An Export Licence in India pertains to an Import Export Code issued by the Directorate General of Foreign Trade. IEC registration authorises exporters to legally send eligible goods out of the country. The IEC code is a ten-digit unique identifier that assists customs authorities in validating both the shipment and the exporters. It is a compulsory document, among other essential requirements, for exporting products from India. In this blog, we shall see what is export licence India.
Understanding Role of Export Licence India
The IEC Code, also known as the Export Licence India, is a distinctive ten-digit code designated for exporters of eligible goods. The Directorate General of Foreign Trade serving as the main regulatory body on shipping industry and so it possesses exclusive authority to issue this registration. The process involves submitting a formal application along with the requisite fees as per the established guidelines.
Advantages of IEC Registration (Export Licence) in India
Mentioned here are some advantages of Export Licence in India:
1. Market Expansion:
IEC registration is key facilitators for businesses seeking to expand into international markets. It opens up opportunities in cross-border trade, allowing businesses to tap into new markets and, consequently, enhance profitability.
2. Access to Government-Based Schemes:
Companies holding IEC registration gain access to government-based schemes that are geared towards fostering growth. This includes initiatives aimed at supporting and promoting exports. Institutions like the Export Promotion Council play a crucial role for empowering small hand exporters and contributing to the overall enhancement of the nation’s export sector.
3. Easy Processing and Lifelong Validity:
One of the notable benefits of IEC registration is its simplicity and efficiency in processing. Once obtained, the Import-Export Code comes with lifelong validity. Unlike other registrations that require periodic renewal, IEC provides a hassle-free and enduring authorisation for engaging in import and export activities.
These advantages highlight the strategic importance of IEC registration for businesses, offering not only market access but also the opportunity to leverage government support for sustainable growth in the global trade.
Documents Needed for Export Licence India Application
When applying for an Export Licence India, also known as the IEC Code, several essential documents are required. These documents play a crucial role in the application process and ensure the legitimacy of the exporter. The key documents include:
1. Business Registration:
A proof of the business’s legal registration is a fundamental requirement for obtaining the Export Licence India.
2. Owner’s Identity and Business Address Proof:
Documentation validating the identity of the owner and providing proof of the business address is necessary to establish the authenticity of the application.
3. Premises Related Documents:
Documents related to the premises, such as sale deed, lease deed, or a No Objection Certificate from the property owner are essential for verifying the business location.
4. Bank Certificate:
A certificate from the bank is typically required, adding a financial dimension to the application process and ensuring the exporter’s financial credibility.
Procedure for Obtaining IEC Registration (Export Licence) from DGFT Portal
Mentioned below is the process for obtaining Export Licence India:
1. Access the DGFT Web Portal:
Visit the official web portal of the Directorate General of Foreign Trade.
2. Create an Account:
Initiate the account creation process by completing the OTP verification.
3. Login to the Portal:
Log in to the portal using the newly created account credentials.
4. Select IEC Registration Application:
Within the portal, navigate to the option specifically labelled “IEC Registration Application.”
5. Fill Out the E-Form:
Complete the electronic form by providing the following particulars:
· Company name and address
· Owner’s details
· Partners/Director details (in case of a company)
· PAN of the company and the applicant
· Contact details of the applicant
· Incorporation date of the entity
· Current bank account details
· DIN (Director Identification Number) for the company’s director(s)
6. Document Upload:
Upload the required documents as mentioned in the application form.
7. Payment Submission:
Proceed to the payment section to submit the necessary fees for the IEC registration.
8. Confirmation of Checklist:
Provide confirmation for the checklist displayed within the e-form, ensuring that all required details and documents are in order.
9. Preview and Print Application:
Review the completed application, preview it, and print a copy for your records.
10. Submit Application:
Submit the application through the portal after verifying all information.
11. Generate IEC Registration:
Upon successful submission, the portal will generate the IEC registration, confirming the completion of the process.
Exceptions to Mandatory Export Licence India
In certain cases, the requirement for IEC registration or an export licence in India is not mandatory. These exceptions are outlined in recent Government of India notifications:
1. GST Registered Traders:
According to a recent notification, traders who are registered under the Goods and Services Tax are exempt from the mandatory IEC registration. In such instances, the PAN of the trader serves as a substitute for the IEC registration.
2. Non-Commercial Export and Import Activities:
IEC registration is no longer obligatory for non-commercial export and import activities. Individuals or entities engaged in transactions of a non-commercial nature are exempt from the requirement.
3. Transactions by GOI and Notified Charitable Institutions:
The Government of India and charitable institutions that have been officially notified are also exempt from the mandatory IEC registration. This exemption applies to shipping transactions conducted by these entities for non-commercial purposes.
These exemptions signify a departure from the general requirement of IEC registration, providing flexibility for specific categories of traders and transactions within the regulatory framework.
Final Thoughts
Obtaining an Export Licence India is vital for businesses that is aiming to thrive in the global marketplace. This ten-digit code not only facilitates market expansion and increased profitability by unlocking cross-border opportunities but also grants access to government-backed growth-oriented schemes. The IEC’s streamlined processing and lifelong validity further contribute to its appeal, sparing businesses from the need for frequent renewals. In crossing the complexities of international trade, the Export Licence emerges as a foundational tool, empowering enterprises to engage in seamless and enduring import-export activities.
