Category Archives: IEC Registration

Role of GST Registration in Import export business

You must have heard about the GST (Goods and Services Tax). It was not easy for all to deal with the consequences of the introduction of the GST. Likewise, it affected import export business as well. Further in this blog we will discuss the role of GST registration in Import export license.

By virtue of GST implementation in India, there are following implications on imports:

  • Inter-state supply

If you import any goods and services from outside India, then it will be considered as Inter-state supply under model GST law. And according to this, it will attract Integrated Service Tax (IGST) along with BCD and other surcharges.

  • Importing services from outside of India

In accordance with the GST registration in India, the consumers are liable to pay the taxes, if the service provider resides outside India. It is similar to the reverse charge mechanism, in which the consumers have to pay taxes and file returns.

  • Transaction value based valuation principle

Transaction based valuation principal is similar to the current customs law for charging GST. Earlier the CVD (Countervailing Duty (CVD) is an additional import duty charged on imported goods.) was charged on the MRP valuation system, however if we look at the new GST regime, CVD is included in the IGST and will be charged on the transaction value.

  • Refund of duty under new online GST registration regime

Earlier there used to be a credit under “Import and Sale” model, while there is no such credit is available in the present GST.

  • Current Exemption Withdrawal

Currently, there are multiple exemption notifications on customs import tariff which are likely to be reviewed / withdrawn / converted into a refund mechanism. Therefore the structure of export-linked duty exemption schemes could exchange under the FTP. While the duty exemptions will get exemption from payment of BCD but not from the payment of IGST. This will change the viability of the key schemes under the FTP like EOU, STP, Advance authorization etc.

Source url – http://enterslice.over-blog.com/2019/01/role-of-gst-registration-in-import-export-business.html

What is an Import Export Code and who needs it?

This is a mandatory registration for all business entities in India involved in export and import of products and services. IEC Code is issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industries, it is a 10-digit number called the IEC Code that can be issued to a business entity as well as the owner or the proprietor of the business. The underlying importance of the IEC Code registration is that without it neither can import units import any goods nor can exporters export their products outside the country. The best thing about the code is that it has lifetime validity and does not require filing of any returns.

Why IEC Registration?

  1. In the absence of the IEC code, exporters and importers cannot carry out export-import functions.
  2. In order to send money abroad or receive money from overseas account, the entity must have IEC code.
  3. Similarly the code needs to be present on all custom related documents during the import export of goods.
  4. It has lifetime validity
  5. Business entities having IEC registration are entitled to certain export scheme benefits sponsored by the government, DGFT and Export Promotion councils.

IEC registration process

  1. The first step is to fill up the Aayaat Niryaat Form 2A for issue or modification of IEC Code at the regional office of DGFT. The details that need to be furnished by the applicant via this form are:-
  2. Name of the applicant
  3. Registered office address
  4. Telephone numbers
  5. Email id and website
  6. Full name and designation of the authorised signatory
  7. Personal details of the proprietor, partners, directors, kartas and trustees
  8. Nature of the business concern – whether a government undertaking or a public or private limited company, proprietorship or partnership or others.
  9. Type of Exporter- to choose from merchant or manufacture exporter, service provider, merchant cum manufacturer or others
  10. Bank account details of the entity or the individual
  11. PAN card details of the entity or the individual
  1. The next step is to collate the required documents that have to be filed along with the application form. The copies of the following documents need to be submitted:-
  2. PAN Card of the business unit or the individual
  3. Photo Identity proof of the individual and the applicant, in case of business entity. Copy of Aadhar card, voter id, passport, ration card etc.
  4. Certificate of incorporation or partnership deed of the firm.
  5. A cancelled copy of cheque bearing the name of the firm or the applicant and the account number.
  6. Address proof of the business is required. Ownership document in case of self-owned property and rental agreement in case of rented property and a copy of latest electricity or water bill along with it.
  7. The last step involves paying the requisite IEC Registration fee by demand draft in case of physical submission of forms.

IEC code can be obtained using the online method too. For IEC online registration, the IEC online application form needs to be filed in at the website of DGFT – https://web.archive.org/web/20180130123729/http://dgft.gov.in:80/. The required documents need to be scanned and attached in gif format. The copy of PAN, photograph of the applicant and the bank certificate in specified format from the applicant’s banker need to be scanned and uploaded along with the form.  The other forms that need to be uploaded are – the Board of Resolution, memorandum of association or article of association, partnership deed etc.

Source url – http://blogs.montevideo.com.uy/blognoticia_164671_1.html

What is Import Export Code and its Registration

It is a 10-digit unique code obtained from Directorate General of Foreign Trade (DGFT) under Ministry of Commerce and Industry, Government of India with a permanent validity for importing and exporting goods and services and thereby taking your business at a global level.

Who is required Import Export Code

In case of import:

  1. When the importer has to clear his shipment from the customs, the custom authorities require IE code
  2. When the importer deals with the bank for the payment of money, Banks require IE code

In case of export:

  1. When an exporter sends the shipment. It is required by the custom port
  2. When an exporter receives money in foreign currency in his bank account, it is required by the Banks

Who is Exempted from Obtaining IEC Registration

There are some categories defined by DGFT, which are exempted from taking this code.

  1. When the import/ export is done for the personal use and not for the commercial purpose.
  2. When the import/ export is done by the government department and notified charitable organizations.

Note: In case of import or export of services or technology IEC Registration is necessary only when the service or technology provider is taking some benefit granted under the foreign trade policy to them or is dealing with specified services or specified technologies.

