Import Export Code

This code has many names, like importer exported code, import export code, import export license, import export number, IE code, IE license etc. You can issue this code in either your name or under company’s name. Once issued, it is valid for all its division/units/factories/branches.With the rapid upsurge in globalization, nowadays, the opportunity of having a cross border business is also increased. Moreover, an IEC Registration also assists an individual in unlocking the growth opportunities of the international business. Further, every individual who wants to expand his business on a global platform by dealing with the Import and Export business is mandatorily required to obtain IEC Registration.Hence, having an IEC (Import and Export Code) is one of the basic and essential prerequisites for expanding and running a business at the global level. Moreover, an IEC has various advantages annexed to it. One such benefit of an IEC Code is that it not only assists in unlocking the international market but also helps in increasing the business's growth level.

What is an Import Export Code?

IEC or Import-Export Code is a 10-digit code that an individual or a business needs for the import or export goods or services. Further, this code is allotted by the Director General of Foreign Trade (DGFT), Ministry of Commerce and Industries, Government of India.

Furthermore, the validity period of this code is for a lifetime. This means that there is no need for the IEC code holder to apply for its renewal. Hence, the company having IEC is able to perform all requirements concerning import-export and related issues.

Usually, a period of 12-15 working days is required for the generation of IEC code once all the required documents are submitted and corrections are made. Further, having an IEC is mandatory and compulsory for every commercial importer or exporter in India. Hence, the business not having IEC is not qualified to undertake the category of import and export.

Benefits of IEC Code Registration

The following listed are the benefits of IEC Registration:

• Expansion of Business
With the help of IEC code license take your business global and an individual can easily and smoothly expand the business's reach in the global market. Further, an IEC not only provides an opportunity for the business to export goods outside India but also assists in creating a name for oneself in the international market.
• Availing Several Benefits
Based on IEC registration, nowadays, businesses can enjoy and avail benefits provided by the EPC (Export Promotion Council), DGFT, and Customs.
• No Need to File Return
IEC does not require the filing of return. Hence, once an IEC Code is allocated, there is no need to abide by any procedure for proving its legitimacy. Further, in any event, relating to export transactions, DGFT does not require the fImport Export Code (IEC) acts as a government identity which is issued by the Director General of Foreign Trade. Hence, at the time of shipment clearance, one can show this identification number to the customs authorities. iling of any return.
• Hassle-Free Processing
The process of obtaining IEC registration from the DGFT (Director General of Foreign Trade) is genuinely simple and easy. Moreover, the same can be acquired within a period of 10-15 working days from presenting the application. Further, no evidence relating to export or import is needed subsequent for obtaining IEC Code.
• Free for Lifetime
Once an individual has obtained his or her IEC, he or she can enjoy its validity till perpetuity since it is free for a lifetime, and there is no need to apply for any renewal.
• Government Authorised
Import Export Code (IEC) acts as a government identity which is issued by the Director General of Foreign Trade. Hence, at the time of shipment clearance, one can show this identification number to the customs authorities.

When IEC Registration is Required?

The following listed are the situations which mandatorily requires IEC Registration:

• When an importer wants to clear his shipments from the customs authorities, this code is required by the customs authorities.
• Whenever an importer sends money abroad by way of banks, then the banks need this code.
• If an exporter wants to send his shipments abroad, this code is required by the customs port.
• Whenever an exporter receives money in the form of foreign currency directly into his bank account, then this code is required by the bank.
• For obtaining Food Licensing and APEDA Licensing, having IE Code is a must.
• Whenever an exporter wants to avail of some export subsidy, then this code is required by the export promotion council.

When IEC Registration is not Required?

The following listed are the situations which mandatorily requires IEC Registration:

• When an importer wants to clear his shipments from the customs authorities, this code is required by the customs authorities.
• Whenever an importer sends money abroad by way of banks, then the banks need this code.
• If an exporter wants to send his shipments abroad, this code is required by the customs port.
• Whenever an exporter receives money in the form of foreign currency directly into his bank account, then this code is required by the bank.
• For obtaining Food Licensing and APEDA Licensing, having IE Code is a must.
• Whenever an exporter wants to avail of some export subsidy, then this code is required by the export promotion council.

Features of Import Export Code Registration

The following listed are the Features of IEC Registration:

• No business can indulge in the activities concerning Import or Export without obtaining IEC registration.
• IEC works as evidence for the firm involved in the import or export of goods and products
• Once an individual has obtained IEC, then the same remains valid for a lifetime. This means this code does not require any filing or renewal.
• IEC Code is not required for the goods or services imported or exported either for individual or legislative purposes.
• An IEC is obligatory and mandatory for making foreign bank transfers.
• It is considerable for all parts of importers or exporters business.

Documents Required for IEC Registration

The following listed are the documents needed by a Sole Proprietorship Firm for obtaining IEC Registration:

