How many days does it take to get an export license in India?

Exporting and importing helps to grow national economies and expands the global market. Every country is endowed with certain advantages in resources and skills. Imports are essential for businesses and consumers. Consumers also gain from locally produced products with imported components as well as other products that are imported into the country. Oftentimes, imported products deliver a better price or more choices to consumers, which helps to improve their standard of living.

Countries like to be net exporters rather than net importers. Importing is not necessarily a bad thing because it gives us access to important resources and products which are not otherwise available or at a cheaper price. The more a country exports, the more domestic economic activity is taking place. More exports results in more production, jobs and revenue. If a country is a net exporter, its gross domestic product increases, which is the total value of the finished goods and services it produces in a given period. In other words, net exports grow the wealth of a country.

What is an Export License?

If you are planning to commence an import-export business in India then the first thing you are required to obtain is the Import-Export License online. Registration plays a very vital role when you are moving ahead to start your own business of importing or exporting goods. Obtaining an Import export license becomes compulsory if it is related to services or the latest technologies.
Import Export Code (IEC) is a unique code of 10-digit number. IEC is issued by the Directorate General of Foreign Trade (DGFT) to any individual or company. It is the part of the Ministry of Commerce and Industry. Import-export license is very important f carry out the business in India smoothly. IEC has lifetime validity. Predominantly importers cannot import goods without the Import Export Code and similarly, the exporter cannot avail benefits from DGFT for the export scheme, etc. without IEC.

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How to apply for IEC Code?

You are required to follow the following steps to get the IEC Code:

1. To get import export code Online, you are required to visit http://dgft.gov.in

2. Click on the “IEC Online Application” option.

3. You will be asked to enter valid PAN details after entering them you will be directed to the IEC Main Menu

4. To create a new IEC Application, select the “Create” option from the menu. The system will generate and show a new “ECOM Reference No.

5. On clicking “OK” button you will be directed to the “IEC Master” Screen for updating of your details.

6. After you fill the form, upload the required documents and move towards the payment section

7. Click on the NEFT button to make the online payment.

8. Fill the IEC Fee amount (RS- 500). After selecting the bank and filling the amount, click on OK to submit it.

9. After the payment has been done, Bank will generate a BID number which can be used for future reference with the bank.

10. The status message will be displayed on the screen informing whether the transaction was successful or not.

11. Once all the documents are submitted properly, they will verify once again with the help of the digital signature and the applicant’s/ sender’s identity. Once the verification is successful the Director-General of Foreign Trade (DGFT), Government of India issues the Importer Exporter Code (IEC) against the name of the applicant and his firm/ company.

The dispensation of IEC applications is assumed to be completed in two working days, which means you can get it in 5 days or a week at most.

Documents Required

1. Digital Photograph (3x3) of the Designated Partner/Director of the Company signing the application.

2. Copy of PAN card of the applicant entity.

3. Copy of Passport (first & last page)/Voter’s I-Card /UID (Aadhar Card) /Driving License/ PAN (any one of these) of the Managing Partner/Director signing the application.

4. Certificate of incorporation as issued by the ROC

5. Sale deed in case business office is self-owned; or Rental/Lease Agreement, in of case office is rented/ leased; or latest electricity Copy of the Trust Deed

6. Bank Certificate as per ANF 2A(I)/Cancelled Cheque bearing preprinted name of the Company/business

Why do you need an Import Export license? 

Import-export license is essential for Importing and Exporting goods. Illegal transportation of goods is not allowed under the laws of import and export code. It is impossible to obtain the import-export code without giving all information regarding the business practices. It also helps in reducing the illegal export of weapons and other products. 

1. Custom authorities give clearance to the goods only by checking the import-export code as it contains all information. 

2. Organizations can claim various advantages from the Customs, DGFT and Export Promotion Council imposed on import & export. 

3. An import-export license is needed for verification to transfer or send money abroad through banks.

Benefits of IEC Registration

1. Expansion of Business: IEC helps you in taking your services or product to the global market and grow your businesses.

2. Availing Several Benefits: The Companies could claim several benefits of their imports/ exports from the DGFT, Export Promotion Council, Customs, etc., based on their IEC registration.

3. No Filling of returns: IEC does not need to the file any returns. Once allotted, there isn’t any requirement to follow any sort of processes for sustaining its validity. Even for export transactions, there isn’t any requirement for filing any returns with DGFT.

4. Easy Processing: It is fairly easy to obtain IEC code from the DGFT within a period of 5 to 7 days after applying. There is no need to provide proof of any export or import for getting IEC code.

5. No renewal required: IEC code is effective for the lifetime of an entity and requires no renewal. After it is obtained, it could be used by an entity for all their export and import transactions.

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