Coding For Foreign Trade…………..
John was in textile business and had the lion’s share of the domestic market (in India). However, not content with his current position, he wanted give the big boys on the world stage a run for their money! He started working towards setting up shops in Dubai and Seychelles and also entered into supply agreements with some of the major players in the retail segment. He then approached his friend who ran a logistics company to help manoeuvre around the logistical pitfalls. It was at this point that his friend asked him if he had obtained an Import-Export Code (IE Code). John was flummoxed….. never in his wildest dreams, did he think that in his efforts to become a global player, he would fall prey to the legal entrapment! John told his friend that he had not got such a code and asked him to explain the purpose of it as also the process of obtaining it.
His friend explained to him that the IE Code is a 10 digit number that is allotted to a person and must be obtained by a person before undertaking any import/export activity. Only one IEC can be obtained for one PAN. The application for IE code is to be filed online using Form ANF 2A along with requisite application fees. The documents that need to be uploaded along with ANF 2A are as follows:
1.) Entity which seeks to obtain IEC
- PAN of the entity (Individual’s PAN in case of Propreitorship)
- Address Proof of entity.
- CIN/LLPIN/Registration Certificate Number.
- Entity’s Bank Account Details.
2.) Partners , Directors , etc.
- PAN of all partners, directors, trustees, etc
- DIN/DPIN of directors/partners in case the entity is a company/LLP.
3.) Signatory applicant (Person signing the application on behalf of the entity)
- ID proof
- Digital signature (if available).
In case digital signature is not available, then a print-out of the form may be taken, manually filled and signed and then scanned and uploaded.
After the application is approved by the relevant authority, the applicant is notified by mail that an online copy of the IEC or e-IEC is available on the DGFT (Director General of Foreign Trade) website. The IEC once allotted will have a permanent validity until and unless it is surrendered by its holder or cancelled by the competent authority. An IEC, once issued, will cover all the branches/divisions/unites/factories of the applicant. Further, a copy of the IEC is to be endorsed to the concerned banker and the same should generally be done via e-mail.
After listening to this, John decided to go through with the application for IEC and all other compliance-related issues on a war footing so that he could kick-start his operations as soon as possible.