What is Import Export Code (IEC) in India?
Import Export Code (IEC), also known as the Importer Exporter Code, is a 10-digit identification number issued by the Directorate General of Foreign Trade (DGFT), Department of Commerce, Government of India. It is mandatory for individuals or businesses intending to engage in import and export activities within Indian territory. The IEC facilitates smooth customs clearance and enables secure payments to foreign entities, crucial for seamless international trade transactions.
To obtain an IEC, applicants must fulfill specific criteria and comply with regulations stipulated by DGFT. Applications can be processed through regional or zonal offices of DGFT across India. Whether importing goods to meet domestic demands or exporting products globally, the IEC serves as a pivotal tool for businesses aiming to expand their market presence and capitalize on international trade opportunities.
Why is IEC Required?
IEC is mandatory under Indian law for any entity involved in import and export operations. It serves as a unique identifier for businesses, essential for clearing customs, and for transactions with foreign banks. Whether a business is importing raw materials or exporting finished products, having an IEC simplifies the Essential Regulatory Requirement: Import Export Code (IEC) is a mandatory 10-digit identification number issued by DGFT, required for businesses involved in import and export activities in India.
- Gateway to Global Markets: IEC facilitates entry into the international market by ensuring smooth customs clearance and secure transactions with foreign entities.
- Convenient Online Registration: The process to obtain IEC is entirely online with minimal document submission, streamlining the registration process for businesses.
- Lifetime Validity: Once obtained, IEC registration is valid for the lifetime of the business, eliminating the need for periodic renewal and ensuring continuous compliance.
- Curbing Illegal Practices: By mandating authentic information, IEC helps prevent illegal transportation of goods across borders, maintaining trade integrity.
- Availing Trade Benefits: Registered entities can benefit from customs subsidies, export promotion schemes, and GST benefits like LUT filing for tax-free exports or refunds.
- Compliance and Credibility: IEC compliance enhances a business’s credibility internationally, demonstrating adherence to Indian trade regulations and ensuring legitimacy in global transactions.
- Supporting Trade Policy Formulation: Accurate trade data collected through IEC registrations aids the government in formulating effective trade policies to enhance overall trade performance entire process, making it faster and more efficient.
- Application Process and Requirements: To obtain an IEC, applicants must meet specific criteria set by DGFT, which include providing details such as PAN card, address proof, identity proof, and bank certificate. The application can be submitted online through the DGFT portal or manually at the nearest zonal or regional office. Once the application is submitted, DGFT verifies the documents and processes the application.
What are the Benefits of IEC
Having an IEC opens up a world of opportunities for businesses in India. It allows them to participate in international trade, expand their market reach, and compete globally. Importers rely on the IEC for seamless customs clearance of goods, while exporters use it to ensure smooth shipments and receipt of payments from overseas clients.
Additionally, IEC holders can take advantage of various export promotion schemes and incentives offered by the Government of India to boost exports.
What is the Validity and Renewal of IEC?
Once issued, an IEC is valid for a lifetime and does not require renewal. However, any changes or modifications to the details provided during the application process must be updated with DGFT. This ensures that the information remains accurate and up-to-date for all import and export transactions
What are the documents required for IEC?
These documents are necessary for completing the IEC registration process with the Directorate General of Foreign Trade (DGFT). They ensure compliance with regulatory requirements and facilitate the smooth issuance of the Import Export Code (IEC) for businesses in India.
- Identity Proof
- PAN Card
- Passport size photograph
- Copy of Aadhar Card, Voter ID, Passport, or Driving License
- Proof of establishment/incorporation/registration (depending on the type of firm)
- Partnership deed
- Registered Society certificate
- Trust deed
- HUF declaration
- Proof of address documents (any one):
- Sale Deed
- Rent agreement
- Lease deed
- Electricity bill
- Telephone landline bill
- Mobile post-paid bill
- MoU
- Partnership deed
- Other acceptable documents
If address proof is not in the name of the applicant firm, a No Objection Certificate (NOC) from the premises owner along with their address proof is required as a single PDF document.
Banking Details:
- Proof of Firm’s Bank Account:
- Cancelled Cheque
- Bank Certificate
- Digital Signature Certificate (DSC) or Aadhaar of Firm’s Member:
- Active DSC or Aadhaar of the firm’s member for submission with the application.
