Import Export Code(IEC)
Import Export Code (also known as IEC code) is a 10-digit identification number that is issued by the DGFT (Director General of Foreign Trade), Department of Commerce, Government of India. It is also known as Importer Exporter Code. Companies and businesses must obtain this code to start a business that deals with import and export in the Indian Territory. It is not possible to deal with export or import business without this IEC.
Where IEC Code is required- followings are the cases whare Import Export Code are required
- Custom authorities at the time of Import – Clearing of shipments by an importer from the customs, then IEC is required by the custom authorities.
- Custom authorities at the time of Export – At the time of sending shipments by the exporter, then IEC is needed by the customs port.
- Bank at the time of sending money abroad – When an importer sends money abroad through banks then it’s needed by the bank.
- Bank at the time of receiving money from abroad – When an exporter receives money in foreign currency directly into his bank account then it is required by the bank.
Procedure of IEC (Import/Export Code) Registration
- Visit the DGFT website.
- Click on the ‘Services’ tab on the homepage.
- Select the ‘IEC Profile Management’ option from the drop-down list.
- A new page will open. Click on the ‘Apply for IEC’ option on the page.
- Click on the ‘Register’ option. Enter the required details and click on the ‘Sent OTP’ button.
- Enter the OTP and click on the ‘Register’ button.
- Upon successful validation of the OTP, you will receive a notification containing the temporary password which you can change after logging into the DGFT website.
- After registering on the DGFT website, login to the website by entering the user name and password
- Click on the ‘Apply for IEC’ option on the DGFT website.
- Fill the application form (ANF 2A format), upload the required documents, pay the required fees, and click on the ‘Submit and Generate IEC Certificate’ button.
- The IEC code will be generated by the DGFT. You can take a printout of your certificate once the IEC code is generated.
Following are the advantages of IEC registration-
- Import Export Code helps in taking services or product to the global market and helps to expand the business.
- Several benefits can be availed by companies of imports/exports from the DGFT, Export promotional Council, Customs, etc. based on IEC registration.
- No filing of returns is required for IEC. There is no requirement to follow any sort of process for sustaining its validity.
- It is valid for the lifetime of an entity and no IEC Code renewal is required.
- It is an easy process to obtain IEC from the DGFT within a day after the application is submitted.
The following are the import-export IEC Registration-
- PAN Card & Aadhar of the Directors/owners
- PAN of the Business
- GST Certificate
- Passport size Photograph
- Copy of cancel cheque of Current bank Account
- Copy of Rent Agreement or Electricity bill of premises.
- Certificate of Incorporation/ Partnership Deed.
Exemption From IEC Registration – List of categories of Importer and Exporters exempt from obtaining IEC
- Ministries or Departments of Central or State Government.
- Persons importing or exporting goods for person use not connected with trade or manufacture or agriculture.
- Persons importing or exporting goods from or to Nepal, Myanmar through Indo-Myanmar border areas and China, provided CIF value of a single consignment does not exceed Rs.25000. In case of Nathula port, the applicable exemption ceiling is Rs.1 lakh. Exemption from obtaining IE code is not applicable in case of export of special chemicals, organisms, materials, equipments and technologies listed in Appendix 3 of Schedule 2 of ITC HS.
Cancellation of IEC Registration– As far as the cancellation of IEC registration is concerned, it may come to effect under the following cases
- Export or import of prohibitive items
- Misleading custom authority by fabricating information in the shipping documents
- Non-adherence to custom’s directions
- Breaching norms cited under Foreign Trade Policy.