IEC[Import/Export Code]

Import Export Code (IEC Code)- Overview

An Import Export Code (IEC) is a 10-digit code necessary for Indian import/export businesses. It’s issued by the DGFT, Ministry of Commerce, and doesn’t require filing or renewal. Importers need IEC to clear customs and make payments to foreign banks, while exporters need it to send shipments and receive payments. The IEC Number is essential for any importer/exporter operating in India.

Benefits of IEC Code

Expansion of Business

IEC code facilitates the expansion of your businesses by enabling you to bring your services or products to the global market.

Accessing Multiple Benefits

Upon obtaining IEC registration, companies can avail various benefits for their imports/exports from entities such as DGFT, Export Promotion Council, Customs, etc.

No Requirement for Return Filing

IEC registration does not mandate the filing of any returns. Once allotted, there is no need to follow any specific process to maintain its validity. Even for export transactions, there is no requirement to file returns with DGFT.

Effortless Processing

Obtaining an IEC code from DGFT is relatively straightforward, typically taking 10 to 15 days after submitting the application. Proof of export or import is not necessary to acquire an IEC code.

No Renewal Necessary

An IEC code remains valid for the lifetime of an entity and does not require renewal. Once obtained, it can be used for all export and import transactions.

Situations Where IEC Code Is Required

You can use the IEC code in the following scenarios:

• When a shipment needs to be cleared by customs, the customs authorities require it from the importer
• When an importer transfers money overseas using banks, the bank requires it
• When an exporter has to dispatch their shipments, the customs port requires it
• When an exporter directly receives foreign currency into their bank account, the bank mandates it.

Validity of Import Export Code

The validity of an IEC certificate is for a lifetime. This means that once an IEC code is obtained, it is valid for all import or export transactions of the entity. There is no need to renew or update the IEC License after a certain period.

Nature of the Firm Obtaining an IEC Code

IEC certificate can be obtained by any individual, company, partnership firm, Limited Liability Partnership (LLP), or any other type of entity engaged in import or export activities. Whether you are an exporter or importer, having an IEC certificate is mandatory for all such transactions. Even if a business is not actively engaged in import or export activities, but plans to do so in the future, it still needs to obtain an IEC beforehand.

Prerequisites for Applying for IEC Code

To apply IEC code online, the following prerequisites are required:

• A valid Permanent Account Number (PAN) card issued by the Income Tax Department of India is mandatory
• The applicant must have a bank account in the name of the firm or individual, as IEC certificate is issued in the name of the applicant
• The business entity should be registered under the Registrar of Companies (ROC)
• The applicant needs to submit the relevant documents such as identity proof, address proof, and details of the business entity to the DGFT office.

How to Register for Import Export Code?

The process for importer-exporter code registration online in India is relatively simple and can be completed in a few steps. Here’s how to register for an import-export license online in India:

• Visit the Directorate General of Foreign Trade (DGFT) website, which is the official website for IEC registration in India
• If you are a new user, click on the ‘Register’ button and create a new account by providing your basic details such as name, email address, and phone number
• Once you have registered, log in to the DGFT website using your registered email ID and password
• Click on ‘Online IEC Application’ On the homepage of the DGFT website, which will redirect you to the import-export code application form
• Fill in the online IEC application form with all the required details such as the name and address of the firm or individual, PAN number, bank account details, contact information, and the required documentation
• Pay the import export code application fee online through internet banking, debit card, or credit card
• Once you have filled in the application form, uploaded the necessary documents, and paid the application fee, review the application and click on the ‘Submit’ button
• After submitting the IEC application, you can track the status of your application online. Once the IEC is issued, you will receive an IEC certificate on your registered email ID.

Documents Required for Import Export Code (IEC) Registration

The documents required for an IEC registration are listed below

• PAN card of the company (not applicable in the case of the proprietor)
• Applicant’s PAN and Aadhaar card (driving license/Aadhaar/voter ID)
• Incorporation certificate/partnership deed
• Address proof (electricity bill/rent agreement/Sale Deed of the office location)
• Copy of canceled cheque leaf/banker certificate of the current account in the name of the company.

Eligibility to Get IEC Code

Any type of business registration: sole proprietorship, partnership, private limited companies, charitable organizations dealing with imports and exports in India can register for import export code, irrespective of the size. However, an IEC Number is not required for the import/export of goods for personal use, which are not connected with trade, manufacture, or agriculture. There is no need for a business setup.

Exemption of Import Export Code

• Persons undertaking Import and Export in India for personal reasons and not connected to trade, agriculture, and manufacture
• The parties/individuals who import/export goods to/from Nepal and Myanmar with a single consignment must not exceed the value of ₹25,000 through Indo-Myanmar border areas and China (via Namgaya Shipkila, Gunji, and Nathula ports)
• As listed in Appendix – 3, Schedule 2 of ITC, exemption from obtaining IEC Code shall not be applicable for export of materials, organisms, special chemicals, equipment & technologies (SCOMET)
• Ministries/departments of central and state governments.

The following permanent IEC numbers shall be used by non-commercial PSUs and categories of importers/exporters mentioned against them for import/export purposes.

Commercial public sector undertakings (PSU) that have obtained PAN will, however, be required to obtain the import-export code number. The permanent IEC number as mentioned above shall be used by non-commercial PSUs.