As the global economy continues to grow, businesses of all sizes are looking to expand their operations beyond their local borders. If your business is involved in international trade, then obtaining an import export code (IEC) is essential. In this blog, we will discuss the reasons why your business needs an import export code registration.
What is an Import Export Code (IEC)?
An import export code (IEC) is a 10-digit unique code that is issued by the Directorate General of Foreign Trade (DGFT) to businesses that are involved in international trade. The code is used to track the import and export transactions of a business and is mandatory for businesses that engage in cross-border transactions.
Reasons why your business needs an Import Export Code Registration:
Legal Requirement:
Obtaining an import export code registration is a legal requirement for businesses that engage in international trade. Without an IEC, your business will not be able to import or export goods from or to any other country.
Expand Your Business:
Having an IEC can help your business expand into new markets and reach customers around the world. You can import goods from other countries to sell in your home market or export your products to other countries to increase your customer base.
Avail Benefits:
Businesses with an IEC can avail of several benefits offered by the government, such as tax exemptions, duty drawbacks, and other financial incentives. Having an IEC can also help you obtain various licenses and certifications required for international trade.
Better Credibility:
Having an IEC can enhance your business’s credibility and reputation in the international market. It shows that your business is registered with the government and has a legitimate presence in the international market.
Easy Banking:
An IEC is also required to open an international bank account, which is essential for businesses that engage in cross-border transactions. Having an international bank account makes it easier to receive payments from international customers and pay suppliers located in other countries.
How to Obtain an Import Export Code (IEC):
- Fill the Application:
To obtain an IEC, you need to fill an application form online or offline and submit it to the DGFT.
- Provide Required Documents:
You will need to provide the required documents, such as PAN card, bank account details, and address proof, along with the application form.
- Application Review:
Once you submit the application, the DGFT will review it, and if everything is in order, your IEC will be issued within 2-3 working days.
Conclusion:
An import export code registration is essential for businesses that engage in international trade. It not only makes it legal for your business to import and export goods but also provides several benefits and opportunities for expansion. Obtaining an IEC is a simple process and can be done easily through the online application process.
