Import and Export code is a 10 digit unique number issued by the Directorate General of Foreign Trade (DGFT) to a business entity for import and export in India. The Import and Export Code helps the business grow in the global market. To clear customs, the trader must ensure that the importing entity has IE code and GST registration before initiating import of goods.
If an importer does not have both IE code and GST Registration, the goods will be stuck at the port and will start incurring demurrage charges or could be destroyed.
Once issued the IE Code is valid throughout the existence of the entity and there is no need to renew the code.
Importance of Import Export Code
International Market Unlocks: As the IE Code is a requirement for the import and the export business they allow the products to reach the international market. IE code makes the entry of the Indian business in the international smoother and opens doors for growth and expansion.
Online Registration: The process to find the IE Code is completely online and hassle-free with little document submission.
Less Document Requirement: To obtain IE Code in India very few documents are required. Here is the list of mandatory documents that are required for obtaining the Import Export Code.
- PAN of the applicant
- Canceled Cheque
- Passport size photo of the applicant
- Address proof of the applicant
Lifetime Validity: IE Code is a lifetime registration that is valid as long as the business is in existence. Hence, there are no issues with updating, filing, and renewing Import Export Code registration. The IE registration is valid till the business is in existence or the registration is not revoked or surrendered.
Reduces Illegal Goods Transportation: The most basic requirement for the Import-Export code is that you need to provide authentic information. Without providing proper information IE code cannot be obtained. This criterion makes transportation of illegal goods impossible.
Benefits of the Schemes: IE code has huge benefits for both importers and exporters. The registered business entities will be able to avail the benefits in form of the subsidies from the Customs, Export Promotion Council or other authorities. With LUT filing under GST, the exporters can make exports without paying the taxes. In case the exports are made with payment of tax the exporter can claim the refunds of the paid tax amount.
Compliance: Unlike other tax registration the person carrying import or export does not require to fulfill any specific compliance requirement such as the annual filing or the return filings.