A person can unlock the doors to worldwide business opportunities by registering for an Import-Export Code (IEC). The increase in globalization has created enormous opportunities for cross-trade. Every person conducting business that involves imports or exports must register with the IEC. One of the fundamental prerequisites for conducting business internationally is having an import and export code (IEC), which applicants must receive before engaging in any transactions. IEC provides several benefits because it is the finest choice for businesspeople looking to open up prospects in the global market. It not only assists in opening up the global market but also accelerates corporate growth. We will explain the benefits of of obtaining IEC Registration in India in this blog post.

IEC Registration in India

A vital company identification number required for exporting from or importing into India is the Importer-Exporter Code (IEC). Unless expressly excluded, no person may export or import without first obtaining an IEC. 

The Directorate General of Foreign Trade (DGFT) issues the entity a 10-digit unique code after the IEC registration in India process is completed.

Example of IEC:- IEC registration is required if you want to import a mobile phone from China and sell it in India or export clothing from India to any other country.

Why is obtaining IEC Registration important?

Following are some of the points, which reflect the reason behind the need for the registration of the Importer-Exporter Code (IEC) in India:-

• Importers and exporters must submit an application for IEC registration in order to import and export goods and services.
• For all businesses engaged in the import and export of goods and services, the government has developed the concept of the Import-Export Code.
• The purpose of offering the IEC code is to use it to monitor and record all of the company’s operations when conducting international business (10-digit Number).

Benefits of obtaining IEC Registration

Below mentioned points describe the significance of registering the Importer-Exporter Code (IEC) in a well-disposed manner:-

World Market Coverage

• As previously said, the main prerequisite for the import of goods into and the export of certain services from India is what enables companies to take advantage of opportunities in the global marketplace.
• It broadens the company’s market reach and hence creates opportunities for development and growth.

Digital Enrollment

• Through its shared site, obtaining IEC is a fully online process.
• An abridged set of supporting documents is linked to the online IEC registration application to reduce complications.

Simplify Documents

1. Any firm or individual can acquire the Import-Export Code.
2. The necessary paperwork for the Import Export Code Registration is listed below.
   • Application’s PAN Card
   • Applicants’ photo, size of a passport
   • Returned Check
   • Address verification for the Company

Using PAN IDs for Registration

• The Permanent Account Number of the business entity serves as the basis for providing the Code.
• As a result, a single business organization may only need to register once.
• Registration is not necessary based on the place of operation.
• The registration is canceled or given up as soon as the business is dissolved.

Lifelong Applicability

• IEC registration is a lifelong registration that is permanent. As a result, updating, filing, and renewing the IEC registration won’t be difficult.
• It is valid as long as the business is still operating or the registration is not canceled or given up.

Advantages of Programs

• The IEC code offers significant advantages to both exporters and importers.
• The registered business enterprises would be eligible for any benefits announced by Customs, the Export Promotion Council, or other agencies in the form of subsidies or other ways.
• The exporters can make exports without paying taxes after filing a LUT under GST^[1].
• If taxes were paid for the exports, the exporter may be entitled to a refund of those taxes.

Not Complying

• In contrast to other tax registrations, importers and exporters are not subject to any particular compliance obligations, such as annual files or return filings.
• After registration, there is no longer a requirement to follow the code.

No Yearly Upkeep

• No annual operating fees must be paid after getting this code because there isn’t compliance listed.
• Registration filing or renewal is not necessary for any Financial Year or other period.

Lawfully robust

• The authorization for importing and exporting products and services for commercial purposes is the code.
• Cross-border transactions are made simple and legal thanks to this important legal permission.

Decreases the danger of Illicit Transporting

• IEC aids in the eradication of illegal imports, exports, and transportation.
• The centralized registration makes it easier for the officials to monitor and manage the transactions carried out as part of cross-border business.
• The responsibility for illegal or restricted transactions is fairly distributed.

Conclusion

Before beginning import or export activity, an importer-exporter code must be obtained. The items or specified services cannot be imported into or exported from India without this registration. A specific category of registration is required by law, thus the applicant who engages in exports must also register under GST. Given that IEC registration is mandatory to be obtained, it cannot be disregarded by the entity that is engaged in such business activities of import and export. A legal education company called BizAdvisors.io helps people evaluate the key aspects relating to the benefits of acquiring an Importer-Exporter Code. If you need any additional information, please get in touch with our legal experts.

Read our article:Procedure to Obtain Print of Import Export Certificate