Who Can Apply for IEC Registration

  1. Individuals
  2. Proprietorship firm
  3. Partnership firm
  4. LLP
  5. Company
  6. HUF
  7. Government undertaking
  8. Registered trust and society
  9. Other entity

Validity of Import Export Code

IE code once allotted is valid for ever and no requirement to renew.

Surrender of IEC

IEC holder has not an option when he is not interested in operating it, he can surrender the same by informing the authority.

On receipt of such intimation, the authority shall immediately cancel it.

Requirement for Obtaining IEC

  • PAN issued by Income Tax Authorities.
  • passport Size photograph of the applicant
  • Class 2 or class 3 Digital signature of the authorized person
  • Cancelled cheque/Bank certificate required.
  • If the applicant is NRI, RBI approval letter needs to be mandatorily attached.

PROCESS FOR OBATINING IE CODE

  1. Visit the website of DGFT and login by entering the PAN. After completion of the process of entering OTP sent to mobile and e-mail, fill up the application and upload the documents.
  2. After successfully filling of application attach DSC of the applicant and submit the same along with the fees prescribed by the government.
  3. Generally, IEC Certificate is issued within 2-3 business, if no discrepancy is found in the application.

CAN MODIFICATION OF IEC BE DONE?

Yes. An IE code allotted can be modified by making an application to the issuing authority

CHANGES IN IEC WITH THE INTRODUCTION OF GST

With the Implementation of GST, Government of India through DGFT, in its effort for ease of doing business in India and keeping the identity of person uniform, vide its notification dated 12th June 2017, notified that any person having GSTIN can import or export, into or from India, by declaring the GSTIN at the time of import or export.

Additionally, for the entities who are not registered under GST registration because of its threshold limit, may use their PAN as their IEC for which application should be made to DGFT for authorizing PAN of Applicant as IEC.

Further, for the existing IEC holders, necessary changes in the system are being carried out by DGFT so that their PAN becomes their IEC. So, IEC holders are supposed to quote their PAN for all the documentation done w.e.f. , 12th June 2017.

Source url – http://enterslice.aircus.com/what-is-import-export-code-and-its-registration

Expanding your business globally by importing and exporting goods and services?

Stuck with the compliances, permissions, license from the government?

There are various compliances for doing the same under different laws but herein this article we will discuss on import and export code registration i.e., obtaining IE Code

What is import export code?

It is a 10-digitunique code required to be obtained from Directorate General of Foreign Trade (DGFT) under Ministry of Commerce and Industry, Government of India with a permanent validity for taking your business at a global level.

WHO IS REQUIRED TO APPLY FOR IE CODE REGSITRATION?

In case of import:

  1. When the importer has to clear his shipment from the customs, the custom authorities require IE code
  2. When the importer deals with the bank for the payment of money, Banks require IE code

In case of export:

  1. When an exporter sends the shipment. It is required by the custom port
  2. When an exporter receives money in foreign currency in his bank account, it is required by the Banks

WHO IS EXEMPTED FROM OBTAINING IE CODE?

Persons / Organizations dealing in Import & Export would require to apply for Import Export Code (IEC) registration. But there are some categories defined by DGFT, which are exempted from taking this code.

  1. When the import/ export is done for the personal use and not for the commercial purpose.
  2. When the import/ export is done by the government department and notified charitable organizations.

Note: In case of import or export of services or technology IEC registration is necessary only when the service or technology provider is taking some benefit granted under the foreign trade policy to them or is dealing with specified services or specified technologies.

WHO IS REQUIRED IE CODE?

  1. Individuals
  2. Proprietorship firm
  3. Partnership firm
  4. LLP
  5. Company
  6. HUF
  7. Government undertaking
  8. Registered trust and society
  9. Other entity

DOCUMENTS REQUIRED FOR IEC REGISTRATION

  • PAN issued by Income Tax Authorities.
  • passport Size photograph of the applicant
  • Banker’s certificate in the specified format

PROCESS FOR IEC REGISTRATION

  1. For filing the application you need Class 2 or class 3 Digital signature of the authorized person
  2. Attachments with the application like PAN Card of applicant, passport Size photograph of the applicant and cancelled cheque/Bank certificate required. If the applicant is NRI, RBI approval letter needs to be mandatorily attached.
  3. Visit the website of DGFT and login by entering the PAN. After completion of the process of entering OTP sentto mobile and e-mail, fill up the application and upload the documents.
  4. After successfully filling of application attach DSC of the applicant and submit the same along with the fees prescribed by the government.
  5. Generally, IEC Certificate is issued within 2-3 business, if no discrepancy is found in the application.

CHANGES IN IEC WITH THE INTRODUCTION OF GST

With the Implementation of GST, Government of India through DGFT, in its effort for ease of doing business in India and keeping the identity of person uniform, vide its notification dated 12th June 2017, notified that any person having GSTIN can import or export, into or from India,by declaring the GSTIN at the time of import or export.

Additionally, for the entities who are not registered under GST because of its threshold limit, may use their PAN as their IECfor which application should be made to DGFT for authorizing PAN of Applicant as IEC.

Further, for the existing IEC holders, necessary changes in the system are being carried out by DGFT so that their PAN becomes their IEC. So, IEC holders are supposed to quote their PAN for all the documentation done w.e.f,12th June 2017.

Source url – http://entersliceindia.blogspot.com/2018/05/expanding-your-business-globally-by.html