What is Import Export Code (IEC Code)?

The Import Export Code (IEC) is a 10-digit code that is a basic requirement for Indian businesses involved in import and export activities. This code is issued by the Directorate General of Foreign Trade (DGFT), Ministry of Commerce. Importers need an IEC to clear customs and conduct international transactions, while exporters rely on it to ship goods abroad and receive payments. The IEC Number is mandatory compliance for any importer or exporter operating in India.

What is the Benefits of Import Export Code (IEC Code)?

• Expansion of  Business: IEC enables access to global markets thus allowing businesses to expand their operations and multiply their reach by introducing their products and services to international markets.
• Minimum Papers Required: Acquiring an IEC does not need much documentation, making the process more simple. 
• No Filing of Return: There is no need to file returns with IEC. Once allocated, it maintains validity without the need of any ongoing processes. Even export transactions are not required to file their returns to DGFT.
• No Need For Renewal: An Importer-Exporter License remains effective for the entire period of a firm’s existence and does not require renewal. Once u get IEC license, it serves as an entity across all import and export transactions.
• Easy Online Registration: The process of acquiring an IE Code from DGFT is a simple process and completely digitized, offering a hassle-free experience. Getting an Importer-Exporter License usually takes 10 to 15 days time. No evidence of export or import is needed to get the Importer-Exporter License.
• Access to Variety of Benefits: Companies opting for Import Export License can access various benefits for their imports and exports through organizations like DGFT, Export Promotion Council, Customs, and more, leveraging the advantages of their IEC registration.

What is Import Export Code (IEC Code) Eligibility?

An IEC certificate can be obtained by any individual, partnership firm, company or Limited Liability Partnership (LLP) Registration engaged in import or export activities. An exporter or importer must have an IEC certificate for all such transactions. Even if a business is not actively engaged in import or export activities but is planning to carry out such activities in the future, it still needs to obtain an IEC license.

What is Prerequisites for Applying Import Export Code (IEC Code)?

To apply for an Import-Export License online, the following prerequisites are required:

• The business must be registered under the Registrar of Companies (ROC).
• PAN card 
• Bank account in the name of the firm or individual, as IEC certificates are issued in the name of the applicant.
• Other relevant documents such as identity proof, address proof, and business entity details to the DGFT office. 

What are the Requirement for Import Export Code (IEC Code)?

Importer-Exporter License is needed in the following scenarios:

• When an exporter has to send their shipments abroad, the customs port requires it.
• When an exporter directly receives foreign currency into their account, the bank mandates it to be quoted.
• When a shipment is required to be cleared by customs, the customs authorities demand it to be presented from the importer.
• It is demanded by the banks, when an importer wants to transfer money overseas through them. 

What is Importance of Import Export Code (IEC Code)?

The advantages of obtaining an IEC are multifaceted and are listed below:

• Lifetime Validity: An IEC registration comes with lifelong validity, remaining valid as long as the business operates. This eliminates the need for renewals, updates, and filings related to Import-Export Code registration.
• Checking Illegal Goods Transportation: One of the biggest benefits of securing an Import-Export code is the provision of providing authentic and accurate information. This serves as a safeguard against transportation of illegal goods, thus enhancing the authenticity of the trade.
• Easy Compliance: In contrast to various tax registrations, those engaged in import and export activities are not obliged with specific compliance needs, such as mandatory annual filings/return filings.
• Variety of Benefits: Importers and exporters having IE Code get many advantages. Registered businesses can enjoy subsidies from bodies like Customs and Export Promotion Council. Furthermore, through the Letter of Undertaking (LUT) filing under GST, exporters can engage in tax-free exports. Even if taxes are paid during exports, exporters can claim refunds of the tax amount.

What is Validity of Import Export Code (IEC Code)?

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

What is Import Export Code (IEC Code) Process?

The process for importer-exporter license registration online in India is quite simple and easy to complete. Here's how to register for an import-export license online in India:

• Go to the Directorate General of Foreign Trade (DGFT) website.
• Click on the 'Register' button if you are a new user. 
• Once registered, log in to the DGFT website using your registered email ID and password.
• Click on 'Online IEC Application' on the homepage, which will lead you to the import-export code application form.
• Fill in the IEC application form, submit the required details such as the name and address of the firm or individual, PAN number, bank account details, and contact information etc.
• Pay the application fee online.
• Now, review the application form and click on the 'Submit' button.
• After submitting the IEC application, track the status of your application online. 
• Once the IEC is issued, it shall be sent on your registered email ID.

What Documents Required for Import Export Code (IEC Code)?

• The documents required for an IEC registration are as follows:
• PAN card of the company( if applicable)
• Proof of identity
• Applicant’s PAN and Aadhaar card
• Copy of cancelled check/banker certificate of the current account in the name of the company.
• Incorporation certificate/partnership deed
• Address proof

What is Mandatory uses of IEC License?

Import Export License is needed for many mandatory purposes for different entities like:

Exporters

• To export goods from India, exporters are required to register for IEC.
• IEC must be quoted for shipments.
• Banks require IE Code for receiving foreign funding.

Importers

• To import goods into India.
• IEC is required during customs clearance.
• Banks demand IE Code for international money transfers.

Proprietors

• Individual business proprietors may obtain an IEC License in their name.
• Founding or registering a company is not necessary to obtain an IE Code.

What is Exemption of Import Export Code (IEC Code)?

• Persons involved in Import and Export in India for personal reasons and not connected to trade, agriculture, and manufacture are exempted from requirements of IEC. 
• Ministries/departments of central and state governments.
• Commercial public sector undertakings (PSU) who have obtained PAN must also obtain the import-export code. 

How To Download Import Export Code (IEC Code) Certificate?

Here are the few steps to download your IEC code certificate

• Log in to the DGFT's official website.
• Navigate to the Services section and choose IEC Profile Management.
• Scroll down and locate My IEC, then after click on Print IEC.
• Now get your IEC certificate in PDF format.

How to Modify Your Import Export Code (IEC Code)?

After registering and getting IEC license businesses need to revise and amend all related business information periodically. Neglecting to update these modifications can result in inconsistencies during customs checks. Ensuring that changes such as PAN updates, director appointments, and the inclusion or removal of partners are timely updated will streamline the business operations. 

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What is the IEC Registration Fees?

Are you looking for IEC Registration Fees then here the details for you. The IEC Registration cost start from ₹1500 to ₹5000 along with Government Fee ₹500 and Professional Fee ₹1000.

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