FAQs ABOUT IEC CODE
Ever since the early days of Indian civilization, dating back thousands of years, there has been a steady flow of trade with the outside world.This trade happens to be something that has continued well into the modern era.Starting in 1947, when the country gained independence from the British, the country has started to gain an ever-more important presence in the international marketplace.Much of this growth took off starting in the 1970s w’hen the country started to open up its markets to the rest of the world. Everything began to really take off starting in 1991 w’hen the country opened up its economy, through policies which supported privatization, trade liberalization, etc.
Today, the country is playing an active role in the international marketplace, in terms of both imports and exports. India is one of the important trading partners for many countries, with trade deals allowing for newer markets to be accessed and so on.lt is estimated based on present market statistics that in the near future, India could become one of the biggest and perhaps the largest trading country on earth.The task of regulating foreign trade in India is managed by the Directorate General of Foreign Trade.Part of the larger Ministry of Commerce and Industry’, the governmental body is responsible for the formulation of trading policies, regulatory framework and issuance of licenses.
One such activity involves the issuance of the IE Code or the Import Export Code. It is the document which is required by businesses that wish to engage in import or export activities.Among both businesses and traders, there is a certain degree of confusion that exists regarding the IEC Code. Given in the below’list are some of the most importantly’ asked questions about the subject.
1. How long will it take for obtaining an IE code?
A. The total time for obtaining an IEC online or offline, is about 1 day after submitting the necessary documents and paying the fees.
In addition to this , it should be noted that in certain cases, the total time taken may vary as well.
2. Should you file any returns after obtaining an IE code?
A.There is no requirement to file any returns. The IE code is just a reference number when any import or export is engaged in.
3.Should y’ou renew’your IE code?
A. There is no need for one to renew’ an IE code after the initial IEC registration online or otherwise.The IEC code registration is permanent and will remain the same without expiring.
4. Can you obtain an IE code if you are not into foreign trade?
A. Yes, anyone can go for an import export code registration, regardless of whether or not they are into exports and imports. There is no restriction for doing so in any w’ay.
5. Do you require a company to register for an IE code?
A. No, there is no requirement for one to have a company to obtain an IEC code online or otherwise. Even private individuals can obtain the same, if they so desire.
6. Can you cancel your IE code online or otherwise?
A. Yes.The IE code can be cancelled if so desired by the holder of the same.
7.How do you cancel your IE code?
A. To cancel the IE code, one will need to request for the same with the DGFT. This can be done online. The cancellation is usually immediate.
8. Is there any penalty for not having an IE code for exports?
There is no penalty. But without an IE code, no exports or imports can take place, as they will not be allow’ed to clear customs.
9. How many IE codes do you need?
A. IE codes are issued on a per entity or applicant basis. In other words, each trader and business is issued a single IE code.
10. Can you get an IE code through a third party?
A.Yes, it is possible for one to get an IE code registered with the Directorate General of Foreign Trade. There are in fact several companies and individuals who cater to this demand.Do make sure to check their credentials and other details of the entity before giving them important documents.