What are the firms or entities that require Import Export Code (IEC) in India?
- Individuals or Sole Proprietorships: Any individual or sole proprietorship engaged in international trade activities such as importing goods into India or exporting goods from India requires an IEC
- Partnership Firms: Partnership firms involved in import-export transactions need to obtain an IEC to comply with regulatory requirements and facilitate customs clearance.
- Limited Liability Partnerships (LLPs): LLPs engaged in international trade operations, whether importing raw materials or exporting finished goods, must obtain an IEC.
- Private Limited Companies: Private limited companies that engage in cross-border trade activities, whether importing machinery or exporting software services, are required to have an IEC.
- Public Limited Companies: Public limited companies involved in import-export transactions, such as importing technology products or exporting pharmaceuticals, need to obtain an IEC.
- Registered Societies: Societies registered under the Societies Registration Act, engaged in international trade activities, require an IEC to comply with trade regulations.
- Trusts: Trusts involved in import or export operations, such as charitable trusts importing goods for humanitarian purposes or exporting handicrafts, must obtain an IEC.
- Hindu Undivided Families (HUFs): HUFs engaged in international trade activities, whether importing consumer goods or exporting agricultural produce, require an IEC.
- Others: Other entities or organizations engaged in international trade activities, such as educational institutions importing books or cultural organizations exporting artworks, also need an IEC.
What is the Procedure to Apply For IEC?
Step 1: Check Eligibility
Ensure you or your business entity is eligible to apply for an IEC. Most entities engaged in international trade, such as individuals, firms, companies, LLPs, trusts, etc., are eligible.
Step 2: Prepare Required Documents
Gather the necessary documents for IEC application:
- PAN Card
- Identity proof (Aadhar Card, Voter ID, Passport, or Driving License)
- Address proof (Sale Deed, Rent Agreement, Lease Deed, etc.)
- Proof of establishment/incorporation (Partnership deed, Society registration certificate, Trust deed, etc.)
- Bank certificate or canceled cheque for the firm’s bank account
- Digital Signature Certificate (DSC) or Aadhaar of the firm’s authorized signatory/member
Step 3: Online Application
- Visit the DGFT (Directorate General of Foreign Trade) website (https://dgft.gov.in/) and create an account if you don’t have one.
- Fill out the online application form for IEC (Aayaat Niryaat Form ANF 2A) with accurate details.
- Upload scanned copies of the required documents along with the application form.
Step 4: Payment of Application Fee
Pay the application fee online through the DGFT portal using available payment options. The fee structure varies based on the category of applicant (individual or firm).
Step 5: Submission of Application
Submit the completed application form and uploaded documents through the DGFT portal.
Step 6: Processing and Verification
DGFT will verify the application and the submitted documents. If additional documents or information is required, DGFT may request them.
Step 7: Issuance of IEC Certificate
- Upon successful verification, DGFT will issue the Import Export Code (IEC) certificate electronically.
- The IEC certificate includes a 10-digit code that serves as a unique identification number for your business in international trade.
Step 8: Post-Issue Steps
- Download and print the IEC certificate from the DGFT portal.
- Use the IEC certificate for customs purposes, opening an export-import bank account, and conducting international trade transactions.
FAQs
- How long does it take to get an IEC?
Typically, the processing time for an IEC application is 1-2 working days after submission of the complete application and documents. However, this may vary based on the completeness of the application and verification process by DGFT.
- Is IEC registration valid for a lifetime?
Yes, once obtained, IEC registration is valid for the lifetime of the entity or until it is surrendered or revoked. There is no need for renewal as long as the business continues to operate.
- Can an individual apply for an IEC?
Yes, both individuals and business entities can apply for an IEC if they are engaged in import-export activities. The process and requirements remain the same irrespective of whether the applicant is an individual or a business entity.
- Is it mandatory to mention IEC on shipping bills?
Yes, it is mandatory to mention the IEC number on all shipping bills and other export/import documents for customs clearance purposes. Failure to do so may result in delays or non-clearance of goods.
- Can I apply for multiple IECs for different businesses?
No, each entity (whether individual or business) is allowed only one IEC. If you have multiple businesses/entities requiring an IEC, they can all be covered under a single IEC obtained for your primary business entity.