• Digital photograph (3*3) of the proprietor
• A copy of proprietor’s PAN Card
• A copy of proprietor’s Passport, Voter ID, Driving License, UID
• A copy of sale deed, if in case the business is self-owned
• A copy of Rent Agreement or Lease Deed, if in case the business is rented.
The following listed are the documents needed by a Partnership Firm for obtaining IEC Registration:
• Digital photograph (3*3) of the managing partner
• A copy of the Partnership Deed
• A copy of the Managing Partner’s PAN Card
• A copy of Passport, Voter ID, Driving License, UID of the MD (Managing Partner) signing the document.
• A copy of sale deed, if in case the business is self-owned
• A copy of Rent Agreement or Lease Deed, if in case the business is rented.
• Bank certificate according to ANF 2A or a Cancelled cheque bearing the account number and the blueprinted name of the applicant entity
The following listed are the documents required by a Limited Liability Partnership and Company for obtaining IEC Registration:
• Digital photograph (3*3) of the Company’s Director or LLP Designated Partner who is signing the application
• A copy of applicant’s PAN Card
• A copy of Passport, Voter ID, Driving License, UID of the MD (Managing Partner), or the director signing the document.
• A copy of sale deed, if in case the business is self-owned
• A copy of Rent Agreement or Lease Deed, if in case the business is rented.
• Bank certificate according to ANF 2A or a Cancelled cheque bearing the account number and the blueprinted name of the applicant entity
The following listed are the documents required by a Trust for obtaining IEC Registration:
• Digital photograph (3*3) of the Managing Trustee or Chief Executive or the signatory applicant
• Certificate of Registration of society
• A copy of the Trust Deed
• A copy of Passport, Voter ID, Driving License, PAN card, UID of the Managing Trustee, or Chief Executive or the signatory applicant signing the document.
• A copy of Passport, Voter ID, Driving License, PAN card, UID of the Managing Trustee, or Chief Executive or the signatory applicant signing the document.
• A copy of Rent Agreement or Lease Deed, if in case the business is rented.
• Bank certificate according to ANF 2A or a Cancelled cheque bearing the account number and the blueprinted name of the applicant entity
The following listed are the documents required by a Hindu Undivided Family (HUF) for obtaining IEC Registration:
• Digital photograph (3*3) of the Karta
• A copy of Karta’s PAN Card
• A copy of Passport, Voter ID, Driving License, UID of the Karta
• A copy of sale deed, if in case the business is self-owned
• A copy of Rent Agreement or Lease Deed, if in case the business is rented.
• Bank certificate according to ANF 2A or a Cancelled cheque bearing the account number and the blueprinted name of the applicant entity
Procedure for IEC (Import Export Code) Registration

In the first step of the process, the applicant requires to visit the Official DGFT (Director General of Foreign Trade) Website. Further, the applicant needs to click on the option “Apply for IEC” located on the right side of the Homepage.

• Register User as ‘Importer’ or ‘Exporter’;
• First Name;
• Last Name;
• Applicant’s Email Address;
• Applicant’s Registered Mobile Number;
• Pin Code;
• Name of the District;
• Name of the City;
• Name of the State;
After filing all the details asked, click on the option “Send OTP”. Now, the applicant will receive a One Time Password (OTP) for verification on his/her Registered Mobile Number and Email Address.
After successful verification, the applicant will now receive a temporary password again on the registered E-mail Address, which he/she needs to mandatorily change after the first login. Fill-in Login Credentials

Now in the third step, the applicant requires to go back to the Homepage and choose the option “Apply for IEC”. After choosing the option, the applicant needs to provide his/her Login Credentials by selecting the option “Login”.

Provide Details in IEC Application Form

After providing the Login Credentials, the concerned applicant requires to click on the option “Start Fresh Application” and enter the required details.

The term ‘Required Details’ includes all types of details such as General, Bank, Specific, and Other Details. Further, after entering all the details, select the option saying “Save and Next” button.

Acceptance of Declaration

In this step, the applicant is required to tick the box named ‘Declaration’ and fill the place. Thereafter, click on the option “Save and Next”.

Final Submission

Now, the applicant will be re-directed to a new page wherein he/she requires to choose the option “Sign” located at the bottom of the webpage.

Mode of Submission

There are two methods through which an applicant is able to submit or sign his/her IEC registration form, i.e., Aadhar OTP (One Time Password) or DSC (Digital Signature Certificate). However, in the case of Aadhar OTP, the applicant will require to provide his/her Aadhar Number or Virtual ID and then submit the IEC Application Form.

Payment of Registration Fees

After successfully submitting and signing the IEC Registration Form, the applicant requires to choose the option saying “Confirm and Proceed to Make Payment”.
Further, for the purpose of making payment, the applicant will be re-directed to the Payment Gateway termed as “Bharatkosh”. The application fee for the IEC Code Certificate is Rs 500.

What are the changes made under IEC for GST?

After the enforcement of the GST regime, the GSTIN (Goods and Service Tax Identification Number) would be used for the credit flow of IGST (Inter-state Goods and Service Tax) paid on the import of products. However, PAN is an identifier at the substance or entity level of the limit. In contrast, GSTIN would be applied as an identifier at the transaction level for each import and export. Further, the UIN (Unique Identification Number) or PAN (Permanent Account Number) would be acknowledged as IEC. Furthermore, all the importers are required to state GSTIN in their solicitations, nevertheless IEC.

The following listed are changes made after the implementation of GST Laws:
• After the GST implementation, the traders were mandatorily required to declare their GSTIN at the time of import or export.
• GSTIN would be used for the credit flow of the IGST on import of goods, and for the rebate or refund of the IGST concerning the export of goods.
• Obtaining IEC will not be obligatory for all traders registered under GST.
• Exports or Imports done by the Ministries, Government of India Departments, Notified Charitable Institutions do not require Import Export Code.
• IEC is not necessary for the goods imported or exported for personal use.
What are the Exemptions under Import Export Code?

The following listed are exemptions under Import Export Code:

• The individual who is engaged in importing and exporting goods for individual purposes and not related to the trade, manufacturing, and horticulture are exempted from obtaining IEC registration.
• People who want to export or import products to or from Nepal and Myanmar by way of China and Indo-Myanmar fringe zones with a single transfer that does not exceeds Rs. 25,000 in Indian cash does not require IEC Registration.
• Exemption from acquiring IEC registration will not be valid for the export of SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) as provided in Appendix - 3, Schedule 2 of the ITC (HS).