7 Benefits Of Importer Exporter Code

In India, the import and export business has been running for decades, and it is very profitable, but there is high competition for strict laws. Before doing business in import and export, there are numerous rules and regulations that you have to follow. Indian export and import are now globally famous, and the demand for things is regularly rising. As the population increases, many new trades are loved, increasing demand for foreign trade practices. So the government made strict laws for import and export to avoid fraud, so traders must first register themselves. 

Are you thinking of starting a business in import and export? So you need an IEC that is Importer Exporter Code. You must have the question, what is ICE? Why is it important? Here you get all your answers; let's get started. 

What is IEC?

The Importer Exporter Code is a 10-digit code issued by the Directorate General of Foreign Trade (DGFT), Industries, Government of India, and Ministry of Commerce. Once you register, you get lifetime validity, but it is only for a person or company who has done that registration. 

Every international business needs IEC registration, as the goods supplied will be clear from customs by using the code. Without this code, no seller can export their goods internationally; if someone does it, it is illegal, and there are laws for that. The company can undoubtedly access a larger global market for its goods or service by registering its trade business.

What Are the Advantages of IEC registration? 

Here are the perks of ICE registration that you need to know:

#1 Score in the International Market: The first and foremost benefit of IEC is that it will allow you to introduce your product globally. If you are running your business or introducing your brand, this is the perfect option to expand the trade area. 

#2 Online Registration: This process is also accessible by online registration, making it easy and hassle-free for the traders to register. The government creates a common portal for registration. On that portal, you can find which document is necessary, and you have to attach it to the completion of registration. 

#3 Lesser Document Requirement:To complete the registration process, you need four documents that are 

• Pan card 
• Copy of any ID proof 
• Passport size photograph 
• A cancelled cheque

#4 Lesser Compliances: Once you register yourself, you don't need to file annual or monthly returns. The code has the added benefit of simplifying things for the registered firm or individual by eliminating the agony of compliance after registration. Additionally, annual maintenance fees are not required. After registration, it also decreases the chances of illegal transportation. The chances of being illegal can be reduced by appropriate supervision. Whenever any unlawful transportation happens, it can apportion by the officials with the records gathered by registration. 

#5 Permanent Registration: If your company or brand is registered as an importer or exporter once, this registration is valid for a lifetime, and renewal is not required. Now you know all the advantages of registration, you should register yourself before starting any business in the critical export. Let's see the main benefits of IEC ( Importer Exporter Code ). 

Benefits Of Importer Exporter Code

• Unter the Indian scheme from the service export, all the exporters who outsource services awarded by the incentive into a range of 3% to 5 %, computed on the net worth earned by foreign exchange. 

• The two schemes have been given by foreign trade policy for the export of merchandise and services that are: 

1. 1. The merchandise Export from India Scheme 
2. 2. Services Export from India Scheme 

The main objective of these schemes is to give better opportunities to compensate for infrastructure inefficiencies and other related costs for products and services that have a high potential for profit on the global market but were unable to do so because of externalities.

• When a registered exporter files a LUT under GST, the taxes are removed, and they can export their services and goods without paying taxes. 

• If the export is done under prepaid taxes, you can claim it back. 

• After registration, the importer and exporter are awarded various subsidies to encourage more traders to register and get their IEC numbers. 

• The primary reason for this is the overall income and returns that international trade offers the Indian economy, allowing it to remain competitive globally.

• The last and primary benefit of exporting is as Follows: 

Import 

When importing necessities like smartphones or car spare parts. The production cost was reduced, resulting in a reduced product sale price. Lower sales prices automatically increase the demand for products. Hence, it increases the product market in essential countries rather than in the host countries. 

Export

Exporters who engage in international trade strongly emphasise increasing the product's sales potential and developing their markets in the destination nations.

The Bottom Line

The marketplace is becoming more globally flexible every day. New offers and free-trade deals can ensure that trading internationally becomes easy and hassle-free. There are a lot of companies that are focusing either on the domestic market or the international market. But the new updates make it easier to trade globally, and many companies now choose to operate domestically and internationally. All this happens due to a simple registration process of obtaining Import export code. Suppose you are wondering about enhancing your business in the international market. Go and Get your IEC number.