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

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.

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.

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.

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 it plans to do so in the future, it still needs to obtain an IEC beforehand.

Prerequisites for Applying 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, 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.

Eligibility to Get IEC Code

Importers

• Register for Importer Exporter Code (IEC) to import goods into India.
• IEC must be quoted during customs clearance.
• Banks demand IE Code for international money transfers.

Exporters

• Required to register for IEC to export goods from India.
• IEC must be quoted for shipments.
• Banks require IE Code for receiving foreign funds.

Proprietors

• Individual business proprietors can obtain an IE Code in their name.
• Incorporating a company is not necessary to obtain an IE Code.

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 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, equipments & 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) who 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.

How to download your IEC certificate?

1.Log in to the DGFT’s official website to access your IEC certificate.

2.Navigate to the Services section and choose IEC Profile Management

3.Scroll down and locate My IEC, then click on Print IEC.

4.Follow these steps to obtain your IEC certificate in PDF format.

How to modify your IEC Code

In addition to registering your IEC, it is crucial to periodically revise and amend all pertinent business information. Neglecting to update these modifications as an importer or exporter can result in inconsistencies during customs inspections. Ensuring that changes such as PAN updates, director alterations, and the inclusion or removal of partners are promptly updated will streamline the export procedure.

How to edit and renew IEC

The renewal of the IEC is essential annually, typically falling within the period from April to June. Failure to renew can result in the deactivation of your import-export certificate. Here’s the process to renew your IEC

• Access the DGFT portal and input your IEC code upon login.
• Select the ‘Update/Modify IEC’ option and complete a new application.
• Revise and update your particulars, then proceed to submit the application.