A small and medium enterprise firm got export order from a foreign buyer but the company does not know anything about the nitty-gritty of export and even does not know how to get IEC code number. The company hired you as

CS Professional · International Business – Laws and Practices · PYQS · December 2018
A small and medium enterprise firm got export order from a foreign buyer but the company does not know anything about the nitty-gritty of export and even does not know how to get IEC code number. The company hired you as an export management consultant and asked you to help the company in getting the IEC code so that the company can fulfill the export order in time. How will you help the company in this regard?

Answer & Explanation:

Once all the research and analysis are done by the exporting organization, it has to get registered with the various government authorities. First and foremost is license for exports which is issued by DGFT. In this regard registration to IEC is important for export which is a unique 10 digits code issued by DGFT (Director General of Foreign Trade), Ministry of Commerce, Government of India to Indian Companies, business firms (Proprietorship/ Partnership/Company/ LLP/HUF/Trust). To import and export in India, IEC Code is mandatory. No entity shall make any Import or Export without IEC Code Number. If I have been selected as an export management consultant for getting an IEC Code to fulfill its export order on time. I would initiate to apply for IEC Code by following the guidelines to apply for IEC: (i) Mandatory Requirements to apply for IEC Code Number Application can be submitted only on DGFT Website electronically on after registering with ECOM Section by person/by Authorised Employee of the Company at the R & I counters in the office or it can be sent by post/courier. (ii) Processing of IEC Code Application The application can be submitted electronically by person at the office or it can be sent through Post/Courier. An acknowledgement in form of a receipt having File Number is generated on receipt of application. The file number is used for any correspondence/query regarding the IEC application submitted to the office. The application is then sent to IEC section where it is processed. If the application is found complete in all aspects (as per requirements prescribed) an IEC is generated, or else a deficiency letter stating the nature of deficiency is prepared and sent to the applicant. Replies are awaited in cases where deficiency letter is issued and after due compliance by the applicant the IEC is allotted. (iii) Issue and Dispatch of IEC Code IEC allotment letter is sent through post at the registered office mentioned by the applicant in the application. Similarly deficiency letters are sent to applicant by post. (iv) About IEC Application Status A new option to know the file number has been introduced for all exporters who are sending their application through Post / Courier. The applicant has to input PAN number to get the file number. The applicant can know the status of the IEC application using option "Status of IEC Application" on the website of of the Additional Director General of Foreign Trade (CLA).

Topics: Export-Import Procedures

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