the business [Partnership deed, Incorporation Certificate, etc.,] and a letter from the banker is required.
How long does it take to obtain IE Code registration?
IE Code Registration can be obtained from the DGFT in 10-15 working days after submission of all required documents and application.
What is the penalty for not having IE Code?
IE Code is not a mandatory registration, only importers and exporters of goods or services must have IE Code. Therefore, there is no penalty for not having IE Code; however, import / export will not be possible without an IE Code.
Do I have to file any returns for IE Code?
No. Returns need NOT be filed for IE Code.
How long is the IE Code valid for?
IE Code is valid for life-time of the entity and renewal is also not necessary.
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