In today’s highly competitive market, expanding your business beyond domestic borders is a crucial step for growth. Thanks to advancements in the internet and technology, conducting business globally has become easier than ever. However, before venturing into the global market, it’s essential to comply with various regulations and obtain the necessary registrations and licenses. One of the key prerequisites for importing into or exporting from India is the IEC (Import Export Code) license, also known as the Importer-Exporter Code.
Overview
The IEC (Import Export Code) is a mandatory requirement for anyone looking to start an import/export business in India. Issued by the Directorate General of Foreign Trade (DGFT), the IEC is a unique 10-digit code that remains valid for a lifetime. Importers cannot bring goods into India without an IEC, and similarly, exporters cannot avail themselves of benefits from the DGFT for export schemes and incentives without this code.
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.
Benefits
- Business Expansion
IEC registration enables you to take your products or services to the global market, paving the way for business growth and expansion.
- Access to Various Benefits
Companies with IEC registration can avail themselves of numerous benefits and incentives from the DGFT, Export Promotion Councils, Customs, and other related entities for their import/export activities.
- No Return Filing Requirements
Once you obtain an IEC, there is no requirement to file any returns or maintain additional compliance processes. The IEC remains valid without the need for regular filings or renewals, even for export transactions.
- Streamlined Process
Obtaining an IEC from the DGFT is a straightforward process that typically takes 10 to 15 days after submitting the application. Moreover, there’s no need to provide proof of import or export activities to receive the code.
- Lifetime Validity
The IEC is valid for the lifetime of your business entity and does not require renewal. Once issued, it can be used for all future import and export transactions, ensuring uninterrupted operations.
Documents Required for IEC (Import Export Code) Registration
To register for an IEC, you will need to provide the following documents:
- PAN Card
- A copy of the PAN card for the individual, firm, or company applying for IEC registration.
- Identity Proof
- A copy of the voter ID, Aadhaar card, or passport of the proprietor or authorized signatory.
- Proof of Establishment
- Documentation verifying the establishment, incorporation, or registration of the business entity, such as a partnership deed, certificate of incorporation, registration certificate for a society, or documents for a proprietorship firm or HUF.
- Business Address Proof
- Proof of the business premises’ address, which can include a sale deed, lease deed, rent agreement, or recent utility bills like electricity, telephone, or mobile bills.
- Bank Account Proof
- Canceled cheque copies from the current bank account in the name of the individual, firm, or company applying for IEC.
- Self-Addressed Envelope
- A self-addressed envelope to facilitate the delivery of the IEC certificate via registered post.
Steps Involved in IEC (Import/Export Code) Registration
- Visit the DGFT Website
- Begin by navigating to the official DGFT (Directorate General of Foreign Trade) website.
- Access the Services Tab
- On the homepage, click on the ‘Services’ tab to reveal a drop-down menu.
- Select IEC Profile Management
- From the drop-down list, choose the ‘IEC Profile Management’ option.
- Initiate the IEC Application
- A new page will open. On this page, click on the ‘Apply for IEC’ option.
- Register on the DGFT Portal
- Click the ‘Register’ button and enter the necessary details. After filling out the information, click on the ‘Send OTP’ button.
- OTP Verification
- Enter the OTP received on your registered mobile number or email, then click on the ‘Register’ button. Upon successful OTP verification, you will receive a notification with a temporary password, which you can change after logging in.
- Login to the DGFT Portal
- After registration, log in to the DGFT website using your username and temporary password.
- Start the IEC Application Process
- Once logged in, click on the ‘Apply for IEC’ option available on the dashboard. Then, click on the ‘Start Fresh Application’ button.
- Fill in the Required Details
- Complete the application form by providing general information, details of the proprietor/partner/director/Karta/managing trustee, bank details, and other relevant information. Attach your Digital Signature Certificate (DSC) and proceed to payment.
- Make the Payment
- After filling out the application and attaching the necessary documents, make the required payment. Upon successful payment, you will be redirected to the DGFT website.
- Download the Receipt
- A receipt will be displayed on the screen after payment. Download this receipt for your records.
- Receive and Download IEC Certificate
- The IEC Certificate will be sent to your registered email. You can also download it by logging into the DGFT website and selecting the ‘Print IEC’ option under the ‘IEC Profile Management’ section.
Cases where Import-Export Code (IEC) is not mandatory
According to the latest government circular, an Import Export Code (IEC) is not mandatory for traders registered under GST. In these cases, the trader's PAN will serve as the IEC code for all import and export activities. Additionally, an IEC is not required when goods are imported or exported for personal use and not intended for commercial purposes. Furthermore, imports and exports conducted by Government of India departments, ministries, and certain notified charitable institutions are exempt from the requirement to obtain an IEC.
