Legal Requisites For Setting Import Export Business

Foreign trade istrade between the different countries of the world.It has three kinds: imports, exports and entrepot.

• Inflow of goods in a country is called import trade
• Outflow of goods from a country is called export trade
• Goods are imported for the purpose of being re-exported with or without some processing or repackaging operations which is called entrepot trade.

Foreign Trade is extremely necessary for optimum usage of abundantly available resources and to satisfy the requirement of the country. Foreign Trade also brings in quality products into the country and by exporting the superior good, the capital and money comes in. Foreign trade not only generates the employment but also raises the living standards.
 In a nutshell, foreign trade is essential to have economic development of the country.
With an aim to make India a significant partner in global trade by 2020, the Foreign Trade Policy 2015-20 provides a framework for increasing exports of goods and services as well as generation of employment and increasing value addition in the country.

What is the Import Export Code (IEC)?

IEC is Export Import Code required for the business of export or import of goods and services in India. It is a 10-digit identification number issued by the DGFT (Director General of Foreign Trade), an attached office of the Ministry of Commerce and Industry, headed by Director General of Foreign Trade. DGFT is responsible for implementing the Foreign Trade Policywith an aim to promote India’s exports and enhance the treasury.

• Commonly known as Export license in India, IEC is fairly easy to obtain. It is a completely online process and requires only basic documents and minimal fee.
• After application has been duly submitted, obtaining the license takes not more than 15-20 days.
• No hard copy shall be supplied to the applicant, instead a soft copy will be sent.
• PAN is essential for the application of IEC registration.
• IEC has lifetime validity and requires no renewal.
• After obtaining IEC, no further compliances, return filing or maintenance fee are required.
• In future if modifications are sought, they can be applied for through the same portal with the prescribed fee and additional documents.
• IEC will be granted only for the product category as applied for. Though, one can seek IEC for additional categories with an additional fee for each category.

 What is the Requirement for Filing an IEC?

1. One time Client browser settings, mentioned on the official site.
2. A valid PAN card available with the applicant or the applying entity
3. Valid Mobile Number and Email ID for the token code to be sent on both
4. Scanned copy of the documents to be uploaded in the required format of either gif/pdf
5. A suitable mode to make online payment of the fee

 What are The Steps of Filing The Application?

1. The prescribed format of application, ANF 2A form, is available on the website of DGFT. the required details may be filled according to the structure of the entity: Proprietorship, Partnership firm, Limited Liability Partnership, Private/ Public/Govt. Undertaking, Section 8 company, Registered Society/Trust, HUF,
   http://dgft.gov.in/exim/2000/iec_anf/ieconlnapplform.htm
2. Respective Regional Officer of DGFT has to be selected referring to the LIST OF REGIONAL AUTHORITIES AND THEIR JURISDICTION provided on the official site. The DGFT Regional Officer must chosen carefully and appropriately.
3. A prescribed fee has to be paid online through various options of the modes provided.
4. The required documents must be attached, which can only be in either GIF or PDF formats as mentioned. The documents must be attached carefully as any discrepancy may cause rejection of the application.
5. After reviewing the application for correctness, take a print, sign and submit its scanned copy on the site.
6. The status of IEC registration application may be tracked on the official site.
7. A computer generated certificate shall be provided to the applicant with all the details. The authenticity of the certificate may be verified by clicking on the link “View your IEC” on the DGFT’s website

 What Documents are Required for Registration?
In case of fresh e-IEC:

1. Digital Photograph of the Signatory Applicant (Proprietor, Managing Partner, Director of the Company, Karta or the Chief Executive of Registered Society, as the case may be)
2. Copy of PAN card
3. Bank Certificate (in ANF2(I) FORMAT on the official letter head of the Bank) or cancelled cheque bearing the applicant entities name

In case of any modification of IEC, additional documents are required like:

1. Digital Photograph of the Proprietor, Managing Partner, Designated Partner/Director of the Company, Secretary or Chief Executive of the Registered Society, Karta.
2. PAN card of the applicant entity
3. Passport (first & last page)/Voter’s I-Card/ Driving License/UID (Aadhar card), any of these, for the applying entity/ applicant
4. Sale deed in case business premise for a self-owned property; or Rental/Lease Agreement for a rented/ leased office; or latest electricity/ telephone bill
5. Certificate of incorporation as issued by the RoC, Partnership Deed, Registration Certificate of the Society, Copy of the Trust Deed as the case may be

 What is Registration CUM Membership Certificate (RCMC)?
It is issued by Export Promotion Councils/Commodity board/Development authority or other competent authority as prescribed in Foreign Trade Policy or HBP Vol1, for 5 years.
avail any benefits or concession under the current FTP, a firm has to apply for an authorization to import/export and has to furnish valid a Registration Cum Membership Certificate.
The current procedure for furnishing RCMC information is manual. IEC holder has to submit the RCMC certificate in physical form to concerned Regional authority.
Requisites for the RCM are:-

1. Necessary setup for the creation of RCMC data file.
2. Class III Digital Certificate for signing the file created above
3. A self-attested copy of the IEC issued by the licensing authority (DGFT) concerned.

A self-attested copy of the Permanent Account Number (PAN)

Read More: https://swarit-advisors.it.gg/IEC-Registration.htm