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Why do I Need A Bank Certificate To Get An IEC Code?

In an increasingly competitive market, a business dealer must expand his market presence to maintain his position in the market. Thus, sustainable growth can be achieved if the market starts to operate at the international level, which is subject to the Import and Export Code (IEC) registration. Therefore, businesses wishing to initiate import/export activities must obtain this unique 10-digit code from an approved body. The Directorate General of Foreign Trade under the Ministry of Commerce of the Government of India is authorized to issue IEC codes to applicants. This article will focus on why you need a bank certificate to get an IEC code.

What are the IEC requirements for business?

The main reasons companies need IEC are:

Import and Export

The main motive for obtaining the IEC license is to start with the import and export of goods and services. Importers or exporters must obtain an IEC number before trading goods and services worldwide. Therefore, an IEC license is required for import and export.

Shipment Clearance

It is important to submit the IEC for shipping clearance. Therefore, an IEC certificate is required to go through the shipping process, which is the final step in exporting goods.

Custom Clearance

The Customs Service is the only agency responsible for customs clearance. Customs clearance is the process of verifying the authenticity of imported goods that require an IEC certificate. Therefore, importers are required to provide an IEC when importing goods for successful customs clearance

Payments in Respect of Import and Export

Both importers and exporters are required to provide IEC certificates when making and receiving payments

What is the process to get IEC registration?

The following is the procedure for applying for an import-export code:

Create application form No. Aayaat Niryaat. 2A format.
Apply with the concerned Regional Office of the Director-General of Foreign Trade.
Collect your documents, such as proof of address, ID proof, etc. as well as bank details and certificates related to Aayaat Niryaat form 2A
After completing the application, attach the instrument and submit the form to the Director-General of Foreign Trade with a digital signature certificate.
Pay the fees applicable to the registration of import and export codes.
The government will send the import-export code as an electronic copy once your application is approved

What are the documents required for IEC Registration?

Applicants must upload copies of all scanned documents to be submitted. The file types accepted by the DGFT portal are GIF and PDF; other types of files cannot be uploaded. The following documents are mandatory for the IEC code registration process:

The following documents are mandatory for the IEC code registration process:

The following documents are required to register the IEC code:

Bank Certificate from the bank
A copy of a PAN card of an individual, business, or firm.
A copy of your personal voter ID or Aadhar card or passport.
Individuals or companies or firms cancel cheque copies of current bank accounts.
Building leases or copies of electricity bills of the premises.
A self-addressed envelope for sending IEC certificates by registered mail
Photographs, Passports, and PAN Cards may be uploaded as GIFs while the MoUs, sale deeds, Bank certificates, and registration certificates must necessarily be in PDF format. You can also upload Aadhaar cards, canceled checks, driving licenses and voter IDs in GIF or PDF format

Why do I need a bank certificate to get an IEC code?

This is required as per FEMA regulations. IEC makes it easy to do foreign remittances. Which requires a working current account.

This bank certificate proves that you are capable of doing foreign remittances.

For exporters, a bank account is required to get foreign funds and drawbacks from the government.

In both cases, if you are getting IEC without any bank account. You might receive or send funds not following the FEMA rules. So, the bank account is the basic step to prevent foreign exchange fraud.

What are the requirements for a bank certificate to receive an IEC code?

When applying for IEC code registration to issue or change an IEC number, the applicant must provide a bank certificate and supporting documents. Applicants must obtain a duly signed and sealed bank certificate from the banker. The purpose of these bank statements is to automatically provide important information about the applicant and bank details

The bank certificate format for obtaining an IEC certificate to be issued by DGFT can be found on the DGFT official website. Directorate General of Foreign Trade is an attached office of the Ministry of Commerce and Industry under the Government of India. DGFT headquartered is in Delhi and is responsible for regulating and facilitating India’s foreign trade. IEC bank certificate format (must be issued on official bank letterhead)

Format of Bank Certificate for Issuance of IEC

(To be issued on the Bank’s official letterhead)

Ref No. ………………………

To

……………………………………

(Name and address of the issuing authority)

Sir/ Madam

…………………………………………………………….. (Name of the bank or the branch) certify that M/s………………………………………………. (Account holder’s name and address) is/are maintaining a savings bank or current account (thick check if applicable) No. …………………… with us, and since ……………

Affix the applicant’s Photograph (passport size)

Note: The photograph as attested and affixed must be that of the account holder.

(Signature of the authority issuing)

(Above the rank of Manager)

Name…………………….

Designation ………

IFS Code of the bank issuing:

Date: ……………….

Place: ……………….

(Banks’ Stamp)

View Sample Report

INVEST MP Expression of Interest (EOI) For Inviting Online Tender…

Taxable Income Range IN RS.	Tax Rate Before Budget 2020 (Old Regime)	Tax Rate After Budget 2020(New Regime)
0- 2.5 Lakh	Exempted	Exempted
2.5- 5 Lakh	5%	5%
5- 7.5 Lakh	20%	10%
7.5-10 Lakh	20%	15%
10- 12.5 Lakh	30%	20%
12.5- 15 Lakh	30%	25%
Above 15 Lakh	30%	30%

Income	Tax In Old Regime	The Tax In Old Regime	Tax In New Regime	Difference
	(Without Deduction)	(With Deduction)
14 Lakh	242000	179400	169000	10400
15 Lakh	273000	210600	195000	15600

Exemption Category	Maximum Deduction Amount
Standard Deduction	5000
Investment Under Section 80 C	150000
Medical Insurance Premium	25000
NPS Deduction	50000
Saving Bank Interest	10000
Housing Loan Interest	200000
Total	485000

Category	New Tax Regime	Old Tax Regime
Income	1500000	1500000
Deductions	0	485000
Taxable Income	1500000	1015000
Income Tax	188000	117000
Cess	7500	4680
Tax Liability	195500	121680

Why do I Need A Bank Certificate To Get An IEC Code?

What are the IEC requirements for business?

Import and Export

Shipment Clearance

Custom Clearance

Payments in Respect of Import and Export

What is the process to get IEC registration?

What are the documents required for IEC Registration?

What are the requirements for a bank certificate to receive an IEC code?

Format of Bank Certificate for Issuance of IEC

What Does The Import-Export Code Mean? Code Mean?

Situations Where IEC is Required

Steps Involved in IEC (Import/Export Code) Registration

Documents required for IEC Registration (Import Export Code)

Benefits of IEC Registration

-Business Expansion

-Claim Multiple Benefits

-No Return Filing

-Easy Processing

-No Need For renewal / No update required

Cases Where Import-Export Code (IEC) is Not Mandatory

Is IEC mandatory?

What time to get the IEC code?

Can individuals obtain IEC?

Do you need a Digital Signature Certificate (DSC) to apply for IEC?

Do you need to update your IEC profile every year?

How do you print your IEC certificate?

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Step 2: Application For Name Approval.

Step 3: LLP Agreement.

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