Everyone wants to expand their firm beyond the confines of the home market in this era of fierce competition. However, doing international business takes a lot of analysis and understanding. As a businessman, you can learn the details from import and export courses. Before going global, you must adhere to a number of regulations and rules, obtain various registrations, and obtain licences. When considering importing or exporting from India, one of the requirements is an IEC (Import Export Code) licence. It also goes by the name Importer-Exporter Code.
Anyone wishing to begin their import/export firm in the nation must obtain an IEC (Import Export Code). It is released by DGFT (Director General of Foreign Trade). The 10-digit IEC code is valid for all times. Without the Import Export Code, merchants who are primarily importers are unable to import products, while merchants who are primarily exporters are unable to receive benefits from DGFT for the export plan, etc.
Steps Involved in IEC (Import/Export Code) Registration
- Go to the DGFT website.
- Click on the ‘Services’ section placed on the homepage.
- Select the ‘IEC Profile Management’ option from the drop-down list.
- Click on ‘Apply for IEC’ option.
- Next is the ‘Register’ option where you have to enter the necessary details
- Get the OTP
- Enter the OTP and click on the ‘Register’ button.
- Upon successful validation of the OTP, you will get a notification with a temporary password that can be changed from the DGFT website.
- After registering on the DGFT website, use the login credentials to enter.
- Click on the ‘Apply for IEC’ option on the DGFT website.
- Fill out the application form (ANF 2A format), and upload the required documents. You will also have to pay the required fees and click on the ‘Submit and Generate IEC Certificate’ button.
- The IEC code will be generated by the DGFT.
- There is an option to get a printout of your certificate once the IEC code is generated
All about Import License
While the bulk of commodities can be imported without restriction, India’s Exim Policy (2007) forbids the import of some product categories and places restrictions on the import of others. In this case, it is crucial for the importer to have an import licence that has been given by the Government of India.
The Director General of Foreign Trade in India is responsible for granting import licences. Udyog Bhawan, New Delhi 110011, is the location of the DGFT Delhi office.
Import permits are renewable for a period of 24 months for capital items and 18 months for raw materials, components, consumables, and replacement parts.
A common import licence sample includes two copies of:
ForeignExchange Control Copy: To be used for opening a letter of credit or for sending money to an overseas vendor
Customs Copy: Used to give to customs officials so they can clear the goods. If there is no customs copy, the import will be flagged as being unlawful and subject to seizure and/or punishment.
The value of the imported items must be fully disclosed in an import declaration provided by the importer in the manner specified by the bill of entry. Import licences must be included with all import paperwork, such as ex-factory invoices, freight documentation, and insurance certificates. This makes it possible for customs to properly clear the paperwork for prompt imports. To document payment for imports, importers are required to include a copy of the L/C. Typically, the issuing bank verifies this paperwork.
Prior to clearance, not all consignments are inspected, and for known importers, inspections may be waived. An appointment with the clearing agent(s) under the present customs procedure helps prevent delays. In general, there are many paperwork requests and requirements, and there are frequently delays.