The Importer Exporter Code, or IEC in short, is normally required by manufacturers and companies for international trade but with this new RBI ruling, the hundreds and thousands of freelancers, programmers, web designers and small companies who depend on PayPal for foreign payment will also have to apply for an IE code.
Regulatory settings for importers and exporters have significantly been simplified by government over last decade. Nowadays, the lone compulsory regulatory condition for anyone desiring to penetrate import/export business is the Import Export Code or the IEC. In case the import/export is of services or technology, IEC is needed in only in those cases where import/export is carried out in ‘specific services’ or technologies’, i.e. services or technologies in which foreign trade is constrained by the Indian Government as they affect the national security.
truinfo Accounting Solution operates as Import Export Code consultants in Delhi . An application to Regional Licensing Authority should be made along with the following documents:
- Two passport size photographs of the claimant properly attested by the banker of the applicants along with a certificate by them
- Certificate from the Banker of the applicant firm in the specified format
- Two copies of passport size photographs of the applicant duly attested by the Banker of the applicant.
- Self certified copy of Permanent Account Number (PAN) issued by Income Tax Authorities. A pronouncement that the partners/directors of the applicant firm are not allied as partner/director with any other company/firm which has been caution listed by the RBI. Where the claimant is so linked with a caution listed firm/company, the IEC number is assigned with a stipulation that the claimant can export only with the former consent of the RBI. Exporter's profile should be presented to the Regional Licensing Authority who will award an IEC number to the applicant.
Import Export Code is essential not only to manufacturers and companies involved in international trade but with the latest regulations it also bears relevance to the many freelancers, web designers, programmers, etc. who work at a very small scale and rely on third party services like PayPal for payment from their foreign clients.