In such competitive times, every business wants to expand to a global level. With technological advancements, doing business on an international level has become easily accessible. However, before making your business reach the international markets, you will have to follow some rules and procedures and get several registrations and licenses issued.

Import Export Code (IEC) license is one such prerequisite that you will require before proceeding to import or export in India. IEC is also known as Importer-Exporter Code.

Anybody who desires to start an export-import business in India will need an IEC issued through the Director General of Foreign Trade (DGFT). IEC is a ten digit code that is valid for a lifetime. Without an Import Export Code, the importer merchants will not be able to import goods. Similarly, the exporters cannot gain any benefits from DGFT under any export scheme without IEC.

Where is IEC required?

Here are the situations mentioned below where you will require an Import Export Code (IEC) for your import-export business.

• The customs authority asks for the IEC when an importer applies for clearance of their shipment from customs.
• The customs port requires an IEC when an import manufacturer sends their shipment.
• When an importer transfer money across borders through a bank then they need to give the IEC to the bank.
• When an exporter receives payment in foreign currency directly in their bank account, then the bank asks for an IEC to process the transactions.

Stepwise guide to Register for Import Export Code (IEC)

Here is a step-by-step guide for a better understanding and a seamless experience while registering for IEC.

1. Go to the Director General of Foreign Trade (DGFT) website.
2. Go to the ‘Services’ tab on the homepage.
3. Then click on the ‘IEC Profile Management’ option in the drop-down list.
4. You will see a new page. There you will have to go to the ‘Apply for IEC’ option.
5. Go to the ‘Register’ option and fill in the required information. Further, click on the button ‘Send OTP’.
6. Enter the OTP that you received and then click the ‘Register’ button.
7. After the verification is successful, you will receive a notification mentioning a temporary password which you may change after you have logged in to the DGFT website.
8. After registration on the DGFT website, enter your username and password on the website.
9. Then click on the ‘Apply for IEC’ option.
10. Fill in the application (ANF 2A format) and then upload the documents mentioned in the form. Pay the fees and go to the ‘Submit and Generate IEC Certificate’ option.
11. Then the DGFT will generate the Import Export Code. Afterwards, you may take out a print of the certificate.

What are the Documents Required for IEC Registration?

Here is the list of documents you will need for IEC registration.

• The individual’s, or company’s PAN Card copy.
• A copy of the Voter ID or Aadhar card or passport of the applicant.
• Individuals’ or companies’ or firms’ cancelled cheque copies of current bank accounts.
• Copy of the rent or lease agreement or copy of the electricity bill of the business premise.
• An envelope that is self-addressed to get the IEC certificate delivered through the registered post.

What are the Advantages of IEC Registration?

With IEC registration importers and exporters have various benefits, they can:

Expand their Business

IEC guides you to extend your products and services to the international market and effectively expand your business globally.

Avail Benefits Under the Scheme introduced by the DGFT

The businesses can apply for help and benefits for their exports or imports from the DGFT, Customs, Export Promotion Council, etc., on the grounds of their IEC registration.

Do Away with Return Filing

There is no requirement of filing any returns with the Import Export Code registration. Once it is issued, you are not required to follow any procedures to sustain its validity. There is no need for filing returns with DGFT for export transactions and payments too.

Ease the Processings

After you have applied for obtaining an IEC code from the DGFT, it will easily be processed within 10 to 15 days. The importers or exporters are not required to provide any evidence of export or import to get the IEC code.

Be Free from Regular Renewals

IEC is effective for a lifetime and thus requires no renewal. IEC can be used by an entity against all import and export transactions.

Is IEC Mandatory?

There are cases where Import Export Code is not necessary. As per the latest circular issued by the government, IEC is not important for all trade businesses under GST. In such cases, the trader’s PAN can be construed for a new IEC to import and export.

With the introduction of GST, the Import Export Code number is the same as the PAN number of the company. However, PAN should not be misunderstood as IEC by default, because the IEC is separately issued by the DGFT after you have filed an application.

If the goods imported or exported are for personal use instead of commercial purposes, there is no need for Import Export Code (IEC).

Also, the Government of India Departments and Ministries and Notified Charitable institutions do not need to have Import Export Code for trade and transactions.

Final Words

Being in the export-import business, you must be aware of various schemes issued by the DGFT, such as the Advance Authorisation Scheme (AAS). Under this scheme, businesses can carry on duty free imports of inputs that have to be physically used in manufacturing an export product. Additionally, the fuel, packaging material, and catalyst which are incorporated in the production process of the export product are also allowed.

The manufacturer exporters or merchant exporters who are connected with supporting manufacturers for physical exports, supply of stores on board foreign vessels or aircraft, and intermediate supplies can avail of the Advance Authorisation License. 

To have an in-depth understanding of the Advance Authorisation Scheme and implementation of the Import Export Code, it is recommended that you seek assistance from a professional DGFT consultant. These expert consultants have years of experience and expertise in the field. Their knowledge will help you seek maximum benefits and enhance your business in the domestic as well as the global sphere.

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