Business-License & Registration

IMPORT & EXPORT CODE & REGISTRATION: ABOUT: The companies are doing business globally crossing the boundary of the country. These companies have to follow rules and regulations of the D.G.F.T (Director General of Foreign Trade) Ministry of Commerce and Industries, Government of India. The D.G.F.T issues registration/ licenses of import and export companies, which is known as Import Export Code i.e IE code. Certain categories of importers and exporters are exempted from obtaining IE Code: • Ministries or Departments of Central or State Government. • Persons importing or exporting goods for personal use not connected with trade or manufacture or agriculture. • Persons importing or exporting goods from or to Nepal, Myanmar through Indo-Myanmar border areas and China, provided CIF value of a single consignment does not exceed Rs.25000. In the case of Nathula port, the applicable exemption ceiling is Rs.1 lakh. Exemption from obtaining IE code is not applicable in case of export of special chemicals, organisms, materials, equipment, and technologies listed in Appendix 3 of Schedule 2 of ITC HS. Requirement of IEC: IEC is required for various purposes, following are some key purposes where it is required: 1. Import and export – IEC is a prerequisite for import and export. 2. Shipment clearance – one needs to show IEC in order to succeed in shipment clearance. 3. Custom clearance-  The person importing the goods has to furnish IEC for successful custom clearance. 4. Payments in respect of import and export- An importer needs to furnish IEC while making payments, an exporter needs to furnish IEC while receiving payments. IEC is a 10-digit code that has lifetime validity. But Import and Export Code (‘IEC’) holders are mandated to update IEC online every year vide Notification No. 58/2015-2020 dated 12.02.2021. IEC is updated electronically every year during the April-June period. Even if there are no changes, it is to be confirmed online. IEC shall be deactivated in case of non-compliance. No separate Code is required for Import and export and the same IEC can be used for both. On the basis of IEC, companies or firms can benefit and subsidize their exports/ imports from DGFT, Customs, and export promotion council. Even individuals who are proprietors of a business can obtain IE Code in their name. It is not necessary to incorporate a business entity for obtaining IE Code. Documents Required for IE Code Application: • Individual’s or firms managing partner or company’s director/designated partner’s digital photograph of 3*3 • Individual’s or Firm’s or Company’s copy of PAN Card. • Individual’s voter id or Aadhar card or passport copy. • Copy of Rent Agreement or Electricity Bill Copy of the premise. • Individual’s or company’s or firm’s cancel cheque copies of current bank accounts. Import Export Code Registration Process: The complete registration process for obtaining an Import Export Code number is online. The steps are as follows: Step 1 : Application Preparation. Step 2: Application Processing Step 3 : IECode fee payment Step 4 : IE Code Issuance. ## There may be complex things that occur during the registration process which is a time-consuming and lengthy process. The legal language of these forms is complex in nature. The government Portal and its functionality are in itself quite challenging. The support of professionals and experts can save your precious business time. Our team of LAW COMPLIANCES, having expertise in all such kinds of matters, will resolve all problems pertaining to registration & compliances and will save your precious time and Money. Working Process: >Choose your Plan and Pay Securely. > Upload required document > An expert will be assigned to you for the procedure of submission of the application. > Our Expert will complete the process required for your work along with the necessary assistance over a call during business hours. BASIC PLAN: Assistance in obtaining IE Code registration for All Import And Export Activities. New Registration Service Fees: 2999/- including government Fees. Law Compliances can help you in obtaining of Registration/License of IE Code in 05-15 working days.** ** Time taken for Incorporation will depend on the submission of the relevant documents by the client and also approval from the CONCERNED Government authorities. FREQUENTLY ASKED QUESTIONS (FAQ): Q. Is it necessary to obtain an Import Export Code (IEC) for the Import of goods? Ans: It is necessary to obtain an IEC code for Import. However, certain categories of importers are exempted from obtaining Import Export Code. The details regarding the categories of importers exempted from obtaining IEC may be seen at Para 2.8 of Handbook of Procedure, Vol.