Importer Exporter Code

IEC Code Registration – 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

• The IEC registration helps traders including online e-commerce operators open the doors to venture into the global market
• Businesses can avail government schemes like the Merchandise Export from India Scheme (MEIS), the Service Export from India Scheme (SEIS), and others from customs and export promotion
• No compliance requirements post registration and hence maintaining the business is relatively simple.
• The process of obtaining IEC Code is not tedious and can be obtained with minimal, basic documents.

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

Nature of the Firm Obtaining an IEC Code

IEC 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 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 for IEC, 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 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 an IEC License Online?

The process for registering an IEC license online in India is relatively simple and can be completed in a few steps. Here’s how to register for an IEC 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 ‘Apply for IEC’ 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 IEC 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.