The Ultimate Guide to Import-Export Business in India: Everything You Need to Know

In today’s fast-paced industrial world, finding a place for your business and thriving within the global marketplace is both challenging and essential. Before entering the import-export business, it is crucial to have a thorough understanding of the necessary registrations and the functioning of related organizations. This comprehensive guide will provide you with the pivotal data required to excel in the import-export business in India.

Importance of Import Export Code (IEC)

In the import-export business, obtaining an Import Export Code (IEC) is of utmost importance. It serves as a crucial step in customs clearance and ensures hassle-free business transactions. The following sub-sections will provide detailed insights into IEC.

 What is Import Export Code (IEC)?

The Import Export Code (IEC) is a 10-digit exclusive number that is mandatory for organizations entering the import-export business. It acts as an identification number, similar to an individual PAN card, required for customs clearance and international trade operations.

Authority of Issuance

The DGFT operating under the Ministry of Commerce and Industry of the Government of India is the authority of issuance and plays a pivotal role in promoting exports and opening international trade relations.

Advantages of IEC

• International Market Access: Having an IEC allows exporters to explore and benefit from the global market, expanding their business opportunities.
• Admittance to Government Schemes: Businesses with an IEC can enjoy various government schemes, including subsidies and incentives.
• Online Registration Process: The IEC can be obtained through a hassle-free online registration process, requiring minimal documentation.
• Lifetime Validity: Once obtained, the IEC is valid from the start of the business and does not require annual or return filings.
• Transparency in Transportation: The IEC ensures legal and transparent transportation of goods, eliminating illegal transactions.
• Zero Compliance: There is no need for annual filings or return filings when holding an IEC.

Indian Customs Electronic Gateway (ICEGATE)

ICEGATE is a crucial platform operated by the Central Board of Indirect Taxes and Customs (CBIC) for seamless electronic filings and trade-related services.

Overview of ICEGATE

ICEGATE serves as a single window for electronic filings and offers a wide range of services for import-export businesses. It facilitates documentation, verification, and tracking of import-export documents.

Key Features and Assistance Provided by ICEGATE

• IEC Status Checking: Businesses can check the status of their Import Export Code (IEC) through ICEGATE.
• Customs EDI Document Tracking: Tracking the progress of customs EDI documents becomes hassle-free with ICEGATE.
• Intellectual Property Rights (IPR) Online Registration: ICEGATE allows online registration for IPR-related matters.
• PAN Based Custom House Agent (CHA) Data: Access PAN-based data of Custom House Agents (CHAs) for seamless operations.
• Refund Status of Integrated Goods and Services Tax (IGST): Check the refund status of IGST through ICEGATE.
• EXIM Trade-Related Information: Obtain relevant trade-related information from ICEGATE.
• e-SANCHIT: Utilize e-SANCHIT, an online platform introduced for uploading supporting documents. ICEGATE users can add or delete documents through this feature.

Authorized Dealer Code (AD Code)

The Authorized Dealer (AD) Code is a unique 14-digit ID issued by the bank associated with the export business. Understanding AD Code is vital for custom clearance and smooth export practices.

Importance of AD Code

• Custom Clearance: AD Code is required for custom clearance by the Custom House Agent (CHA).
• Streamlined Procedures: AD Code simplifies customs procedures and facilitates the generation of shipping bills.
• Recent Changes: Updated regulations have made one AD Code sufficient for exporting goods from any port.

Government Departments/Organizations Serving Exporters

Several government departments and organizations actively support and assist exporters in their import-export operations.

• Export Promotion Councils (EPC)
• Federation of Indian Exports Organizations
• Marine Products Export Development Authority
• Indian Trade Portal
• The Export Inspection Council
• Federation Of Indian Chambers of Commerce and Industry
• The Gujarat Chamber of Commerce and Industry
• Export Import Bank of India
• Indian Trade Promotion Organization
• Index For Industrial Production
• Directorate General of Commercial Intelligence and Statistics
• Ministry Of Micro, Small & Medium Enterprises