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.
What is IEC Registration?
An IEC Registration is regarded as a legal document for the import, export business perspective. It is mandatory for the business to register themselves for the registration to avail the benefits through it. An IEC Registration is not required for individual or legislative purpose for any goods or services imported or exported in India.
Benefits of IEC Code
Business Expansion
IEC facilitates global market access, enabling businesses to expand by introducing their products and services internationally.
Accessing Multiple Benefits
Companies can access various benefits for their imports/exports through DGFT, Export Promotion Council, Customs, etc., leveraging their IEC registration.
No Return Filing
IEC eliminates the need for filing returns. Once allocated, it maintains validity without necessitating any ongoing processes. Even export transactions are not obligated to submit returns to DGFT.
Simplified Procedure
Acquiring an IEC code from DGFT is straightforward, usually taking 10 to 15 days upon application submission. No evidence of export or import is required to obtain the Importer exporter code.
No Renewal Required
An IEC code remains effective for the entirety of an entity’s existence and doesn’t require renewal. Once obtained, it serves as an entity across all import and export transactions.
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, and 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 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 cancelled cheque leaf/banker certificate of the current account in the name of the company.
Importance of Import Export Code
The advantages of obtaining an IEC are manifold, and a selection of these benefits is highlighted below:
- Global Market Access: The IE Code acts as a gateway to international markets, facilitating the smooth entry of products into the global arena. By obtaining an IE code, Indian companies gain easier access to international trade, fostering opportunities for expansion and progress.
- Simplified Online Registration: The process of acquiring an IE Code is entirely digitised, offering a hassle-free experience with minimal document submission.
- Minimal Document Requirement: Acquiring an IEC doesn’t necessitate an extensive document submission process, making the endeavour more efficient and straightforward.
- Perpetual Validity: An IE Code registration boasts lifelong validity, remaining effective as long as the business operates. This eliminates concerns about renewals, updates, and filings related to Import Export Code registration, as the registration remains intact throughout the company’s existence.
- Curbing Illicit Goods An IE Code registration boasts lifelong validity, remaining effective as long as the business operates. This eliminates concerns about renewals, updates, and filings related to Import-Export Code registration, as the registration remains intact throughout the company’s existence.Transportation: One fundamental stipulation for securing an Import-Export code is the provision of authentic and accurate information. This requirement acts as a deterrent against the transportation of unlawful goods, enhancing the integrity of the trade.
- Access to an Array of Benefits: Importers and exporters reaping the benefits of an IE code can tap into a spectrum of advantages. Registered businesses can enjoy subsidies from entities like Customs and Export Promotion Council. Furthermore, through Letter of Undertaking (LUT) filing under GST, exporters can engage in tax-free exports. Alternatively, if taxes are paid during exports, exporters can claim refunds of the tax amount.
- Simplified Compliance: In contrast to various tax registrations, those engaged in import and export activities are not burdened with specific compliance obligations, such as mandatory annual or return filings.