-I on the DGFT website. Q. Is there a separate code required for Import and Export? Ans: No separate Code is required for Import and export and the same IEC can be used for both. Many people have the wrong idea that a separate IEC code is required, but it is not true. Only one registration is required which is mandatory for the import and export and the same IEC code can be used while importing as well as exporting. There are many benefits to obtaining IEC codes for businesses. Q. Is there a need to obtain an IEC code for import or export of goods for personal use? Ans: IEC code is not required for the import or export of goods for personal use. The Import Export Code is mandatory only for commercial purposes and business. One can import or export goods for personal use without any registration requirement. Q. What is a ‘Restricted Item’ and where are they listed? Ans: Those goods, import of which is permitted only with the Permission/ Licence/Authorisation or in accordance with the procedure prescribed in a Public notice/ Notification are termed as ‘Restricted’ items. The list of ‘Restricted’ items is available in the (ITC- HS) classification of import and export items and the same can be viewed under the download section in DGFT. Q. What is ITC (HS) Code? Ans: The ITC (HS) Code is known as Indian Trade Classification (Harmonised System) Code which was adopted in India for exporting importing operations. An 8 digit ITC (HS) Code is used by the Indian customs for the national trade requirements. Q. How to find HS code for a product? Ans: To know the HS code for a product, click on the ‘ITC (HS) based policy’ on the official website of DGFT. An ITC (HS) query form will get opened in a new window. Insert the product’s name in the description option o know the HS Code of the product. If, one is already aware of the HS code and wants to know the product, then enter the ITC (HS) code option to know the product. Q. Is there a need to file returns for IEC? Ans: The IEC code is required at the time of exporting or importing or receiving or paying payments. There is no need to file returns for IEC as there are no post-registration compliances. Q. What is Foreign Trade Law? Ans: India’s foreign trade legislation is controlled by the Foreign Trade (Development and Regulation) Act, 1992. Through this policy, the Indian government permits imports into India and encourages exports from India. Q. Why is the Import-Export business regulated by the Government? Ans: The government imposes restrictions on imports and exports for the following reasons: – Protect the lives of humans, animals, and plants. IPR protection. To maintain the artistic, historic, and archaeological value of national treasure. To conserve the exhaustible natural resources. To discourage and limit the trafficking of war-related items, weapons, and illegal drugs. Prevent the use of prison labor. Q. What are the conditions in which IEC code is not required? Ans: IEC Code is not required when: – The import and export is done by the government departments The import and export are done by certain notified charitable NGOs. Products for personal use are imported or exported. Q. Is IEC registration required despite having GST? Ans: It is necessary for every person who imports or exports to obtain IEC registration. It is necessary to register with the DGFT department even if the business is registered under GST. Q. Is IEC required by Service Exporters? Ans: IEC shall not be necessary except when the service provider is taking benefits under the Foreign Trade Policy. Q. What is the validity of IEC? Ans: IEC allotted to an applicant shall have permanent validity but it is mandatory to update the IEC annually so that the IEC is not deactivated. If the IEC is updated between the April-June period each year, no fee shall be charged for updating of IEC. Q. What happens if the IEC is not annually updated? Ans: In case of non-updating of IEC within the prescribed time, it will be de-activated. An IEC so de-activated may be activated, on its successful updating. This would however be without prejudice to any other action taken for violation of any other provisions of the FTP. Q. Is there any tax levied based on IE Code? Ans: IE Code is not a tax registration. However, certain customs duties may be levied depending on the product. Q. Does the Custom department use IEC? Ans: Yes, the IEC number is reflected in all customs documents related to exports and imports. Q. How to cancel IEC? Ans: IE code can be canceled by initiating a formal request to the DGFT online. On receipt of such intimation, the authorities will cancel it electronically. Q. Is company registration required to get IEC? Ans: No, there is no need for a customer to start a company to apply for IEC Certificate. Q. What is the Merchandise export from India (MIES) scheme? Ans: Under the MEIS Scheme, numerous rewards and incentives are provided to exporters. Such incentives are given to exporters at a prescribed rate that varies from product to product. ***