What is the cost of import license in India
The business of import and export is in boom in India as well as in the rest of the world these days. After the nationwide suspension of lockdown and resumption of International flights, the Indian economy has gradually started to rise as the export import consultancy services resumed once again. Many entrepreneurs are planning to start this utterly profitable business but due to lack of information about the rules, regulations, documentations and licensing, cannot go further. Importing and exporting of goods proves to be a huge boost for the economy for both the countries and even consumers are benefited immensely from this business since they get better options and availability of products that are not available in their country.
In this article, we will be discussing import export business licenses in India and how much time it takes for the license to be made.
What is an import-export license
If you have done an export import management course and are thinking of starting this business, the first thing you need is the license to import or export goods to/from other countries. This license can be obtained online where you need to register yourself and your business to get the license. The import license requirements are not very complicated and anybody can apply for it without much knowledge but it has been made mandatory by the Government of India to take the license if the import export is related to latest services or technologies.
Why do you precisely need an import export license?
You do not need the import export license merely because the government has made it mandatory but it has several other benefits and reasons. Any import or export done without the valid license is termed as illegal in all the countries of the world and the importer will be dealt by the law. When you do an online import export course you are explained about the license process in detail and its importance. The importer/exporter is required to mention each and every detail about their business practices in order to obtain a license. It also stops the illegal export and import of weapons
Even if you import goods from another country, the customs will not give clearance to the goods unless you show them IEC (Import Export Code). Also, while doing the payment of the goods you purchased or sent, the license is needed for processing the payments through banks internationally.
What is IEC?
IEC or Import Export Code is a 10 digit unique code issued by the Director General of Foreign Trade in India to an individual or a company to start an import export business. When it comes to import export license cost, you just have to pay Rs 250 online to get the IEC. Once you are issued the IEC, it is valid for lifetime and holds a lot of importance for carrying out the business in India smoothly. The importer and exporter cannot import and export goods to/from India unless they have IEC and they even cannot avail any scheme from the government related to Import export business without IEC.
Benefits of IEC registration
There are several benefits of getting the IEC which are listed below
- IEC helps you to expand your business and grow it in the international market.
- The importers/exporters can claim all the benefits declared by the DGFT via Government of India from time to time based on their IEC registration
- Once you get the IEC, you are not required to file any returns or fees for its validity to be kept alive.
- The process of obtaining the IEC is extremely easy and once you pay the nominal fees, you can get it in 5 to 7 days.
- There is no need to produce the proof of import or export to get the IEC
- IEC is valid for lifetime and once you get it, you can use it for all your import and export transaction for the lifetime