Demystifying RBI Rules: Impact on Obtaining and Maintaining IEC Codes
What is the RBI code for exporters?
The RBI code for exporters is known as the Export Data Processing and Monitoring System (EDPMS) code. The Reserve Bank of India (RBI) uses the Export Data Processing and Monitoring System (EDPMS) code to track export transactions and ensure compliance with foreign exchange regulations.
How is the RBI code associated with the IEC code of DGFT?
The RBI code, also known as the Export Data Processing and Monitoring System (EDPMS) code, is associated with the Importer-Exporter Code (IEC) issued by the Directorate General of Foreign Trade (DGFT). Here's how they are linked:
- The IEC code, issued by the DGFT, serves as a unique identifier for exporters and importers in India.
- When exporters undertake export transactions, they must provide their IEC code with other details to the customs authorities for clearance.
- The RBI links each exporter's IEC code to an EDPMS code assigned to the exporters.
- The RBI utilises the EDPMS code to monitor and track export transactions, ensuring compliance with foreign exchange regulations.
- Thus, the RBI code (EDPMS code) is associated with the IEC code of DGFT through the export transaction monitoring process.
You need the RBI and IEC code to do export or import business.
Import-Export Number or IEC code
All businesses aiming for global expansion must acquire an IEC Code, facilitating the smooth movement of goods and services across borders. Securing an import-export license is essential for customs clearance and shipping. The IEC code is indispensable for individuals and companies seeking to enter the international market. The Importer Exporter Code (IEC), a unique 10-digit alphanumeric code, is allocated based on an entity's PAN. It is a prerequisite for engaging in import or export activities within India. Unless specifically exempted, no individual or entity can legally engage in foreign trade without obtaining an allocated IEC Code. The necessity of an IEC arises when availing benefits under the Foreign Trade Policy. The Directorate General of Foreign Trade (DGFT), operating under the Ministry of Commerce, Government of India, issues the IEC in electronic format (e-IEC). The application fee for obtaining an IEC is Rs. 500/-.
Instances where an IEC Code is unnecessary include:
- Government departments engaging in export and import activities.
- Designated charitable NGOs in import and export operations.
- Importing and exporting products for personal use by an individual.
What are the technical prerequisites for an IEC application?
The technical prerequisites for IEC application include:
- A valid Digital sign Token
- Valid PAN
- Valid Mobile Number and Email ID
- Accurate Address Details of the Branch Office
- Active Bank Account registered under the IEC Holder's name
- Aadhar Card validity matches the details provided in the PAN Card.
The latest versions of Google Chrome, Mozilla Firefox, Microsoft Internet Explorer, and Apple Safari are compatible with the new portal. To apply for an IEC, users must submit an online application (in ANF 2A format) on the DGFT portal.
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| Advantages of having an IEC Code. |
Where can I locate the IEC application?
- Visit the DGFT website and log in.
- Navigate to My Dashboard after accessing the IEC section or the IEC application.
- Register your digital signature details by following the provided instructions.
- Ensure all prerequisites for a digital signature are correct, and click "Register New DSC."
- Select and proceed with your digital signature details.
- After fulfilling the prerequisites for the digital signature, access a list of ePass tokens by clicking on Provider List and selecting the e-Pass token from the options.
- Choose the certificate for signing from the certificate list. The individual-based DSC is only permissible for proprietorship-type firms, adhering to the mentioned validations.
- Input your DSC token PIN into the 'Enter Password' field.
- Upon successful signing, a success message you will receive.
- Once the user registers the digital signature details successfully, you can view these details under the current digital signature details, enabling you to take action on IEC with the active digital signature.
An IEC issued to an applicant remains valid indefinitely, but it's crucial to update it annually to prevent deactivation. Updating the IEC between April and June incurs no fees. Failure to update the IEC within the specified timeframe results in deactivation, and you can reactivate upon successful updating without prejudice.
You'll receive an acknowledgement confirming the application's submission for IEC with a File No upon successful payment. You can track the application status using 'Track Status' and print a receipt if needed.
How do I print my IEC certificate?
- 1. Go to https://dgft.gov.in.
- 2. Log in with your username and password.
- 3. Access Services → IEC → Manage IEC.
- 4. Verify your details.
- 5. Click on Print IEC.
- 6. You can print a PDF file.
In conclusion, understanding the intricate relationship between RBI regulations and the process of obtaining and maintaining IEC codes is crucial for businesses engaged in international trade. Understanding RBI rules and how they affect IEC code procedures helps to follow compliance requirements better. Clear comprehension of these regulations enables smoother operations and ensures adherence to legal frameworks, ultimately facilitating seamless international transactions and fostering growth opportunities in the global market.