Trading in India has always been an essential part of its development, growth, and enhancement. Whether you are an importer or an exporter, it brings great value to the country as well as to the businesses. For the past two years, the eCommerce business has witnessed a steep incline in global selling. Many companies are trying and have also accomplished expanding their business venture in foreign countries. Often the question is asked- How? How did you become a global seller? How can you export and import your products in a foreign marketplace? The answer to all these questions is- IEC.
What is IEC?
IEC stands for Import-Export Code. This code is a unique 10-digit number that is given to a global trader as an identification to be an authentic importer and exporter. This code is issued by the Directorate General of Foreign Trade (DGFT), an authority under which foreign trade takes place. If you do not have any identification approved by DGFT, then you are certainly not eligible to either export or import items from India. Another important fact to be noticed is that such codes are only given on the basis of the Permanent Account Number (PAN) of the business or the individual.
An individual can obtain IEC on their business or themselves. This code works as a primary key to uphold any exporting and importing beyond national boundaries. It enables individuals to avail all the facilities abide by the rules and regulations of DGFT.
IEC can be obtained by six simple steps. All you need to do is to follow the process set by step and get yourself your unique trading identification. First things first, before applying for an IEC, make sure that you have your necessary documents and identifications like PAN card, your business details; if you have any business partner, then you need to keep his/her details handy as well. Because at the time of registration, if you enter any details wrong and it does not match the documents and ID cards you have provided, you might end up not eligible for the application.
Apart from keeping the documents beside you, do not forget to cross-check every single detail that you have given on the website. Precaution is always better than cure. Beginning with the six step procedures:
Step 1: Log on to the DGFT website: As mentioned above, DGFT is the authority that issues the IEC. If you already have an account on the website, then all you need to do is log in through that account. And if you are a new user, then you need to register yourself with the tab ‘create a new account’ given on the website. Fill in the necessary details and click create an account.
After successfully log into the website through your account comes the second step.
Step 2: Fill in the PAN Card details: This step might not appear as different than the previous one, but apparently, this is one of the most crucial steps. While entering your PAN Card details along with your ‘email’ and ‘mobile number,’ you will be filling in all the personal details as per the PAN. Because in the verification process, your very entered data will be cross-checked with the PAN, and if any of the given information does not match, then your application might get denied. So to avoid any such circumstances, we highly recommend you to minutely and patiently register yourself on the website.
Step 3: Enter the business details: Step three covers all the necessary documentation and information of the business you are applying for. It includes all the details like date of inception, bank details, an industry of concern, etc. Enter only the details which are asked regarding your business. For instance, if your business does not have any other branches, then you can leave the branch details column empty.
Step 4: Enter the partner details: If your business is associated with any other organization or an individual, then you need to provide all the details of those in this step. And in case you are the sole owner of the business venture, then you can skip this step and move forward to the next one.
Step 5: Pay the fees and upload the document: After manually entering all the details of your business and your partner (if in case), you need to upload all the soft copies of the documents in the PDF or GIF format, as per the convenience. If the size of the file is already mentioned on the website, then do not exceed the size limit because if you do so, your documents will not get uploaded.
After uploading, there is a nominal fee of ₹500. This payment section is supported by almost every popular payment portal. Choose a suitable payment option and proceed further.
Step 6: Preview and Submit: The final but again a vital step, previewing and submitting the application. Even you have carefully entered all the information, and there is no harm in reviewing the application again and roughly going through all the details displayed on the screen. After feeling satisfied with the preview, you can now submit with application and finish the entire process.
Your IEC certificate will be generated in the coming 10-15 business days after submitting the application.
As already referred, IEC is the primary key for any individual to become a global seller. Without this code, no one is permitted to import or export across the boundaries. It not only acts as an identification for any business venture but also aids in expanding your organization’s reach on a larger scale. Once you have the IEC certificate, you can easily access, register and sell on international marketplaces via online exports programs like Amazon Global Selling. IEC provides you with the validation for a lifetime. There is no requirement for an individual to renew the code after a certain period. You can use the same code for the registered business. Along with several benefits, it eases cross-border financial transactions by approving the user as verified and eligible for any such transactions.
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