Import Export Code

In this age of cut-throat competition, everyone wants to grow their business beyond the limits of the domestic market. Doing business globally is more easy now-a-days due to the advent of internet and technology. However, before going business globally, you need to follow several procedures and laws and get various registration and license. IEC (Import Export Code) license is one of such prerequisites when you’re thinking of importing into or exporting from India. It is also known as Importer- Exporter Code.

IEC (Import Export Code) is required by anyone who is looking to kick-start his/her import/export business in the country. It is issued by the DGFT (Director General of Foreign Trade). IEC is a 10-digit code that has lifetime validity. Predominantly importer merchants cannot import goods without the Import Export Code and similarly, the exporter merchant cannot avail benefits from DGFT for the export scheme, etc., without IEC.

Import Export Code (IE Code)

Import & Export Code is to be obtained by the business entity for import into or export from India. Import & Export Code is popularly known as the IEC number. Import & Export Code is a ten-digit unique number issued by the Directorate General of Foreign Trade (DGFT).

IEC registration certificate is mandatory for a business involved in import and export. Hence, before initiating an import of goods into India, an importer must ensure that the importing entity has GST registration and IE code, both of which are required to clear customs.

If an importer does not have both GST and IEC Code Registration, the goods will be stuck at the port and start incurring demurrage charges or could be destroyed.

Situations where IEC is required

When an importer has to clear his shipments from the customs then it’s needed by the customs authorities.
When an importer sends money abroad through banks then it’s needed by the bank.
When an exporter has to send his shipments then it’s needed by the customs port.
When an exporter receives money in foreign currency directly into his bank account then it’s required by the bank.

Importance of Import Export Code

International market unlocks: As the IE Code is a requirement for the import and export business, they allow the products to reach the global market. IE code makes the entry of the international Indian company smoother and opens doors for growth and expansion.
Online IEC registration: The process to find the IE Code is entirely online and hassle-free with short document submission.
Less document requirement: It is not required to submit many documents to obtain an IEC.
Lifetime Validity: IE Code is a lifetime registration valid as long as the business exists. Hence, there are no issues with updating, filing, and renewing Import Export Code registration. The IEC registration is valid until the company exists or the registration is not revoked or surrendered.
Reduces illegal goods transportation: The most basic requirement for the Import-Export code is that you need to provide authentic information. Without giving proper information, IE code cannot be obtained. This criterion makes the transportation of illegal goods impossible.
Availing Several Benefits: IEC code registration has enormous benefits for importers and exporters. The registered business entities can get help through subsidies from the Customs, Export Promotion Council or other authorities. With LUT filing under GST, the exporters can make exports without paying taxes. If the exports are made with tax payment, the exporter can claim the refunds of the paid tax amount.
Compliances: Unlike other tax registration, the person carrying import or export does not require to fulfill any specific compliance requirements such as the annual filing or the return filings.

Documents required for IEC

Individual’s, firm’s or company’s copy of PAN Card.
Proprietor’s voter ID, Aadhaar card or passport copy.
Proof of establishment, incorporation or registration of the partnership, society, proprietorship firm, company, HUF, etc.
Proof of address of business premise, such as sale deed, lease deed, rent agreement or utility bills (electricity bill, telephone bill or mobile bill).
Individual’s or company’s or firm’s cancel cheque copies of current bank accounts.
A self-addressed envelope for delivery of IEC certificate by registered post.

Steps involved in IEC (Import/Export Code) registration

Visit the DGFT website.
Click on the ‘Services’ tab on the homepage.
Select the ‘IEC Profile Management’ option from the drop-down list.
A new page will open. Click on the ‘Apply for IEC’ option on the page.
Click on the ‘Register’ option. Enter the required details and click on the ‘Sent OTP’ button.
Enter the OTP and click on the ‘Register’ button.
Upon successful validation of the OTP, you will receive a notification containing the temporary password which you can change after logging into the DGFT website.
After registering on the DGFT website, login to the website by entering the user name and password.
Click on the ‘Apply for IEC’ option on the DGFT website dashboard.
Click on the ‘Start Fresh Application’ button.
Enter the general information, details of proprietor/partner/director/Karta/managing trustee, bank information, other details, attach Digital Signature Certificate (DSC) and make the payment.
After successful payment, it will be redirected to the DGFT website. The receipt will be displayed. Download the receipt for future reference.
The IEC Certificate will be sent in the email. It can be downloaded after logging in to the DGFT website and clicking the ‘Print IEC’ option under the ‘IEC Profile Management’.

FAQs

Is IEC mandatory?

Yes. An Importer-Exporter Code (IEC) is mandatory for import to India or export from India. It is a significant business identification number for an import/export business. A person/entity cannot export or import without obtaining an IEC unless specifically exempted. However, IEC is not necessary for services exports, except when the service provider is taking benefits under the Foreign Trade Policy.

Can individuals obtain IEC?

Yes, individuals acting as proprietors of a business can obtain IEC registration. Individuals can use either the name or the name of their company to apply for IEC registration.